ACT No. VIII of 2021 AN ACT to amend the Income Tax Act, Cap. 123, the Duty on Documents and Transfers Act, Cap. 364, the Income Tax Management Act, Cap. 372, and the Value Added Tax Act, Cap. 406.

I assent.

(L.S.)

GEORGE VELLA

President

12th March, 2021

ACT No. VIII of 2021

AN ACT to amend the Income Tax Act, Cap. 123, the Duty on

Documents and Transfers Act, Cap. 364, the Income Tax Management

Act, Cap. 372, and the Value Added Tax Act, Cap. 406.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

The short title of this Act is the Various Revenue Acts

(Amendment) Act, 2021.

PART I

This Part amends the Income Tax Act and it shall be read and

construed as one with the Income Tax Act, hereinafter in this Part

referred to as the "principal Act".

In sub-article (6) of article 33 of the principal Act, the words

"the payor shall become liable to a penalty of not more than twenty-

three thousand euro (23, 000) as may be prescribed by the Minister"

shall be substituted by the words "the payor shall be guilty of an

offence and shall be liable on conviction to a fine (multa) of not more

than twenty-three thousand euro (€23,000)".

In sub-article (3) of article 34 of the principal Act, the words Amendment of

"the payor shall become liable to a penalty of not more than twenty- article

principal Act.

three thousand euro (€23,000) as may be prescribed by the Minister"

shall be substituted by the words "the payor shall be guilty of an

offence and shall be liable on conviction to a fine (multa) of not more

than twenty-three thousand euro (€23,000)".

PART II

This Part amends the Duty on Documents and Transfers Act Amendments to

and it shall be read and construed as one with the Duty on Documents the

Documents and

and Transfers Act, hereinafter in this Part referred to as the "principal Transfers

Act".

Sub-article (6) of article 19 of the principal Act shall be Amendment of

article 19 of the

substituted by the following new sub-article

principal Act.

"(6) Except as may be necessary for the purpose of this

Act or where the Commissioner otherwise directs, every person

having an official duty or being employed in the administration

of this Act, shall be bound by the duty of professional secrecy in

respect of anything which may come to his knowledge in the

course of the exercise of his powers under this Act and shall not

disclose the result thereof except to any authority competent in

relation to the collection of duty under this Act or for the

purpose, or in the course of an investigation or a prosecution for

any offence committed against the provisions of this Act, or in

the course of an investigation or prosecution for any relevant

offence. Any such officer who otherwise discloses such result

shall be guilty of an offence and shall, on conviction, be liable to

a fine (multa) of not less than two hundred and thirty euro (€230)

and not more than two thousand and three hundred euro

(€2,300), or to imprisonment for a period not exceeding six (6)

months, or to both such fine (multa) and imprisonment.

For the purposes of this sub-article, "relevant offence"

means a criminal offence, not being one of an involuntary nature,

consisting of any act or omission which if committed in Malta, or

in corresponding circumstances, would constitute an offence

liable to the punishment of imprisonment or of detention for a

term of one (1) year or more.".

PART III

This Part amends the Income Tax Management Act and it Amendments to

shall be read and construed as one with the Income Tax Management the

Management

Act, hereinafter in this Part referred to as the "principal Act".

Act.

Article 4 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, the words "Prime Minister"

shall be substituted by the word "Commissioner";

(b)

sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) No person appointed under or employed in

carrying out the provisions of the Income Tax Acts shall be

required to produce any return, document or assessment or

to divulge or communicate any matter or thing coming

under his notice in the performance of his duties under the

Income Tax Acts except as may be necessary for the

purpose of carrying into effect the provisions of the Income

Tax Acts, or for the purpose, or in the course, of an

investigation or a prosecution for any offence committed

against any of the provisions of the Income Tax Acts, or in

the course of an investigation or a prosecution for any

relevant offence.";

(c)

immediately after sub-article (2) thereof there shall

be added the following new sub-article

"(2A) For the purposes of this article, "relevant

offence" means a criminal offence, not being one of an

involuntary nature, consisting of any act or omission which

if committed in Malta, or in corresponding circumstances,

would constitute an offence liable to the punishment of

imprisonment or of detention for a term of one (1) year or

more.";

(d) sub-article (3) thereof shall be substituted by the

following new sub-article

"(3) Nothing contained in this article shall prejudice

the international obligations that the Commissioner or

any person referred to in sub-article (2) may have,

including confidentiality obligations under arrangements

made under article 76 of the Income Tax Act and

regulations implementing EU Directives under article

52B of the Income Tax Act and shall not prevent the

disclosure to any authorised representative of any other

Government of such information as is required to be

disclosed in terms of -

(a) any arrangement made under article 76

of the Income Tax Act including the disclosure of

such facts as may be necessary to enable proper

relief to be given in Malta or elsewhere under any

such arrangement or under article 89 of the Income

Tax Act;

(b) any other arrangement between Malta

and other States or their tax authorities providing

for the reciprocal exchange of information for tax

purposes."; and

(e)

sub-article (9) thereof shall be deleted.

Sub-article (3) of article 14 of the principal Act shall be Amendment of

article 14 of the

amended as follows

principal Act.

(a) paragraph (a) thereof shall be substituted by the

following

"(a) Where the Commissioner has reasonable

grounds to suspect that the tax has been, is, or may be

evaded by any person, he may request, by notice in writing

to a designated person, that the designated person provides

the Commissioner, within the time indicated in such notice

not being less than fifteen (15) days from the date of

service of such notice, with all such information and

documentation which the designated person may have

relating to property of any kind or description, transferred

or delivered to him by that person and owned, possessed,

or held by the designated person under any title on behalf

of or for the benefit of any such person on the date of the

said notice or during the period specified in such notice not

commencing earlier than five (5) years from the date of

such notice.";

(b)

paragraph (e) thereof shall be substituted by the

following

"(e) (i) The provisions of this sub-article shall

override and shall apply notwithstanding the provisions

of any law imposing fiduciary obligations of the

designated person or associate towards any person,

including his customer, principal or other person who

may have delivered, settled, donated or otherwise

transferred property to the designated person.

(ii) The rights of the data subject referred to in

regulation 4 of the Restriction of the Data Protection

(Obligations and Rights) Regulations, in particular the

right of access, shall be restricted, partially or completely,

where such a restriction is necessary and proportionate

for a designated person to adhere to his obligations under

this sub-article.

(iii) Disclosures made in the following

circumstances shall not constitute an offence under this

paragraph

(A) disclosures to the Commissioner or to a

person authorised by the Commissioner;

(B) disclosures made by the designated

person to an associate or by an associate to another

associate that are necessary in order for him to

comply with the Commissioner’s request for

information pursuant to this sub-article;

(C) disclosures made in the course of

proceedings instituted in any court or tribunal or

administrative body against the designated person

or associate to the extent that the disclosures are

required for the proper defence of the designated

person or associate;

(D) disclosures made in the course of any

proceedings in any court or tribunal, or to any

administrative body or authority, as long as a

waiver for such disclosure has been given in writing

by the Commissioner.

(iv) In this paragraph, "associate" means an

e m p l o y e e , e m p l o y e r, pa r t n e r o r a s s i s t a n t o f t h e

designated person but does not include the person or any

of the persons whose details are indicated in the notice

issued pursuant to this sub-article as required by sub-

paragraph (ii) of paragraph (c).";

(c) in sub-paragraph (iii) of paragraph (f) thereof, the

words "administrator of such property;" shall be substituted by

the words "administrator of such property.";

(d)

sub-paragraph (iv) of paragraph (f) thereof shall be

deleted.

In sub-article (5) of article 20 of the principal Act, the words

"premises referred to in sub-article (1)." shall be substituted by the

words "premises referred to in sub-article (1):" and immediately

thereafter there shall be added the following new proviso

"Provided that in the exercise of the said powers and for

such purpose the Commissioner may request the assistance of the

Police Force, who shall for such purpose exercise such powers as

are vested in them at law.".

Article 54 of the principal Act shall be amended as follows

Amendment of

article 54 of the

principal Act.

(a) article 54 shall be renumbered as sub-article 54(1);

(b) after sub-article (1) thereof there shall be added the

following new sub-article

"(2) The payment of any tax as mentioned in the

preceding sub-article may be enforced in terms of article

40(2) of the Act, which shall be applicable mutatis

mutandis, in like manner as it had been given in a civil

action between the Commissioner and the offender.".

In article 56 of the principal Act, after the words "sanction of Amendment of

the Commissioner" there shall be added the words "which shall not be article

principal Act.

unreasonably withheld".

PART IV

This Part amends the Value Added Tax Act and it shall be read Amendment to

and construed as one with the Value Added Tax Act, hereinafter in this the

Tax Act.

Part referred to as the "principal Act".

Article 56 of the principal Act shall be amended as follows

Amendment of

article 56 of the

principal Act.

(a) in sub-article (1) thereof, the words "Prime Minister"

shall be substituted by the word "Commissioner";

(b)

sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) No person appointed under or employed in

carrying out the provisions of this Act shall be required to

produce any document or to divulge any matter coming

under his notice in the performance of his duties under

this Act except as may be lawfully required for the

purpose of carrying into effect the provisions of this Act,

or for the purpose or in the course of any appeal made in

accordance with this Act or a prosecution for any offence

against any of the provisions of this Act, or in the course

of an investigation or a prosecution for any relevant

offence

Provided that the provisions of this article shall

not prejudice the international obligations that the

Commissioner or any person referred to in this sub-article

may have, including confidentiality obligations under

arrangements made under article 76 of the Income Tax

Act.";

(c) immediately after sub-article (2) thereof, there shall

be added the following new sub-article

"(2A) For the purposes of this article, "relevant

offence" means a criminal offence, not being one of an

involuntary nature, consisting of any act or omission which

if committed in Malta, or in corresponding circumstances,

would constitute an offence liable to the punishment of

imprisonment or of detention for a term of one (1) year or

more.";

(d)

sub-article (4) thereof shall be amended as follows

(i) the words "to the Commissioner for Inland

Revenue," shall be deleted;

(ii) the words "as may be directed by the Minister"

shall be deleted; and

(e) in sub-article (5) thereof, the words "Council

Regulation (EEC) No 218/92 of 27 January 1992 on

administrative cooperation in the field of indirect taxation

(VAT)" shall be substituted by the words "Council Regulation

(EU) No. 904/2010 of 7 October 2010 on administrative

cooperation and combating fraud in the field of value added tax".

Passed by the House of Representatives at Sitting No. 439 of the

11th March, 2021.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€0.90