ACT No. XII of 2023 AN ACT to implement Budget Measures for the Financial Year 2023 and other administrative measures.

I assent.

(L.S.)

GEORGE VELLA

President

4th April, 2023

ACT No. XII of 2023

AN ACT to implement Budget Measures for the Financial Year

2023 and other administrative measures.

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:-

Implementation Act, 2023.

PART I

PRELIMINARY

The provisions of this Part shall be deemed to have come into

force on the 1st January, 2023.

For the purpose of this Part, "revenue" has the same meaning

as is assigned to it in article 2 of the Public Finance Management Act,

but does not include proceeds from loans.

(1) Subject to the provisions of this Act, the Government of

Malta may raise, by way of loan, a sum of money not exceeding one

billion and six hundred million euro (€1,600,000,000).

(2) For the purpose of raising the aforesaid loan the Minister

responsible for Finance and Employment is hereby authorised to raise

such loans under the provisions of the Government Borrowing and

Management of Public Debt Act, on such terms and conditions as the

said Minister may approve.

Any money borrowed under the authority of this Part shall be

appropriated and applied for the purpose of

(a) meeting excess expenditure over revenue incurred in

the Consolidated Fund during the year 2023; and

(b) redeeming registered stocks and debt instrument

which shall be due for redemption during the year 2023; and

(c)

contributing funds in the sinking funds; and

(d) effecting portfolio changes in relation to amounts

raised through Treasury Bills, amounts raised through

Government Stocks, and in respect of loans raised outside Malta

as and when required in line with Government’s debt

management policies.

PART II

AMENDMENTS TO THE CUSTOMS ORDINANCE

This Part amends the Customs Ordinance and it shall be read Amendments to

and construed as one with the Customs Ordinance, hereinafter in this the

Ordinance.

Part referred to as "the Ordinance".

Sub-article (2) of article 8C of the Ordinance shall be Amendment to

article 8C of the

substituted by the following new sub-article

Ordinance.

"(2) For the purposes of this article and of articles

8A, 8B and 8D the word "container" means the same as

the meaning assigned to it in article 20 of the Import

Duties Act, and also includes a commercial road

vehicle as therein defined.".

Immediately after article 8C of the Ordinance there shall be Addition of new

article 8D to the

added the following new article

Ordinance.

Notwithstanding any provision of this

"Examination of a

container which is

Ordinance, the Commissioner or an official may, when

declared to be

empty.

he deems it appropriate, examine a container that was

declared to be empty.".

Paragraph (k) of article 62 of the Ordinance shall be Amendment of

article 62 of the

substituted by the following

Ordinance.

"(k) aids, abets or assists the commission of the crimes

mentioned in this Ordinance; or".

Article 63 of the Ordinance shall be amended by the Amendment of

article 63 of the

following

Ordinance.

(a) in paragraph (c) of sub-article (1) thereof, the words

"of article 62(m) of this Ordinance" shall be substituted by the

words "of article 62(m) and of article 62A"; and

(b) in paragraph (b) of sub-article (2) thereof, the words

"Without prejudice to sub-article (6)" shall be substituted by the

words "Without prejudice to sub-article (5)".

Immediately after article 64 of the Ordinance there shall be Addition of new

article 64A to

the Ordinance.

added the following new article

" When an object is

64A. When an object is forfeited in accordance with

an article of customs legislation, the duty and taxes due

on the forfeited object shall not be collected.".

Sub-articles (1), (2) and (3) of article 68 of the Ordinance

shall be substituted by the following new sub-articles

"(1) All ships, vehicles, other means of transport and

anything that may contain any other objects, together

with horses or animals and other objects that have been

knowingly used in the importation, disembarkation, in

discarding, retaining, concealing, or transporting any

objects whose duty is not paid or other objects which are,

under this Ordinance, liable to forfeiture, shall be

forfeited

Provided that no vessel shall be liable to

forfeiture by the application of this article, if that vessel

is not less than two hundred and fifty (250) tons burden.

(2) (a) With regard to any vessels of two

hundred and fifty (250) tons burden or more, the

Commissioner, in any case in which, in his opinion, any

responsible officer of such vessel is, by act or

negligence, involved in the act, may proceed to take

proceedings in the manner prescribed by article 66, and

without prejudice to any appeal as mentioned in that

article, for the condemnation of the said vessel of that

sum mentioned in paragraph (b). For this purpose, the

Commissioner may request, in the case of any vessel

mentioned in this sub-article, that this sum be placed in

his hands as a precaution against the decision that the

court shall give, and in case of failure to pay this

deposit, the Commissioner may detain such vessel.

(b) The sum referred to in paragraph (a)

shall be

(i) half a million euro (€500,000) for

vessels of between two hundred and fifty

(250) and nine thousand, nine hundred and

ninety-nine (9,999) tons burden;

(ii) six hundred thousand euro

(€600,000) for vessels of between ten

thousand (10,000) and nineteen thousand,

nine hundred and ninety-nine (19,999) tons

burden;

(iii) seven hundred thousand euro

(€700,000) for vessels of between twenty

thousand (20,000) and twenty-nine thousand,

nine hundred and ninety-nine (29,999) tons

burden;

(iv) eight hundred thousand euro

(€800,000) for vessels of between thirty

thousand (30,000) and thirty-nine thousand,

nine hundred and ninety-nine (39,999) tons

burden;

(v) nine hundred thousand euro

(€900,000) for vessels of between forty

thousand (40,000) and forty-nine thousand,

nine hundred and ninety-nine (49,999) tons

burden;

(vi) one million euro (€1,000,000) for

vessels of between fifty thousand (50,000)

and fifty-nine thousand, nine hundred and

ninety-nine (59,999) tons burden;

(vii) one million, one hundred

thousand euro (€1,100,000) for vessels of

between sixty thousand (60,000) and sixty-

nine thousand, nine hundred and ninety-nine

(69,999) tons burden;

(viii) one million, two hundred

thousand euro (€1,200,000) for vessels of

between seventy thousand (70,000) and

seventy-nine thousand, nine hundred and

ninety-nine (79,999) tons burden; or

(ix) one million, three hundred

thousand euro (€1,300,000) for vessels of

eighty thousand (80,000) tons burden or

more.

(3) There shall be no right of action against the

Commissioner for damages caused by the payment of the

deposit or by the retention of any vessel, vehicle, any

other means of conveyance, anything that may keep in it

other goods, horses, animals and any other goods which

have been knowingly used in the importation, landing,

discarding, keeping, concealment, or in the carriage of

any goods on which the duty is not paid or other items

that are, under this Ordinance, subject to forfeiture.".

Sub-article (1) of article 69 of the Ordinance shall be Amendment of

article 69 of the

substituted by the following new sub-article

Ordinance.

"(1) All vessels, goods, vehicles, other means of

conveyance and any item that can hold in it other objects,

together with all horses or other animals and things liable to

forfeiture, may be seized in any place, either upon land or water,

by any Customs official or Police officer, and such vessels,

goods, vehicles, other means of conveyance and any item that

can hold in it other objects, together with all horses and other

animals and things so seized shall forthwith be delivered into the

control of the Commissioner or in any other way be securely

placed in a place where the Commissioner exercises control.".

Article 70 of the Ordinance shall be substituted by the

following new article

70. (1) Every Customs official or Police officer

may,

upon reasonable suspicion, stop and examine at any

of conveyance, etc.,

place any means of conveyance and any item that can

hold in it other objects, to ascertain whether any

smuggled goods are contained therein. Where no

smuggled goods are found, such official or officer shall

not, on account of such stoppage and examination, be

liable to any action or prosecution.

(2) Every person driving or conducting such

means of conveyance or is responsible for any item that

may hold in it other objects and who refuses to stop or

allow such examination on being so requested, shall be

liable to a fine (multa) not exceeding two hundred and

thirty-two euro and ninety-four cents (€232.94).".

Article 72 of the Ordinance shall be substituted by the

following new article

72. (1) Whenever goods are withheld under this

goods are withheld.

Ordinance, the official who does the withholding shall

issue a receipt for withheld goods to the person from

whom the objects were taken or else the receipt for

withheld goods shall be affixed to the place from where

the goods were withheld.

(2) Where within a period of ninety (90) working

days from when the object was withheld the

Commissioner decides that the object is not subject to

seizure or if he fails to take a decision regarding that

object, the Commissioner shall immediately give back

the withheld object to the person from whom it was

withheld.

(3) Where it is decided that the item is subject to

seizure, the Commissioner or the official shall give a

note of seizure with the reason for the forfeiture within

ninety (90) working days from when the item is

withheld, to any person who, according to the opinion of

the Commissioner or the official, was at the time the

seizure was made the owner or owners of the withheld

object, if known.

(4) The seizure note shall be accompanied by a

copy of this article and it shall be deemed to have been

duly given to the interested person

(a) when it is delivered to that person

personally, if known; or

(b) when it is addressed to that person and

is sent to him by registered mail or left at the last

known address of residence or place of business

of that person, or in the case of a body corporate

in its registered or main office and in this case the

date of the seizure note shall be the date when the

registered post is delivered; or

(c) where that person does not have a

known address in Malta or Gozo, when a notice is

published in the Government Gazette declaring

that the seizure note has been issued. The date of

the seizure note in this case shall be the date of

publication of the notice in the Government

Gazette.

(5) The objects seized under this Ordinance shall

be deemed to be forfeited by virtue of the law and may

be disposed of according to law, unless the person from

whom the objects have been seized, or the owner, or

any person authorised by him, within thirty (30) days

from the date of the seizure note, gives a notice in

writing to the Commissioner, requesting that the seized

goods are returned to him or indicating that he intends

to demand that they are returned, and within thirty (30)

days from that notice, initiates the necessary

proceedings before the Administrative Review Tribunal

by means of an application against the Commissioner,

who shall have thirty (30) days from the notification to

reply. In default of such, the claim on this object shall

be deemed to be abandoned. The Tribunal shall hear the

application expeditiously.

(6) When seized goods in accordance with this

article is a ship or is of a perishable nature or is, in the

o p i n i o n o f t h e C o m m i s s i o n e r, l i k e l y t o s u ff e r

substantial loss of value by the lapse of time, or consists

of a living creature, the same goods may, by direction of

the Commissioner, be sold immediately, and the

proceeds thereof be retained to abide the results of any

claim that may be legally made in respect thereof and

for the purpose of any proceedings taken under this

Ordinance in respect of the seized goods, such proceeds

shall represent and substitute the said seized goods.

(7) Where a seizure made in accordance with this

article is contested in accordance with sub-article (5),

the Commissioner may, at any time, if he sees fit and

notwithstanding the pendency of the proceedings

wherein the seizure is contested, deliver any object

seized to any claimant upon his paying to the

Commissioner such sum as the Commissioner thinks

proper, and not exceeding that which in the opinion of

the Commissioner represents the value of the object,

including any duty and tax which shall be paid on it and

which have not been paid, or upon giving to the

Commissioner such security acceptable to the said

Commissioner for the payment of such sum. Such sum

or such security, as the case may be, shall be retained to

abide the result of any claim that may be legally made

in respect thereof and shall, for the purpose of any

proceedings taken under this Ordinance in respect of

the seized goods, represent and substitute the said

seized goods.".

Article 91 of the Ordinance shall be amended by the

(a) in paragraph (c) thereof, the words "sale by call for

tenders" shall be substituted by the words "sale by call for

offers"; and

(b) in the proviso to paragraph (c) thereof, the words

"sale by a call for tenders" shall be substituted by the words "sale

by call for offers".

Immediately after article 91 of the Ordinance there shall be

added the following new article

92. The Commissioner may require a sworn

"Ulterior proof.

declaration to serve as proof in the absence of more

specific Customs documents or to serve as ulterior proof

after all the required documentation has been provided.".

PART III

AMENDMENT TO THE INCOME TAX ACT

(1)This Part amends the Income Tax Act and it shall be read Amendment to

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

Act.

referred to as "the principal Act".

(2) The article amending article 14E of the principal Act, the article

amending article 14G of the principal Act and the article amending

article 31F of the principal Act shall be deemed to have come into force

as from the year of assessment 2024.

In paragraph (b) of article 14E of the principal Act, the words Amendment of

''one hundred euro'' shall be substituted by the words ''three hundred euro article

the principal

(€300)''.

Act.

In paragraph (b) of article 14G of the principal Act, the words Amendment of

''one hundred euro (€100)'' shall be substituted by the words ''three article

the principal

hundred euro (€300)''.

Act.

In article 27A of the principal Act, the words ''transfer of Amendment of

assets between companies'' shall be substituted by the words ''transfer article

the principal

of assets between companies, a transfer between a company and a Act.

person who is related to it in such manner as may be prescribed''.

Sub-article (2) of article 31F of the principal Act shall be Amendment of

article 31F of

substituted by the following new sub-article

the principal

Act.

''(2) The tax on the royalties to which this article applies

shall be chargeable, at the option of the individual who derives

those royalties

(a) when the royalties were derived before the 1st

January 2023, at the rate of fifteen cents (€0.15) on every

euro of the gross amount of the royalties; and

(b) when the royalties were derived on or after 1st

January 2023, at the rate of seven point five percent (7.5%)

of the gross amount of the royalties,

and such tax shall be final and no set-off or refund shall be

granted to any person in respect of the tax so charged.''.

PART IV

AMENDMENTS TO THE SOCIAL SECURITY ACT

This Part amends the Social Security Act and it shall be read

and construed as one with the Social Security Act, hereinafter in this

Part referred to as "the principal Act".

Article 16 of the principal Act shall be amended by the

following

(a) in paragraph (f) of sub-article (2) thereof, the words

"until they reach pension age." shall be substituted by the words

"until they reach pension age;" and immediately thereafter there

shall be added the following new paragraph

"(g) a person born on the 1st January 1962 or after,

who did not engage in any gainful occupation between the

age of eighteen (18) years and thirty (30) years and proves

to the satisfaction of the Director that during this period he

has been undergoing regular treatment by a psychiatrist

who is or was consultant in Government employment, the

sum total of such credited contributions that may be

awarded for such period, which shall not exceed one

hundred and four (104) contributions.";

(b) in sub-paragraph (ii) of paragraph (a) of sub-article

(3) thereof, the words "20 contributions" shall be substituted by

the words "fifteen (15) contributions"; and

(c) in paragraph (a) of sub-article (3) thereof, the words

"who fail to satisfy the conditions of Part IV of the Second

Schedule of this Act but fulfil the criteria stipulated by the

provisions of article 106(a);" shall be substituted by the words

"who fail to satisfy the conditions of Part IV of the Second

Schedule but fulfil the criteria stipulated by the provisions of

article 106(a):" and immediately after there shall be added the

following new proviso

"Provided that, notwithstanding the provisions of this

sub-article, with effect from 1st January 2023, a person entitled

to a Carers Allowance or an Increased Carers Allowance in

accordance with the provisions of article 68 and who fails to

satisfy the conditions mentioned in this sub-article, shall be

entitled to a total of two hundred and eight (208) credited

contributions;".

In the first proviso to sub-article (1) of article 18 of the

principal Act the words "Provided that in any uninterrupted period of

incapacity for work" shall be substituted by the words "Provided

further that in any uninterrupted period of incapacity for work" and

immediately before this proviso, as amended, immediately after the

words "age of 23:" of sub-article (1) thereof, there shall be added the

following new proviso

"Provided that and notwithstanding the provisions of

article 90, with effect from 1st January 2023, the provisions of

this article shall also apply to a widow who is in receipt of a

Pension under Part IV of this Act, who is in an insurable

employment, and who has not yet reached pension age:".

In the first proviso to sub-article (1) of article 28 of the Amendment of

principal Act the words "due to the nature of his work:" shall be article

principal Act.

substituted by the words "due to the nature of his work:" and

immediately thereafter, there shall be added the following new

proviso

"Provided that and notwithstanding the provisions of

article 90, with effect from 1st January 2023, the provisions of

this article shall also apply to a widow who is in receipt of a

Pension under Part IV of this Act, who is in an insurable

employment, and who has not yet reached pension age:".

Article 30 of the principal Act shall be amended by the Amendment of

article 30 of the

following

principal Act.

(a) in paragraph (iv) of the proviso to sub-article (1)

thereof, the words "the Ministry responsible for Employment."

shall be substituted by the words "the Ministry responsible for

Employment:" and immediately thereafter, there shall be added

the following new proviso

"Provided further that and notwithstanding the

provisions of article 90, with effect from 1st January 2023,

the provisions of this article shall also apply to a widow

who is in receipt of a pension under Part IV of this Act,

who is in an insurable employment, and who has not yet

reached pension age;";

(b) in the second proviso to sub-paragraph (vii) of

paragraph (b) of sub-article (6) thereof, the words "maximum of

three years." shall be substituted by the words "maximum of

three (3) years:" and immediately thereafter there shall be added

the following new proviso

"Provided further that notwithstanding the provisions

of this sub-paragraph, with effect from 1st January 2023 when a

person, who has been in receipt of Social Assistance for more

than one (1) year in the three (3) years preceding the claim, and

partakes in insurable employment, the entitlement for Social

Assistance shall not cease immediately, however that person

shall still be entitled to seventy-five percent (75%) of the rate

applicable for the first (1) year, to fifty-five percent (55%) of the

rate applicable for the second (2) year and thirty-five percent

(35%) of the rate applicable for the third (3) year. The employer

shall be entitled to twenty-five percent (25%) of the rate

applicable for every year for a maximum of three (3) years;"; and

(c) in the proviso to sub-paragraph (viii) of paragraph (b)

of sub-article (6) thereof, the words "rate applicable for the third

year." shall be substituted by the words "rate applicable for the

third (3) year:" and immediately after there shall be added the

following new proviso

"Provided further that notwithstanding the

provisions of this sub-paragraph, with effect from 1st

January 2023, a person who is has been in receipt of

Social Assistance for more than one (1) year in the

three (3) years preceding the claim and who contracts a

marriage or a civil union or a cohabitation in

accordance with the terms and provisions of the

Cohabitation Act with a person engaged in an insurable

employment, the entitlement for Social Assistance shall

not cease immediately, however that person shall be

entitled to seventy-five percent (75%) of the rate

applicable for the first (1) year, to fifty-five percent

(55%) of the rate applicable for the second (2) year and

to thirty-five percent (35%) of the rate applicable for

the third (3) year.".

Article 68 of the principal Act shall be amended by the

following

(a) in paragraph (a) of sub-article (1) thereof,

immediately after the words "a single person or a married

person" there shall be added the following new words

"or a person who proves to the satisfaction of the

Director, by providing the necessary documentation, that

they have been cohabiting in similar circumstances to

marriage, civil union or registered cohabitation for at least

ten (10) years immediately prior to the application and that

such cohabitation was not registered due to pending legal

proceedings";

(b) in paragraph (b) of sub-article (1) thereof,

immediately after the words "a single or a married person" there

shall be added the following new words

"or a person who proves to the satisfaction of the

Director, by providing the necessary documentation, that

they have been cohabiting in similar circumstances to

marriage, civil union or registered cohabitation for at least

ten (10) years immediately prior to the application and that

such cohabitation was not registered due to pending legal

proceedings";

(c) immediately after paragraph (e) of sub-article (1)

thereof there shall be added the following new paragraph (f)

"(f) Subject to the provisions of this Act, with effect

from 1st January 2023, a parent who is not in employment

or self-occupation and has not yet reached pensionable age

and who proves to the satisfaction of the Director that he is

a citizen of Malta or of a country of the European Union

and is permanently residing in Malta, shall be entitled to a

Carer’s Grant equivalent to fifty percent (50%) of the net

National Minimum Wage annually, where such parent

proves to the satisfaction of the Director that he is taking

care, all by himself, on a full-time basis and regularly of a

child who is in receipt of or children who are in receipt of

the Increased Severe Disability Assistance, under the

provisions of this Act."; and

(d) in the proviso to paragraph (b) of sub-article (2)

thereof, the words "as Social Assistance." shall be substituted by

the words "as Social Assistance:", and immediately after there

shall be added the following new proviso

"Provided further and without prejudice to the

provisions of article 90, with effect from 1st January 2023,

where a person is in receipt of Social Assistance in

accordance with the provisions of article 30, and ceases to

be so entitled due to becoming entitled to a Carer’s

Allowance because he goes to live with any one (1) of the

persons mentioned in sub-article 1(b) to care for said

person, such person shall still be entitled to the payment of

the difference in rate between the Social Assistance which

he was receiving and the Carers Allowance which he

becomes entitled to receive, if the rate of the Carers

Allowance is lower.".

In article 76A of the principal Act, the words "no allowance

under article 76 shall be payable." shall be substituted by the words

"no allowance under article 76 shall be payable:", and immediately

after there shall be added the following new proviso

"Provided that subject to the provisions of this

Act, and with effect from 1st January 2023, it shall be

the right of every child who is certified by a competent

authority as a fostered child, to have an allowance paid

in his respect to the head of household who is an

approved foster carer in accordance with the Minor

Protection (Alternative Care) Act, even when said child

is not a fostered child anymore because he is adopted

by that same head of household, at the rates specified in

Part VIII of the Fourteenth Schedule to this Act.".

Immediately after sub-article (8) of article 85 of the principal

Act, there shall be added the following new sub-article (8A)

"(8A) Notwithstanding the provisions of sub-articles (4),

(5), (6), (7) and (8), with effect from 1st January 2023, the rate

due to persons who have reached pension age according to the

definition ''pension age'' in article 2, who have retired from

employment and who shall not be entitled to a Contributory

Pension, and however have paid between fifty (50) and two

hundred and fifty-nine (259) social security contributions shall

be four hundred and fifty euro (€450) per year, whereas the rate

due to persons who have reached pension age according to the

definition ''pension age'' in article 2, who have retired from

employment and who shall not be entitled to a Contributory

Pension, and however have paid at least two hundred and sixty

(260) social security contributions shall be five hundred and fifty

euro (€550) per year.".

The fourth proviso to sub-article (5) of article 116 of the

principal Act, shall be substituted by the following new proviso

"Provided further that, such option may also be

granted to a person who has attained the age of fifty-nine (59)

years and is in receipt of an Invalidity Pension in accordance

with the provisions of article 26 or is in receipt of a Carers

Allowance or Increased Carers Allowance in accordance with

the provisions of article 68 when the claim is made:".

PART V

AMENDMENTS TO THE MOTOR VEHICLES

REGISTRATION AND LICENSING ACT

(1) This Part amends the Motor Vehicles Registration and Amendments to

Licensing Act and it shall be read and construed as one with the the

Vehicles

Motor Vehicles Registration and Licensing Act, hereinafter in this Registration

Licensing Act.

Part referred to as "the principal Act".

(2) All the provisions of this Part shall be deemed to have come

into force on the 1 st January, 2024.

Article 2 of the principal Act shall be amended by the Amendment of

article 2 of the

following

principal Act.

(a) the definition "brought into Malta" shall be

substituted by the following new definition

" "brought into Malta" means the entry into Malta of

a motor vehicle coming from

(a)

a Member State,

(b)

the Channel Islands (Guernsey and

Jersey),

(c)

the Isle of Man,

(d)

Monaco,

(e)

Andorra,

(f)

San Marino, or

(g)

Northern Ireland,

and which was put into free circulation in such Member

State, or in the Channel Islands, or in the Isle of Man, or in

Monaco, or in Andorra, or in San Marino, or in Northern

Ireland as the case may be, prior to entry into Malta;";

(b) in the definition "plug-in hybrid electric vehicle"

thereof the words "30km" shall be substituted by the words "fifty

(50) km"; and

(c) in the definition "range extender electric vehicle"

thereof the words "40km" shall be substituted by the words "fifty

(50) km".

Immediately after sub-article (1) of article 3 of the principal

Act, there shall be added the following new sub-articles

''(1A) As from the 1 st January 2024 and thereafter, the

registered owner of an M1 motor vehicle originally registered in

any country other than a third country prior to the 1st January

2009 and which was subsequently registered in Malta after such

date and is still licensed and for which the registration tax and

annual circulation licence fee imposed were in accordance to the

Second Schedule, Category A and the Fourth Schedule, Category

1A, shall have the right to shift the registration tax and annual

circulation tax regimes as explained below

Provided that, upon exercising the right to pay the

registration tax and annual circulation licence fee leviable in

terms of the Second Schedule, Category AAA for registration tax

and Fourth Schedule, Category 2 for the annual circulation

licence fee instead of that leviable in terms of the paragraphs of

the Second Schedule, Category A and the Fourth Schedule,

Category 1A, such person shall be obliged to receive a refund

from the Authority in credit for any difference which there may

be between the sum total of registration tax and annual

circulation licence fees payable up to such date calculated in

terms of the paragraphs of the Second Schedule, Category AAA

for registration tax and the Fourth Schedule, Category 2 for the

annual circulation licence fee and the sum total of registration

tax and annual circulation licence fees payable up to such date

calculated in terms of the paragraphs of the Second Schedule,

Category A and the Fourth Schedule, Category 1A.

(1B) The owner who decides to exercise his right in terms

of sub-article (1A) shall be obliged to receive a credit on that

particular licensed vehicle which shall be deducted from the

annual circulation licence, if any, and this between the difference

of the total sums of registration tax and annual circulation

licence fees calculated in the manner established in the proviso

to sub-article (1A) contemporaneously with the exercise of such

right and the payment, for the first time, of the circulation

licence fee in terms of the Fourth Schedule, Category 2.

(1C) As from the 1 st January 2024 and thereafter the

registered owner of a motorcycle originally registered in any

country other than a third country prior to the 1st January 2009

and which was subsequently registered in Malta after such date

and is still licensed and for which the registration tax and annual

circulation licence fee leviable were in accordance to the Second

Schedule, Category C and the Fourth Schedule, Category 3, shall

have the right to shift the registration tax and annual circulation

tax regimes as explained below

Provided that upon exercising the right to pay the

registration tax and annual circulation licence fee leviable in

terms of the Second Schedule, Category CC for registration tax

and the Fourth Schedule, Category 4 for the annual circulation

licence fee and instead of that leviable in terms of paragraphs of

the Second Schedule, Category C and the Fourth Schedule,

Category 3 such person shall be obliged to receive a refund from

the Authority in credit for any difference which there might be

between the sum total of registration tax and annual circulation

licence fees payable up to such date calculated in terms of the

paragraphs of the Second Schedule, Category CC for registration

tax and the Fourth Schedule, Category 4 for the annual

circulation licence fee and the sum total of registration tax and

annual circulation licence fees payable up to such date calculated

in terms of the paragraphs of the Second Schedule, Category C

and the Fourth Schedule, Category 3.

(1D) The owner who decides to exercise his right in terms

of sub-article (1A) shall be obliged to receive a credit on that

particular licensed vehicle which shall be deducted from the

annual circulation licence, if any, and this between the difference

of the total sums of registration tax and annual circulation

licence fees calculated in the manner established in the proviso

to sub-article (1A) contemporaneously with the exercise of such

right and the payment, for the first time, of the circulation

licence fee in terms of the Fourth Schedule, Category 4.''.

In sub-article (7) of article 8 of the principal Act, the words Amendment of

"at the time of valuation." shall be substituted by the words "at the article

principal Act.

time of valuation:" and immediately thereafter there shall be added the

following new proviso

"Provided that, in such cases where the registration

value of the motor vehicle in question is higher than the

registration value used for the purposes of calculating the

registration tax payable when the said motor vehicle was first

registered, the registration value used during first registration

shall apply for the purpose of calculating the difference in the

registration tax payable.".

The Second Schedule to the principal Act shall be amended Amendment of

the Second

by the following

Schedule to the

principal Act.

(a)

immediately after the paragraph ending with the

words ''its equivalent euro standard.'' in item ''Category AA''

thereof there shall be added the following new item

''Category AAA: M1 motor vehicles registered prior

to the 1st January, 2009 in any country other than a third

country and then brought into and registered in Malta on or

after the 1st January, 2009

M1 Motor Vehicles

Engine Capacity

Rate of Tax

Percentage of RV

Up to and including 1000cc

5%

More than 1000cc up to and including

50.5%

1300cc

More than 1300cc up to and including

53%

1500cc

More than 1500cc up to and including

60%

1800cc

More than 1800cc up to and including

65%

2000cc

More than 2000cc up to and including

75%

2500cc

More than 2500cc up to and including

75%

3000cc

More than 3000cc

75%

'';

(b) item ''Category B'' thereof shall be amended by the

following

(i) the words from ''Used category M1 vehicles''

till the words ''in terms of article 6(2):'' thereof shall be

substituted by the words ''Category B: Used category M1

vehicles (including autogas and hybrid motor vehicles)

imported from third countries in terms of article 6(2):''; and

(ii) the words ''* The vehicle’s age is the age of a

vehicle from year of manufacture.'' immediately after the

table thereof shall be substituted by the words ''* The

vehicle’s age is the age of a vehicle from date of

registration in the other country.'';

(c) immediately after the last table of the item ''Category

C'' thereof there shall be added the following new items

''Category CC: motorcycles registered prior to the 1st

January, 2009 in any country other than a third country

brought into and registered in Malta on or after the 1st

January, 2009

Motorcycles

Engine Capacity

Rate of Tax

Percentage of RV

Up to and including 50cc

28.5%

More than 50cc up to and including

28.5%

125cc

More than 125cc up to and including

42%

250cc

More than 250cc up to and including

42%

500cc

More than 500cc up to and including

42%

800cc

More than 800cc

42%

Category CCC: used motorcycles registered prior to

the 1st January, 2009 in any country other than a third

country brought into and registered in Malta on or after the

1st January, 2009

Motorcycles

Engine Capacity

€

Up to and including 50cc

5,000

More than 50cc up to and including

10,000

125cc

More than 125cc up to and including

12,000

250cc

More than 250cc up to and including

14,000

500cc

More than 500cc up to and including

16,000

800cc

More than 800cc

20,000

*The vehicle’s age is the age of a vehicle from the date of registration in the

other country "; and

(d) in sub-item (3) of item "Category D" thereof the

words "0.05g/km" shall be substituted by the words "0.35g/km".

37. The Fourth Schedule to the principal Act shall be amended by Amendment of

the Fourth

the following

Schedule to the

principal Act.

(a) in the third indent thereof the word "manufacture"

shall be substituted by the word "registration"; and

(b) in item 2 thereof the words "registered on the 1st

January, 2009" shall be substituted by the words "registered

before the 1st January, 2009".

PART VI

AMENDMENTS TO THE INCOME TAX MANAGEMENT ACT

38. (1) This Part amends the Income Tax Management Act and it

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

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

(2) The article amending article 44 of the principal Act, the

article amending article 45 of the principal Act and paragraph (a) of

the article amending article 48 of the principal Act shall be deemed to

have come into force as from 1 June 2022.

39. Article 43 of the principal Act shall be amended by the

following

(a) the second and third provisos to paragraph (b) of sub-

article (1) thereof shall be substituted by the following new

provisos

''Provided further that in the case of a transfer

of securities, as defined in article 5 of the Income

Tax Act, involving a transfer of a controlling

interest in accordance with prescribed rules, or a

transfer of an interest in a partnership, as defined

in article 5(1)(a)(v)(a) of the Income Tax Act, the

provisional tax payment shall be equivalent to

seven percent (7%) of the higher of the market

value and the consideration, and in the case of a

transfer to which article 5(9A) of the Income Tax

Act applies, such payment shall be made within

fifteen (15) days from the date the chargeable

company ceases to be a member of the group

Provided further that in the case of a transfer of

value in securities, as provided for in article

5(13)(b)(ii) of the Income Tax Act, or a deemed

transfer of an interest in a partnership, as provided

for in article 5(1)(a)(v) of the Income Tax Act, the

provisional tax payment shall be equivalent to

seven percent (7%) of the gains or profits referred

to in the said sub-articles, as applicable:''; and

(b)

the proviso to sub-article (3) shall be substituted by

the following new proviso

''Provided that in the case of a transfer of

securities, as defined in article 5 of the Income Tax

Act, involving a transfer of a controlling interest in

accordance with prescribed rules, or of a transfer

of an interest in a partnership, as defined in article

5(1)(a)(v)(a) of the Income Tax Act, the twenty

percent (20%) shall be calculated on the higher of

the market value and the consideration.''.

40. In the second proviso to paragraph (a) of sub-article (2A) of Amendment of

article 44 of the principal Act, the words "the amount of the said tax;" article

principal Act.

shall be substituted by the words "the amount of the said tax:" and

immediately thereafter there shall be added the following new proviso

"Provided further that when the date by which the tax

shall be payable in terms of the relevant provisions of the Income

Tax Acts is the 31 August 2022 or a later date, interest shall be

charged at the rate of zero point six percent (0.6%) for every

month or part thereof during which the tax remains unpaid or at

such other rate as the Minister may, from time to time, prescribe

by rules and the total interest shall not exceed the amount of the

said tax;".

41. In the proviso to article 45 of the principal Act, the words Amendment of

"interest on the said tax shall be computed and due in accordance with article

principal Act.

the provisions of article 44(2A) as from the relevant tax settlement

date up to the date of payment" shall be substituted by the words "for

the purposes of article 44(2A) the said tax shall be treated as tax that

was payable by not later than the relevant tax settlement date".

42. Article 48 of the principal Act shall be amended by the Amendment of

article 48 of the

following

principal Act.

(a) in the second proviso to sub-article (2D) thereof, the

words "the amount of the said repayment." shall be substituted

by the words "the amount of the said repayment:" and

immediately thereafter there shall be added the following new

proviso

"Provided further that for any period or part

thereof commencing on or after 1 September 2022, interest

shall be calculated at the rate of zero point six percent

(0.6%) or at such other rate as may be prescribed, and the

total amount of interest shall not exceed the amount of the

said repayment."; and

(b) in sub-article (8) thereof, the words "and shall be

recoverable as such." shall be substituted by the words "and shall

be recoverable as such:" and immediately thereafter there shall

be added the following new proviso

"Provided that the said period of fourteen (14) days

may be extended by another period of twelve (12) months if the

Commissioner requires to carry out further verifications for due

diligence purposes.".

PART VII

AMENDMENTS TO THE EXCISE DUTY ACT

43. This Part amends the Excise Duty Act and it shall be read and

construed as one with the Excise Duty Act, hereinafter in this Part

referred to as "the principal Act".

44. In the definition "duty suspension arrangement" of article 2 of

the principal Act, the words "holding or movement" shall be

substituted by the words "holding, storage or movement".

45. Article 8 of the principal Act shall be amended by the

following

(a) paragraph (b) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(b) in relation to the holding or storage of excisable

goods outside a duty suspension arrangement where the

excise duty has not been levied pursuant to the applicable

provisions of this Act, by the person holding or storing the

excisable goods and any other person involved in the

holding or storing of the excisable goods;"; and

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

following new sub-article

"(3) The prescriptive time period for the

Commissioner to notify the debtor with a final decision as

provided for in this Act or to initiate judicial proceedings in

any other way against him shall be of six (6) years from the

date when the excise duty becomes payable as provided for

in this Act.".

46. Article 9 of the principal Act shall be amended by the

following

(a)

in sub-article (1) thereof the words "processing and

holding of products" shall be substituted by the words

"processing, holding and storage of products"; and

(b) in sub-article (2) thereof the words "processing and

holding of products" shall be substituted by the words

"processing, holding and storage of products".

47. In paragraph (a) of sub-article (1) of article 10 of the principal Amendment of

Act, the words "processing and holding and a compulsory guarantee" article

principal Act.

shall be substituted by the words "processing, holding, storage and a

compulsory guarantee".

48. In paragraph (t) of sub-article (1) of article 16 of the principal Amendment of

Act, the words "of the Commissioner," shall be substituted by the article

principal Act.

words "of the Commissioner; or", and immediately thereafter there

shall be added the following new paragraphs

"(u) comes into possession of excisable goods or excise

stamps or bands in breach of the law; or

(v) fails to register himself with the Commissioner, or

his business or the property which he manages, in breach of this

Act or its subsidiary laws,".

49. Immediately after article 16B of the principal Act there shall Addition of new

article 16C to

be added the following new article

the principal

Act.

" When an object is

16C. When an object is forfeited in accordance with

an article of customs legislation, the duty and taxes due

on the forfeited object shall not be collected.".

50. Article 17 of the principal Act shall be amended by the Amendment of

article 17 of the

principal Act.

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

following new sub-article

"(3)(a) With regard to any vessel of or exceeding two

hundred and fifty (250) tons burden, the Commissioner

may, in any case in which, in his opinion, any

responsible officer of such vessel is implicated, either

actually or by neglect, proceed in the manner prescribed

by article 36, and without prejudice to any appeal as laid

down in that article, for condemnation of the said vessel

to the amount mentioned in paragraph (b). For this

purpose, the Commissioner may require, as to any vessel

referred to in this sub-article, the deposit in his hands of

this amount as guarantee to abide by the decision of the

court, and in default of payment of such deposit, the

Commissioner may detain such vessel.

(b) The amount mentioned in paragraph (a) shall

be of

(i) half a million euro (€500,000) for

vessels between two hundred fifty (250) and

nine thousand, nine hundred and ninety-nine

(9,999) tons burden;

(ii) six hundred thousand euro

(€600,000) for vessels between ten thousand

(10,000) and nineteen thousand, nine

hundred and ninety-nine (19,999) tons

burden;

(iii) seven hundred thousand euro

(€700,000) for vessels between twenty

thousand (20,000) and twenty-nine thousand,

nine hundred and ninety-nine (29,999) tons

burden;

(iv) eight hundred thousand euro

(€800,000) for vessels between thirty

thousand (30,000) and thirty-nine thousand,

nine hundred and ninety-nine (39,999) tons

burden;

(v) nine hundred thousand euro

(€900,000) for vessels between forty

thousand (40,000) and forty-nine thousand,

nine hundred and ninety-nine (49,999) tons

burden;

(vi) one million euro (€1,000,000) for

vessels between fifty thousand (50,000) and

fifty-nine thousand, nine hundred and ninety-

nine (59,999) tons burden;

(vii) one million, one hundred

thousand euro (€1,100,000) for vessels

between sixty thousand (60,000) and sixty-

nine thousand, nine hundred and ninety-nine

(69,999) tons burden;

(viii) one million, two hundred

thousand euro (€1,200,000) for vessels

between seventy thousand (70,000) and

seventy-nine thousand, nine hundred and

ninety-nine (79,999) tons burden; or

(ix) one million, three hundred

thousand euro (€1,300,000) for vessels of

eighty thousand (80,000) tons burden or

more.";

(b) immediately after sub-article (7) thereof there shall

be added the following new sub-article

"(8) Any quantity of excise bands or stamps that are

found in the possession of a person in violation of the

provisions of this Act shall, without prejudice to any other

punishment under this Act or another law, be forfeited in

favour of the Government.".

Articles 27 and 28 of the principal Act shall be substituted by Substitution of

articles 27 and

the following new articles

28 of the

principal Act.

27. (1) Whenever goods are withheld under this

goods are withheld.

Act, the official who does the withholding shall issue a

receipt for withheld goods to the person from whom the

goods were taken or else the receipt for withheld goods

shall be affixed to the place from where the goods were

withheld.

(2) Where within a period of ninety (90) working

days from when the goods were withheld the

Commissioner decides that the goods are not subject to

seizure or if he fails to take a decision regarding those

goods, the Commissioner shall immediately give back

the withheld goods to the person from whom they were

withheld.

(3) Where it is decided that the object is subject to

seizure, the Commissioner or the official shall give a

seizure note containing the reasons for the seizure

within ninety (90) working days from when the goods

were withheld to every person who, in the opinion of the

Commissioner or the official, was at the time of seizure,

the owner or owners of the goods seized, if such were

known.

(4) The seizure note shall be accompanied by a

copy of this article and it shall be deemed to have been

duly given to the interested person

(a) when it is delivered to that person

personally, if known; or

(b) when it is addressed to that person and

is sent to him by registered mail or left at the last

known address of his residence or place of

business of that person, or in the case of a body

corporate at its registered or main office and in

this case the date of the seizure note shall be the

date when the registered post is delivered; or

(c) where that person does not have a

known address in Malta or Gozo, when a notice is

published in the Government Gazette declaring

that the seizure note has been issued. The date of

the seizure note in this case shall be the date of

publication of the notice in the Government

Gazette.

28. (1) The goods seized under this Act shall be

deemed to be forfeited by virtue of the law itself and

may be disposed of according to law, unless the person

from whom the goods have been seized, or the owner, or

any person authorised by him, within thirty (30) days

from the date of the seizure note, gives a notice in

writing to the Commissioner, requesting that the seized

goods are returned to him or indicating that he intends

to demand that they are returned, and within thirty (30)

days from that notice, initiates the necessary

proceedings before the Administrative Review Tribunal

by means of an application against the Commissioner,

who shall have thirty (30) days from the notification to

reply. In default of such, the claim on this object shall

be deemed to be abandoned. The Tribunal shall hear the

application expeditiously.

(2) When the object seized by virtue of this Act is a

vessel or is of a perishable nature or is, in the opinion of

the Commissioner, likely to suffer substantial loss of

value by the lapse of time, or consists of a living

creature, the same object may, by order of the

Commissioner, be sold, and the proceeds thereof be

retained to abide the results of any claim that may be

legally made in respect thereof and for the purpose of

any proceedings taken under this Act in respect of the

seized goods, such proceeds shall represent and

substitute the said seized goods.

(3) When a seizure made in accordance with this

Act is contested in accordance with sub-article (1), the

Commissioner may, at anytime, if he sees fit and

notwithstanding the pendency of the proceedings

wherein the seizure is contested, deliver any goods

seized to any claimant upon his paying to the

Commissioner such sum as the Commissioner thinks

proper and not exceeding that which in the opinion of

the Commissioner represents the value of the goods,

including any duty, levy or tax chargeable thereon and

which have not been paid, or upon giving to the

Commissioner such security acceptable to the said

Commissioner for the payment of such sum. Such sum

or security, as the case may be, shall be retained to abide

the result of any claim that may be legally made in

respect thereof and shall, for the purpose of any

proceedings taken under this Act in respect of the seized

goods, represent and substitute the said seized goods.".

52 Article 29 of the principal Act shall be amended by the Amendment of

article 29 of the

principal Act.

(a) in paragraph (c) of sub-article (5) thereof, the words

"sale by call for tenders" shall be substituted by the words "sale

by call for offers"; and

(b) in the proviso to paragraph (c) of sub-article (5)

thereof, the words "sale by call for tenders" shall be substituted by

the words "sale by call for offers".

Fil-verżjoni bl-Ingliż, l-artikolu 29 tal-Att prinċipali għandu Emenda tal-

artikolu 29 tal-

jiġi emendat b’dan li ġej

Att prinċipali.

(a) fil-paragrafu (ċ) tas-subartikolu (5) tiegħu, il-kliem

"sale by call for tenders" għandhom jiġu sostitwiti bil-kliem

"sale by call for offers"; u

(b) fil-proviso għall-paragrafu (ċ) tas-subartikolu (5)

tiegħu, il-kliem "sale by call for tenders" għandhom jiġu sostitwiti

bil-kliem "sale by call for offers".

Articles 30, 31, 32 and 33 of the principal Act shall be Substitution of

articles 30, 31,

substituted by the following new articles

32 and 33 of the

principal Act.

30. (1) When the Customs official deems that

there is any sort of discrepancy in the information given

to Customs and, or in relation to the goods arriving in

Malta which may lead to a difference between the

amount of duty paid and that which is due, or is going

to take any other decision in relation to an economic

operator which shall affect him negatively, the official

shall communicate in writing to the economic operator

the grounds on which he intends to base his decision

and give him thirty (30) days from this communication

during which the economic operator may exercise his

right to be heard by the Commissioner, in written form.

This period of time may be extended to up to sixty (60)

days where the Commissioner deems it appropriate,

upon the request of the economic operator.

(2) When the period of time to be heard given to the

economic operator is over, the Commissioner shall send

a final decision in writing to the economic operator,

stating where applicable, the amount of duty due.

(3) The final decision shall be sent to the economic

operator by registered mail at the address given by the

economic operator or at the address tied to the value

added tax registration number. The decision shall state

that it is a final decision, shall state the reasons for the

decision and shall give the economic operator ten (10)

days from the date of the final decision to pay or to state

in writing that he disagrees with the Commissioner with

regards to the amount due or on the decision taken.

31. Where the economic operator disagrees with

the final decision of the Commissioner, he has thirty

(30) days from the end of the ten (10) day period

specified in article 30(3) to commence proceedings

against the Commissioner in the Administrative Review

Tribunal by means of an application demanding that the

decision is unfounded, and the Commissioner shall

have thirty (30) days from notification in which to file a

reply. In default of the written statement provided for in

article 30 and the application provided for in this

article, the final decision shall constitute an executive

title in accordance with and for the purposes of Title

VII of Part I of Book Second of the Code of

Organization and Civil Procedure.

32. When the notification of the final decision by

Gazette where the registered mail is not successful because the economic

trader is not found.

operator may not be found or because of other reasons

attributable to him, the Commissioner shall publish a

notice in the Government Gazette where he states that a

final decision has been issued and in that notice he

invites the economic operator to collect it from the

Department within thirty (30) days from publication of

that notice. The economic operator shall be deemed to be

notified with the final decision at the end of this period.

The economic operator shall have ten (10) days from the

notification to pay or to state in writing that he disagrees

with the Commissioner regarding the amount due or the

decision taken, and if he disagrees, he shall have thirty

(30) days from the end of the ten (10) day period to

commence proceedings against the Commissioner before

the Administrative Review Tribunal by means of an

application, demanding that the Tribunal declares that

the claim of the Commissioner is unfounded, and the

Commissioner shall have the right to file a reply within

thirty (30) days from notification. In default of the

written statement and the application provided for in this

article, the final decision shall constitute an executive

title in accordance with and for the purposes of Title VII

of Part I of Book Second of the Code of Organization

and Civil Procedure.

33. (1) The proceedings before the Tribunal

relating to an amount of duty due to the Commissioner

after a final decision shall be cancelled from the list on

the first hearing unless a guarantee acceptable to the

Commissioner equivalent to the duty due, excluding

value added tax, is presented. The guarantee shall be kept

by the Commissioner until final judgement and shall be

withheld or returned according to the judgement of the

Tribunal

Provided that the Tribunal may order that the

guarantee shall not be given by the applicant, where it

is proven that the giving of a guarantee would cause the

applicant serious economic or social difficulties. These

difficulties shall be proven by the applicant by means of

adequate and relevant documentation, which shall

include, according to circumstances, the last three (3)

audited financial statements, the financial report for the

current year, tax returns, notarial acts, bank accounts or

equivalent documentation.

(2) The provisions of sub-article (1) relating to the

giving of a guarantee shall also apply to proceedings in

the competent court under article 466 of the Code of

Organization and Civil Procedure which shall relate to

duty and taxes due to the Commissioner under any

customs law.

(3) The Tribunal shall expeditiously hear and

decide all cases relating to claims against the

Commissioner.".

Immediately after article 33 of the principal Act there shall be Addition of new

article 33A to

added the following new article 33A

the principal

Act.

33A. When an amount of duty, tax or interest

remains unpaid after ten (10) days from the notification

to the debtor of the amount due, the Commissioner may

immediately take those administrative and procedural

measures necessary, including not giving any customs

service to the debtor until payment is effected, take all

enforcement measures necessary so that payment of the

established amount is effected, as well as take all

measures necessary according to law to enforce the

executive title when it is constituted.".

Immediately after article 39 of the principal Act there shall be

added the following new article 39A

" Ulterior proof.

39A. The Commissioner may require a sworn

declaration to serve as proof in the absence of more

specific customs documents or to serve as ulterior proof

after all the required documentation has been

provided.".

The Sixth Schedule to the principal Act shall be amended by

the following

(a) in sub-regulation (2) of regulation 12 of Part A

thereof, the words "in article 14 of the Act." shall be substituted

by the words "in article 14 of the Act, or from an authorized tax

warehouse to another authorized tax warehouse.";

(b) in paragraph (iii) of regulation 16 of Part A thereof,

the words "stocks kept in the authorised tax warehouse other

than a government authorised tax warehouse and sales, issues or

other deliveries of excisable goods" shall be substituted by the

words "stocks kept in the authorised tax warehouse other than a

government authorised tax warehouse, as well as on sales, issues

or other deliveries of excisable goods";

(c) regulation 12 of Part B thereof shall be amended by

the following

(i) in sub-regulation (1) thereof, the words

"enclosing ethyl alcohol" shall be substituted by the words

"enclosing ethyl alcohol, fermented beverages and

intermediate products";

(ii) in sub-regulation (4) thereof, the words "ethyl

alcohol" shall be substituted by the words "ethyl alcohol,

fermented beverages and intermediate products";

(iii) sub-regulation (6) thereof shall be amended by

the following

(aa) in paragraph (a) thereof, the words "ethyl

alcohol itself shall also take place" shall be

substituted by the words "ethyl alcohol, fermented

beverages and intermediate products shall also take

place"; and

(bb) in paragraph (b) thereof, the words "ethyl

alcohol itself shall also take place" shall be

substituted by the words "ethyl alcohol, fermented

beverages and intermediate products shall also take

place";

(iv) sub-regulation (7) thereof shall be amended by

the following

(aa) in paragraph (a) thereof, the words

"Every authorised tax warehouse keeper who takes

out of the authorised tax warehouse ethyl alcohol on

which" shall be substituted by the words "Every

authorised tax warehouse keeper who takes out of the

authorised tax warehouse ethyl alcohol, fermented

beverages and intermediate products on which" and

the words "ethyl alcohol itself shall also take place"

shall be substituted by the words "ethyl alcohol,

fermented beverages and intermediate products shall

also take place"; and

(bb) in paragraph (b) thereof, the words "to

the ethyl alcohol" shall be substituted by the words

"to the ethyl alcohol, fermented beverages and

intermediate products" and the words "ethyl alcohol

itself shall also take place" shall be substituted by the

words "ethyl alcohol, fermented beverages and

intermediate products shall also take place"; and

(v) in paragraph (b) of sub-regulation (8) thereof,

the words "ethyl alcohol itself shall also take place" shall

be substituted by the words "ethyl alcohol, fermented

beverages and intermediate products shall also take place";

(d) in regulation 13 of Part B thereof, the words "ethyl

alcohol products found in the possession of any person in

contravention to the provisions" shall be substituted by the words

"ethyl alcohol, fermented beverages and intermediate products

found in the possession of any person in contravention to the

provisions";

(e) in the Maltese version, in sub-regulation (3) of

regulation 6 of Part C thereof, the words "mill-kustodju tal-

maħżen awtorizzat" shall be substituted by the words "mill-

kustodju ta’ maħżen tas-sisa awtorizzat";

(f) immediately after sub-regulation (2) of regulation 17

of Part D thereof, there shall be added the following new sub-

regulation (3)

"(3)(a) With effect from the 19th January 2024 the

common fiscal marker provided for by Council Directive

95/60/EC of 27 November 1995 on fiscal marking of gas

oils and kerosene, for the marking of all gas oils falling

within CN codes 2710 19 43, 2710 19 46, 2710 19 47, 2710

19 48, 2710 20 11, 2710 20 16 and 2710 20 19, as well as

of kerosene falling within CN code 2710 19 25, shall be

ACCUTRACE™ PLUS.

(b) The marking level of ACCUTRACE™ PLUS

shall be at least 12.5 milligram per litre and not more

than 18.75 milligram per litre of energy product,

which corresponds to a marking level of at least 9.5

milligram of butoxybenzene per litre and not more

than 14.25 milligram of butoxybenzene per litre of

energy product."; and

(g) in sub-regulation (8) of regulation 5 of Part H

thereof, the words "the Commissioner shall forward the

cancellation message to the warehousekeeper or consignee" shall

be substituted by the words "the Commissioner shall send the

cancellation message to the warehouse keeper or the consignee".

PART VIII

AMENDMENTS TO THE VALUE ADDED TAX ACT

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

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

Part referred to as "the principal Act".

Sub-article (2) of article 38 of the principal Act shall be

substituted by the following new sub-article

"(2) Any person who

(a) being required to furnish a declaration in

terms of sub-article (1) or sub-article (2) of article

30, does not furnish that declaration within the time

laid down in the relevant provisions of this Act shall

be liable to an administrative penalty of ten euro

(€10) for every month or part thereof that elapses

from the date by which the declaration should have

been furnished in accordance with this Act and the

date when it is furnished to the Commissioner

Provided that such administrative

penalty shall in no case exceed one hundred and

twenty euro (€120) for each such declaration; and

(b) being required to furnish a recapitulative

statement in terms of sub-article (3) of article 30,

does not furnish that statement within the time laid

down in the relevant provisions of this Act shall be

liable to an administrative penalty of fifty euro

(€50) for every month or part thereof that elapses

from the date by which the statement should have

been furnished in accordance with this Act and the

date when it is furnished to the Commissioner

Provided that such administrative

penalty shall in no case exceed six hundred euro

(€600) for each such statement; and

(c) being required to furnish any

information in terms of article 55A, does not furnish

that information within the time laid down in the

relevant provisions of this Act shall be liable to an

administrative penalty of fifty euro (€50) for every

month or part thereof that elapses from the date by

which the information should have been furnished

in accordance with this Act and the date when it is

furnished to the Commissioner

Provided that such administrative

penalty shall in no case exceed six hundred euro

(€600) for every time such information is not

provided.".

Immediately after article 55 of the principal Act there shall be Addition of new

added the following new article

55A. Notwithstanding the provisions relating to the

duty of professional secrecy, and anything contained in

any other provision of this Act, the Minister may by

regulations prescribe requirements for any person to

retain and furnish the Commissioner such information as

may be required in order to achieve the objective of

combating VAT fraud.".

PART IX

AMENDMENTS TO THE ARBITER FOR

FINANCIAL SERVICES ACT

This Part amends the Arbiter for Financial Services Act and it

shall be read and construed as one with the Arbiter for Financial

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

Immediately after sub-article (7) of article 25 of the principal

Act, there shall be added the following new sub-article (8)

"(8) The language of the procedure before the Arbiter

shall be either Maltese or English as the Arbiter may determine

in accordance with the particular circumstances of each case.".

PART X

AMENDMENTS TO SUBSIDIARY LEGISLATION

This Part amends various subsidiary legislation and it shall be

read and construed as one with the subsidiary legislation it amends.

The Customs Regulations shall be amended by the following

(a) regulation 35 thereof shall be substituted by the

following new regulation

35. (1) The Commissioner shall decide in all

cases on the staff necessary for the proper protection of

the payment of duty.

(2) The Commissioner may, as and when he deems

fit, before granting any permission for service of

attendance by Customs officials to be given, enter into

an arrangement in writing for the payment of all arrears

due to him for attendance of Customs officials

Provided that where such arrears are being

contested by the economic operator, the Commissioner

may require the payment of a deposit equivalent to the

amount being contested before granting permission for

the service to be given.

(3) When a one time economic operator requests

the service of attendance of Customs officials, he shall

pay a deposit that is based on a calculation of the

amount due for the service so requested at the time.";

and

(b)

regulation 45A thereof shall be substituted by the

following new regulation

45A. (1) (a) When there are any dues that relate

may be taken if the

to payment of attendance of Customs officials, the

Commissioner shall send a notice for payment by

means of a postal letter. Where the dues remain unpaid

he shall send a letter by registered mail in the address

given to him or in the postal address associated with the

value added tax registration number. When the notice

by registered mail reaches the debtor, he shall be

deemed to be notified and the debtor shall have thirty

(30) days to pay or to declare in writing that he does not

agree with the Commissioner on the amount due and

after this, if he disagrees, the debtor shall proceed

against the Commissioner in the competent court,

according to the amount, within thirty (30) days from

his written declaration. In default of such, the notice for

payment by registered post shall constitute an executive

title for all effects and purposes of Title VII of Section I

of the Book Second of the Code of Organisation and

Civil Procedure.

(b) When the notification by registered

post mentioned in paragraph (a) does not take

place for one reason or another, the

Commissioner shall publish a notice in the

Government Gazette where he declares that the

notice for payment has been issued and wherein

he invites the debtor to collect the notice from the

offices of the Customs Department within thirty

(30) days from publication, and at the end of this

period he shall be deemed to be notified, even if

he does not collect the documents from Customs

offices. The debtor shall have thirty (30) days

from notification to pay or to declare in writing

that he disagrees with the amount due, and if he

disagrees with the Commissioner, the debtor shall

within thirty (30) days from the written

declaration file proceedings by means of an

application against the Commissioner in the

competent court according to the amount and the

Commissioner shall have the right to reply within

thirty (30) days from notification. In default of

such, the notice for payment shall constitute an

executive title for all effects and purposes of Title

VII of Section I of the Book Second of the Code

of Organisation and Civil Procedure.

(c) In the proceedings in court provided

for in this sub-regulation, the case shall be heard

expeditiously.

(2) Notwithstanding the provisions of sub-

regulation (1), when the notice for payment is sent to

the address given or to the address assigned to the value

added tax registration number and the amount remains

unpaid, the Commissioner may immediately take those

administrative and procedural measures necessary so

that payment is effected, including not giving any

Customs service to the debtor until payment is effected,

as well as take other measures to enforce the executive

title according to law.".

Paragraph (b) of sub-regulation (10) of regulation 3 of the

Cash Control Regulations shall be substituted by the following new

paragraph

"(b) Any cash deposited in the Depository shall be kept

there for a period which shall not exceed thirty (30) days from

the day the cash was detained. After the competent authorities

carry out a thorough assessment of the necessity and

proportionality of a further period of detention, this period may

be extended by the Commissioner to a maximum period of

ninety (90) days from the day the cash was detained. If during

the thirty (30) or ninety (90) day period, as the case may be, no

court proceedings are instituted regarding the same cash, the

cash shall be immediately released in favour of the person from

whom they were detained

Provided that if during the thirty (30) or ninety (90)

day period, as the case may be, the Commissioner receives an

order in writing issued under any other law on the initiative of a

competent authority impeding the Commissioner from releasing

of the cash to the owner, the Commissioner shall keep that cash

in the Depositary under that order beyond the thirty (30) or

ninety (90) day period, or deal with the cash in accordance with

the order.".

The Enforcement Measures to Recoup Established Duties and

Taxes Regulations shall be amended by the following

(a) in the proviso to sub-regulation (2) of regulation 4

thereof the words "eight day notice is given." shall be substituted

by the words "eight (8) day notice is given:", and immediately

thereafter there shall be added the following new proviso

"Provided further that if there is the sale of

goods and there are pending proceedings under these

regulations or procedures that contest the amount due, the

proceeds of the sale of the goods shall be kept as a deposit

and disposed of as ordered by the court.";

(b) sub-regulation (2) of regulation 5 thereof shall be

substituted by the following new sub-regulation

"(2) Any secretary, director or other officer shall not

be held jointly and severally liable with the legal person if

he proves that he acted in good faith and

(a) that he had under his management or

control any funds or property belonging to or due to

the person of whom he is a representative and before

disposing of any such funds or property he had made

adequate provision for any tax due under this Act;

and

(b) that he was not involved in a decision that

is in breach of any obligation under customs

legislation; and

(c) that he knew that there was no prospect

that the legal person liable to pay duty, taxes or

interest would not be able to meet its duty, taxes or

interest obligations.";

(c) sub-regulation (1) of regulation 7 thereof shall be

substituted by the following new sub-regulation

"(1) Any person that feels aggrieved by the

Commissioner’s action taken by virtue of these regulations,

except the action taken in accordance with regulation 5,

shall have the right to oppose that action by presenting an

application before the Administrative Review Tribunal

within thirty (30) days from the date that he receives notice

on the action taken by the Commissioner, and in the

absence of proceedings before the aforementioned

Tribunal, the claim on the objects seized shall be deemed to

be abandoned.";

(d) immediately after sub-regulation (2) of regulation 7

thereof, as amended, there shall be added the following new sub-

regulations

"(3) The Tribunal shall only hear claims

regarding the enforcement measures under these

regulations and shall not decide any other claim

relating to whether the amount of duty or taxes is

due or relating to the quantum of the amount.

(4) The provisions of articles 792, 793 and

794 of the Code of Organization and Civil

Procedure shall apply mutatis mutandis to the

proceedings under this regulation."; and

(e) immediately after regulation 7 thereof, as amended,

there shall be added the following new regulation

" No right of

8. There shall be no right of action against

action against the

the Commissioner for damages caused by any

Commissioner.

enforcement measure under these regulations,

except when it is proven that the Commissioner

acted in bad faith.".

Passed by the House of Representatives at Sitting No. 109 of the

29th March, 2023.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€3.51