ACT No. XIII of 2024 AN ACT to implement Budget Measures for the Financial Year 2024 and other administrative measures.

I assent.

(L.S.)

GEORGE VELLA

President

2nd April, 2024

ACT No. XIII of 2024

AN ACT to implement Budget Measures for the Financial Year

2024 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:-

The short title of this Act is the Budget Measures

Implementation Act, 2024.

PART I

PRELIMINARY

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

force on the 1st January, 2024.

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 seven hundred million euro (€1,700,000,000).

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

responsible for Finance 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 2024; and

(b) redeeming registered stocks and debt instrument

which shall be due for redemption during the year 2024; 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

AMENDMENT TO THE CUSTOMS ORDINANCE

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

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

Ordinance.

Part referred to as "the Ordinance".

Sub-article (1) of article 63 of the Ordinance shall be Amendment of

article 63 of the

amended by the following

Ordinance.

(a) in paragraph (a) thereof the words "four thousand

euro (€4,000)" shall be substituted by the words "twenty-five

thousand euro (€25,000)";

(b) in paragraph (d) thereof the words "four thousand

euro (€4,000)" shall be substituted by the words "twenty-five

thousand euro (€25,000)"; and

(c) in paragraph (e) thereof the words "four thousand

euro (€4,000)" shall be substituted by the words "twenty-five

thousand euro (€25,000)".

PART III

AMENDMENTS TO THE INCOME TAX ACT

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

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

Act.

Part referred to as "the principal Act".

(2)(a) Articles 9, 11 and paragraph (a) of article 12 shall be

applicable from the year of assessment 2025.

(b)

Article 10 shall be applicable from the year of assessment

2024.

Paragraph (i) of sub-article (5) of article 5A of the principal Amendment of

article 5A of the

Act shall be amended as follows

principal Act.

(a) in sub-paragraph (i) thereof, the words "the Private

Rent Housing Benefit Scheme administered" shall be substituted

by the words "the Private Rent Housing Benefit Scheme, the

Nikru Biex Nassistu Scheme or the Rehabilitation of Vacant

Dwellings for Rent Scheme administered"; and

(b) in sub-paragraph (iv) thereof, immediately after the

words "the Private Rent Housing Benefit Scheme" there shall be

added the words ", the Nikru Biex Nassistu Scheme, or the

Rehabilitation of Vacant Dwellings for Rent Scheme, as the case

may be".

Immediately after the first proviso to paragraph (m) of sub-

article (1) of article 14 of the principal Act there shall be added the

following new proviso

"Provided further that, notwithstanding the first

proviso, any such expenditure may be deducted in the year in

which the said expenditure has been incurred or the year in

which the intellectual property or intellectual property rights

were first used or employed in producing the income of such

person, subject to such conditions as may be prescribed:".

Article 14H of the principal Act shall be deleted.

Article 56 of the principal Act shall be amended as follows

(a) in sub-article (26) thereof, the words "in respect of

the tax so charged." shall be substituted by the words "in respect

of the tax so charged:" and immediately thereafter there shall be

added the following new proviso

"Provided that the Minister may, by rules, make

this sub-article applicable also to other individuals

involved in a sport activity in a full or part-time

employment, including match officials and sports

administrators, subject to such limitations and conditions

as may be prescribed."; and

(b) paragraph (c) of sub-article (26A) thereof shall be

substituted by the following new paragraph

"(c) This sub-article shall be subject to such

limitations and conditions as the Minister may prescribe by

rules.".

PART IV

AMENDMENTS TO THE CENTRAL BANK OF MALTA ACT

This Part amends the Central Bank of Malta Act and it shall

be read and construed as one with the Central Bank of Malta Act,

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

In sub-article (1) of article 8 of the principal Act the words

"shall be set out in their respective letters of appointment" shall be

substituted by the words "approved by the Board".

PART V

AMENDMENTS TO THE SOCIAL SECURITY ACT

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

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

Security Act.

Part referred to as "the principal Act".

In the second proviso to paragraph (a) of the proviso to Amendment of

paragraph (ii) of the definition "Service Pension" in sub-article (1) of article

principal Act.

article 2 of the principal Act, the words "for the purposes of this Act;

and" shall be substituted by the words "for the purposes of this Act:"

and immediately thereafter there shall be added the following new

proviso

"Provided also that, with effect from 1st January

2024, and solely for the purpose referred to in paragraph (a),

where a Service Pension has been commuted in part thereof only

and the pensioner has reached the age of seventy-two (72) years,

or after twelve (12) years from when the Service Pension is paid,

whichever is the earlier, the commuted part shall not still be

taken into account when calculating the contributory pension for

the purposes of this Act; and".

Immediately after sub-article (7) of article 16 of the principal Amendment of

article 16 of the

Act there shall be added the following new sub-article

principal Act.

"(8) Notwithstanding the provisions of sub-article (1), a

mother who commences insurable employment after the birth of

a child shall be entitled to credited contributions for every

calendar week in accordance with the provisions of sub-article

(2)(d).".

In paragraph (a) of sub-article (5) of article 18 of the principal Amendment of

Act, the words "shall not exceed 468; and" shall be substituted by the article

principal Act.

words "shall not exceed 468:" and immediately thereafter there shall

be added the following new proviso

"Provided that, with effect from 1st Janaury 2024 and

notwithstanding the provisions of this Act, where the person

making a claim for such benefit undergoes any major surgical

operation or intervention or suffers a severe injury or is afflicted

by some serious disease which requires a long treatment before

such person may resume work, payment of Sickness Benefit as

aforesaid in this sub-article may be approved by the Director for

any further number of days, not exceeding one hundred fifty-six

(156) days, beyond the limit aforesaid in this sub-article as may

be deemed fit by the Director in the circumstances of the case,

and provided that in any such case the aggregate maximum

number of days payable by way of Sickness Benefit within any

two (2) year period, calculated on a calendar basis, shall not

exceed four hundred sixty-eight (468) days, so however that,

with the exception of the first one hundred fifty-six (156) days,

the person shall be entitled to the Increased Sickness Benefit

equivalent to the rate of the National Minimum Invalidity

Pension as specified in the Twelfth Schedule; and".

In the second proviso to sub-article (1) of article 26 of the

principal Act, the words "of the Twelfth Schedule." shall be substituted

by the words "of the Twelfth Schedule:" and immediately thereafter

there shall be added the following new proviso

"Provided further that, with effect from 1st Janaury

2024, in the case of a person who is certified to be suffering from

mental health and if the person who is suffering from such a

condition proves to the satisfaction of the Director that he has

been undergoing regular treatment for such a condition for at

least three (3) years and that, within the three (3) months

immediately prior to his claim, his condition had been

investigated by a psychiatrist who is or was a consultant

psychiatrist in Government employment and certified by the said

psychiatrist to be suffering from such a condition, and the

contribution conditions as provided in article 17 are satisfied,

shall be entitled to the full rate of an Invalidity Pension, an

Increased Invalidity Pension, or a National Minimum Pension, as

the case may be, in accordance with the Twelfth Schedule.".

Article 59 of the principal Act shall be amended as follows

(a) in sub-article (7) thereof, the words "apply to such

pensions." shall be substituted by the words "apply to such

pensions:" and immediately after there shall be added the

following new proviso

"Provided that, with effect from the 1 st of

January 2024, the provisions of this sub-article shall also

apply in respect of persons born on the 31 st of December

1961 or before."; and

(b) immediately after sub-article (8) thereof there shall

be added the following new sub-article

"(9) Notwithstanding the provisions of this article,

with effect from the 1st of January 2024, any pension

issued under this Part shall be reassessed, with effect from

the first Saturday in January of the year as provided for in

sub-articles (2) to (6), and the provisions of sub-article (7)

shall apply for the subsequent years.".

Immediately after sub-article (4) of article 84 of the principal Amendment of

article 84 of the

Act there shall be added the following new sub-article

principal Act.

"(5) Subject to the provisions of this Act, the Minister

may from time to time, and with the concurrence of the Minister

responsible for finance, make regulations for the purpose of

establishing the payment by the Director of the benefit in respect

of the Additional Benefit to counter the Cost of Living, as

provided for in Part IX of the Fourteenth Schedule.".

Immediately after article 77 of the principal Act, there shall Addition of new

article to the

be added the following new article

principal Act.

" Special allowance.

77A. With effect from the 1st of January 2024 and

without prejudice to the provisions of this Act, it shall be

the right of the parent to have a payment paid out once a

year in accordance with the Fourteenth Schedule, in

respect of every child who has passed his sixteenth

(16th) birthday still living with his parents, and pursues

post-secondary education in an educational institution

recognised by the Malta Further and Higher Education

Authority.".

Article 85 of the principal Act shall be amended by the Amendment of

article 85 of the

following

principal Act.

(a) immediately after sub-article (8A) thereof there shall

be added the following new sub-article (8B)

"(8B) Notwithstanding the provisions of sub-articles

(4), (5), (6), (7), (8) and (8A), with effect from 1st January

2024, 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 are not entitled to a

Contributory Pension, but have paid between fifty (50) and

two-hundred and fifty-nine (259) social security

contributions shall be five hundred euro (€500) 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 are not entitled to a

Contributory Pension, but have paid at least two-hundred

and sixty (260) social security contributions shall be six

hundred euro (€600) per year."; and

(b) immediately after the first proviso to sub-article (9)

thereof there shall be added the following new proviso

"Provided further that, subject to the provisions

of this Act, with effect from 1st January 2024, it shall be

the right of a parent to be paid a one-time child birth or

adoption bonus of five hundred euro (€500) upon the birth

of a child or in the case of an adoption, for such births or

adoptions registered with the Malta Public Registry, and a

one-time bonus of one thousand euro (€1,000) for every

subsequent birth or adopted children that parent has and

who are registered with the Malta Public Registry:".

In paragraph (f) of the first proviso to article 106 of the

principal Act, the words "a social worker:" shall be substituted by the

words "a social worker;" and immediately thereafter there shall be

added the following new paragraph

"(g) the Minister in conjunction with the Minister

responsible for persons with disability shall appoint one

(1) or more interprofessional panels for the purpose of

advising the Director on the evaluation based on the

model of the World Health Organisation International

Classification of Functioning, Disability, and Health

(ICF), in claims further to the provisions of article 27 that

make reference to this panel. Every interprofessional

panel shall be made up of the following members, and

applications shall be assigned to the various panels on a

rotation basis

(i) a medical doctor to confirm a

diagnosis;

(ii) a professional with knowledge on the

assessment of the components of the ICF;

(iii) a social worker;

(iv) an occupational therapist;

(v) an expert from the Department

responsible for the payment of Disability

Assistance; and

(vi) a person with disability, on the advice

of the Chief Executive Officer of Aġenzija

SAPPORT appointed in accordance with

Aġenzija SAPPORT (Establishment as an Agency)

Order

Every applicant who appeared before a panel may

appeal that panel’s decision to the Director within twenty

(20) days from the date on which said decision would

have been communicated to the said applicant, and the

Director shall assign the hearing of said appeal to a panel

other than that which considered the original application.

Further appeal from this decision shall lie to the Court of

Appeal (Inferior Jurisdiction), at the instance of the

applicant or of the Director, following the same

procedure envisaged in article 109:".

In sub-article (3) of article 108 of the principal Act, the words Amendment of

"or beneficiary as the case may be." shall be substituted by the words article

the principal

"or beneficiary as the case may be:" and immediately after there shall Act.

be added the following new proviso

"Provided that the Umpire shall refrain from taking

cognizance of an appeal that may be filed, or that could have

been filed at any stage from a decision taken by the Director, if

the merits of the appeal are the subject of criminal proceedings.".

In the proviso to item 1 of Part II of the Second Schedule to Amendment of

the principal Act, the words "entitled to such assistance; and" shall be the

Schedule to the

substituted by the words "entitled to such assistance:" and immediately principal Act.

thereafter there shall be added the following new proviso

"Provided further that, with effect from 1st January

2024, in the case of a person who has been in receipt of Sickness

Assistance in accordance with the provisions of article 20 for a

period of five (5) years or more and who comes into possession

of other property or assets through inheritance, in lieu of the

limits laid down in the first proviso, shall instead be taken in the

calculation of the capital means the amount of thirty thousand

euro (€30,000) in the case of a single or widowed person, or the

amount of fifty thousand euro (€50,000) in the case of a married

person. So however that, when calculating the capital means in

such cases, no account shall be taken of

(a) a donation of a property by the beneficiary of

the Sickness Assistance to a son or daughter, provided that

such property is being donated to the son or daughter in

order for the son or daughter to form his or her future

house of residence;

(b) a donation of part of the house of residence of

the Sickness Assistance beneficiary to the son or daughter

including the space above such property, provided that

such donation is being made in order for the son or

daughter to form his or her future house of residence; and

(c) a donation of up to a maximum of twenty

thousand euro (€20,000) to the son or daughter by the

beneficiary of the Sickness Assistance, provided such

donation is made in accordance with the provisions of the

laws of Malta; and".

In the second proviso to paragraph (a) of sub-item (7) of the

Thirteenth Schedule to the principal Act, the words "the sum of

€20,964.36." shall be subtituted by the words "the sum of €20,964.36:"

and immediately after there shall be added the following new proviso

"Provided that, notwithstanding the provisions of this

sub-item, with effect from the 1 st of January 2024, in the case of

a person born on or before the 31 st of December 1961, the

pensionable income shall increase gradually to reach the

pensionable income of a person born on or after the 1 st of

January 1962. The resultant calculated pensionable income for

the year 2024 shall not exceed the sum of €22,000.".

The Fourteenth Schedule to the principal Act shall be

amended as follows

(a) the heading thereof shall be substituted by the

following new heading

"FOURTEENTH SCHEDULE

(Articles 30, 70, 72, 73, 76, 76A, 77, 80, 84)"; and

(b) immediately after Part VIII thereof there shall be

added the following new Part

"PART IX

Mechanism establishing the Additional Benefit to

counter the Cost of Living

The rules which regulate this benefit shall be the

following

(1) the additional cost of living increase

accumulated as from the year 2023 onwards shall be

calculated in accordance with the cost of expenses of

persons over the age of 65 years in accordance with the

table in this Part;

(2) the benefit shall be awarded to families whose

disposable equivalised income, in accordance with the

number of members in the family, is below the national

median as defined by Eurostat and as established by the

National Statistics Office every year;

(3) the highest disposable income considered for

the purposes of this benefit shall not exceed €50,000;

(4) the payment shall be dependant on the

disposable equivalised income of the family when

compared with the level of 60% of the national median

equivalised income (the risk of poverty level) and the

number of family members; and

(5) for the year 2024, the payment of the benefit

for the full year shall be between the minimum of €100 and

maximum of €1,500.

Cost of Living

Cost of Living

Difference*

Increase for Persons

Increase

of 65 years or over

COLA

Mechanism

€

€

€

10.48

9.90

0.58

15.14

12.81

2.33

* The benefit is calculated on the accumulated

difference up to the basis payment year. If the difference

from one year to another is less, the amount accumulated is

retained.".

PART VI

AMENDMENTS TO THE DUTY ON DOCUMENTS AND

TRANSFERS ACT

(1) This Part amends the Duty on Documents and Transfers Amendments to

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

Documents and

Documents and Transfers Act, hereinafter in this Part referred to as Transfers

"the principal Act".

(2) Articles 30 and 31(b) shall be deemed to have come into force

on the 1 st January 2024.

Article 32G of the principal Act shall be amended as follows

Amendment of

article 32G of

the principal

(a)

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

Act.

"the Private Rent Housing Benefit Scheme administered" shall

be substituted by the words "the Private Rent Housing Benefit

Scheme, the Nikru Biex Nassistu Scheme or the Rehabilitation

of Vacant Dwellings for Rent Scheme administered"; and

(b) in sub-article (4) thereof, immediately after the

words "the Private Rent Housing Benefit Scheme" there shall be

added the words ", the Nikru Biex Nassistu Scheme, or the

Rehabilitation of Vacant Dwellings for Rent Scheme, as the case

may be".

Article 35 of the principal Act shall be amended as follows

(a) in paragraph (i) of sub-article (4) thereof, the words

"whichever is the later." shall be substituted by the words

"whichever is the later:" and immediately after there shall be

added the following new proviso

"Provided that for the purposes of a claim for

the exemption on a transfer causa mortis granted in

accordance with sub-article (2)(v), where

(a) the right of the person making the

declaration of the transfer causa mortis to acquire the

dwelling house in question, or a part thereof, or a real

right thereon, has been the subject of litigation in a

court of law which has been concluded by a judgment

which has become res judicata; and

(b) a copy of the said judgment is attached to

the notice required to be given to the Commissioner

in accordance with article 33,

the said period of one (1) year shall be reckoned to

run from the date on which the said judgment became res

judicata."; and

(b) immediately after sub-article (8) thereof there shall

be added the following new sub-articles

"(9) Notwithstanding the provisions of article 32,

but without prejudice to sub-articles (10) to (13), no duty

shall be levied on the transfer causa mortis of qualifying

agricultural land.

(10) For the purposes of sub-articles (9) to (13),

"qualifying agricultural land" means immovable

property situated in Malta which is certified by the

competent authority responsible for the agriculture land

lease and ownership register within the Ministry

responsible for agriculture as land which, at the time of

the transfer in question

(a) is an agricultural activity as defined in

the Agriculture Act, is being undertaken by the heir

or one (1) of the heirs who classifies as a

professional farmer and, or is being inherited by an

heir who is himself a professional farmer as shall

be established by the Minister responsible for

agriculture by means of the publication of a notice

in the Gazette; or

(b) is leased in accordance with the

provisions of the Agricultural Leases (Reletting)

Act and is registered with the competent authority

responsible for the agricultural land lease and

ownership register.

(11) A certificate issued in accordance with sub-

article (10) shall be attached to the declaration of the

transfer causa mortis of the property in question drawn

up in accordance with article 33 together with such

details and documents as the Commissioner may require.

(12) An exemption requested in terms of sub-article

(9) shall be granted on condition that before the lapse of

five (5) years from the date of the transfer causa mortis

no transfer inter vivos is made of the property in question

or of a part of it

Provided that, where the qualifying agricultural

land is assigned to any of the co-owners who is himself a

professional farmer by deed of partition, such shall not

be considered as a transfer in terms of this sub-article.

(13) A claim for an exemption in accordance with

sub-article (9) may be withdrawn by means of a

declaration of a transfer causa mortis made in

accordance with article 33 that modifies the declaration

in which the exemption had been requested and the

payment of the duty on that transfer, with interest at the

prescribed rate which shall run as from the date of the

first anniversary of the transfer causa mortis.".

PART VII

AMENDMENTS TO THE INCOME TAX MANAGEMENT ACT

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

it shall be read and construed as one with the Income Tax Mangement

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

(2) Article 33 shall apply to accounting periods commencing on,

or after 1st January 2024.

Paragraph (a) of sub-article (4) of article 19 of the principal

Act shall be substituted by the following new paragraph

"(a) in the case of a company registered in Malta, the

balance sheet and profit and loss account, which shall

comply in every detail with the applicable provisions of

articles 167, 168 and 169 of the Companies Act, and the

said balance sheet and profit and loss account shall have

attached thereto a report drawn up by a certified public

auditor as provided by the applicable provisions of

articles 179 and 181 of that Act, save as may otherwise

be expressly provided in rules which the Minister may

prescribe

Provided that in the case of a company which is

not resident in Malta, such records shall be those which

refer to the company’s activities in Malta;".

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 (4) of article 10 of the principal Act shall be

substituted by the following new sub-article

"(4) A taxable person who is not established in Malta,

who is not registered in accordance with this article and who is

liable for the payment of the tax on a supply in accordance with

article 20 shall apply to be registered in accordance with this

article by not later than thirty (30) days from the date of that

Provided that such person shall be relieved of the

obligation to be registered in accordance with this sub-article

when such person notifies the Commissioner that any of the

special schemes provided for in accordance with Chapter 6 of

Title XII of Council Directive 2006/112/EC of 28 November

2006 on the common system of value added tax will be used to

declare and pay the tax which that person is liable to pay, in line

with the provisions of the respective special scheme, by no later

than ten (10) days from the date of that supply.".

Sub-article (5) of article 21 of the principal Act shall be Amendment of

article 21 of the

substituted by the following new sub-article

principal Act.

"(5) The payment of the tax shall be accompanied by the

delivery to the Commissioner of the respective form as the

Minister may by regulations prescribe

Provided that tax on importations shall be payable to

the Commissioner and shall be made at such place and be

accompanied by such forms as the Commissioner may direct.".

Immediately after sub-article (2) of article 28 of the principal Amendment of

article 28 of the

Act there shall be added the following new sub-articles

principal Act.

"(3) Notwithstanding the other provisions of this article,

where a provisional assessment made in accordance with article

32(1) and (2) is served to a person, any tax return furnished to

the Commissioner to which such an assessment relates may not

be corrected after being served with that provisional assessment,

until such time an assessment in accordance with article 32(3)

and (4) is made or until such time the provisional assessment is

cancelled by the Commissioner

Provided that this shall not prejudice the person’s

right to cooperate with the Commissioner in order for the

assessment made in accordance with article 32(3) to contain such

variations as may be agreed to by the said person.

(4) Notwithstanding the other provisions of this article,

when a correction is required to be made to a tax return in

accordance with sub-article (1), after an assessment has been made

in accordance with article 32(3) and (4), any such correction shall

be subject to the approval of the Commissioner.".

Sub-article (1) of article 47 of the principal Act shall be Amendment of

article 47 of the

substituted by the following new sub-article

principal Act.

"(1) Any of the parties to an appeal or a reference to the

Tribunal who feel aggrieved by the decision of that Tribunal

may, by means of an application which shall be filed within

thirty (30) days from the date of the service of the decision

appealed from, but not later than one hundred and eighty-three

(183) days from the date of the decision by the Tribunal, or on

30 th June 2024, whichever date is the later, appeal against that

decision only on the following questions of law:".

Sub-article (1) of article 48 of the principal Act shall be

substituted by the following new sub-article

"(1) Every taxable person established in Malta shall keep

full and proper records of all transactions carried out in the

course or furtherance of his economic activity.".

Article 53 of the principal Act shall be amended by the

following

(a) the word "Inspections." in the marginal note thereof

shall be substituted by the words "Inspections and requests for

information.";

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

following new paragraph

"(b) to inspect and to require electronic access to

any books, records, information and documents, including

those contained in any computerised system, and to request

a copy or extracts thereof, relating to the economic activity

of any person;";

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

following new paragraph

"(c) without prejudice to the provisions relating to

the duty of professional secrecy, to require any person to

give such information as may be requested for the purpose

of determining whether any supplies have been made by or

to that person or any third party on which that person may

have information, or whether any intra-community

acquisitions or importations have been made by that person

or any third party on which that person may have

information, or the value of any such supply, acquisition or

importation, and to require the attendance of any person at

the office of the Commissioner for the purpose of

providing such information;"; and

(d) paragraph (e) thereof shall be substituted by the

following new paragraph

"(e) to require electronic access to any invoices

issued or received electronically by a taxable person or

non-taxable legal person identified for Value Added Tax

purposes, established in Malta.".

Sub-article (4) of article 56 of the principal Act shall be Amendment of

article 56 of the

substituted by the following new sub-article

principal Act.

"(4) Notwithstanding the other provisions of this

article or of any other law, the Commissioner shall

furnish to the competent authority designated under the

Eco-Contribution Act such information being

information obtained by the Commissioner for any of

the purposes of this Act.".

Sub-article (1) of article 61 of the principal Act shall be Amendment of

article 61 of the

substituted by the following new sub-article

principal Act.

"(1) The Commissioner shall, for the purpose of

ascertaining, collecting and protecting the tax chargeable under

this Act on taxable importations, have the same powers and shall

follow the same procedures as are in accordance with any other

law exercisable and followed by him for the purpose of

ascertaining, collecting and protecting import duties.".

Article 74 of the principal Act shall be substituted by the Substitution of

article 74 of the

following new article

principal Act.

" General anti-abuse

74. (1) Any artificial or fictitious scheme which

directly or indirectly results in the accrual of a tax

advantage when the essential aim of that scheme is for a

person to obtain said advantage the grant of which

would be contrary to the purpose of the provisions of

this Act, shall be disregarded in such a manner as to

redefine the scheme so as to re-establish the situation

that would have prevailed in the absence of such

scheme.

(2) Notwithstanding the other provisions of this

Act, no amount shall be treated as input tax of a person

in terms of article 22(2) to the extent to which it

represents tax chargeable on goods or services having

been the subjects of VAT fraud committed upstream or

downstream in the chain of supply, when that person

knew or should have known of such fraud, irrespective

as to whether that person actively participated in that

fraud.

(3) When the Commissioner has reason to believe

that the provisions of sub-articles (1) or (2) apply, he

may make an assessment in accordance with articles 31,

32 or 33 determining the tax liability or the entitlement

to any input tax credit, refund or set-off of tax of the

said person, for any tax period, in such manner and in

such amount as may be necessary according to the

circumstances of the case

Provided that this shall not prejudice the right

of a person to object to such an assessment and to

appeal from a decision of the Commissioner refusing

that objection. The relevant provisions of this Act

relating to objections and appeals shall apply mutatis

mutandis.

(4) In this article "scheme" includes any

transaction or sequence of transactions, disposition,

agreement, arrangement, trust, grant, covenant, transfer

o f a s s e t s , s t r u c t u r e , a l i e n a t i o n o f p r o p e r t y,

irrespectively of the date on which such scheme was

made, entered into or set up.".

Paragraph (f) of sub-article 75 of the principal Act shall be

substituted by the following new paragraph

"(f) prescribe any other matter for securing the payment

of the tax and generally for giving effect to the provisions of this

Act, including enforcement provisions and applicable fines

(multi) and administrative penalties; and".

Paragraphs (c) and (d) of article 76 of the principal Act shall

be substituted by the following new paragraphs

"(c) fails to furnish any tax return, additional return,

statement or information when required to do so in virtue of this

Act or of any regulations made under this Act;

(d) fails to produce or provide access to any books,

records, documents, information and accounts, or fails to pay any

tax or administrative penalty due when required to do so in virtue

of this Act or of any regulations made under this Act;".

PART IX

AMENDMENTS TO THE ARBITER FOR FINANCIAL

SERVICES ACT

This Part amends the Arbiter for Financial Services Act and it Amendments to

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

Financial

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

In the Maltese text the words "provditur" or "provdituri", General

wherever they occur in the principal Act, shall be substituted by the amendment

the principal

words "fornitur" or "fornituri" respectively.

Act.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a) immediately after the definition "Board" there shall

be added the following new definition

" "competent authorities" means the Malta Financial

Services Authority, Central Bank of Malta, Malta

Competition and Consumer Affairs Authority and any

other authority as the Minister may prescribe by

regulations;"; and

(b) the definition "financial services provider" shall be

substituted by the following new definition

" "financial services provider" means a provider of

financial services which is, or has been licensed or

otherwise authorized in terms of the Malta Financial

Services Authority Act or in terms of any other financial

services law, and is related to investment services,

banking, financial institutions, credit cards, pensions,

insurance, and any other service which in the opinion of

the Arbiter constitutes a financial service, which is, or

has been resident in Malta or is, or has been resident in

another EU Member State or in another EEA Member

State and which offers, or has offered its financial

services in and, or from Malta. A provider of financial

services which has had its licence or other authorisation

suspended or withdrawn, but which was licensed or

otherwise authorised during the period in relation to

which the occurred facts that gave rise to a complaint by

an eligible customer is made to the Arbiter, shall be

considered as falling within the definition of a financial

services provider;".

Paragraph (a) of sub-article (3) of article 9 of the principal Act Amendment of

article 9 of the

shall be substituted by the following new sub-article

principal Act.

"(3)(a) Within six (6) months prior to the start of a

financial year and not later than the end of each subsequent three

(3) year interval following the anniversary of such day, the Board

in consultation with the Arbiter shall prepare and approve a

strategic plan in the form of a report for the upcoming three (3)

year period, starting immediately from the financial year

subsequent to the year in which the strategic plan is approved.".

In paragraph (d) of sub-article (1) of article 21 of the principal

Act the words "For the purpose of this sub-article" shall be deleted and

the words "conduct that is continuing" shall be substituted by the

words "Conduct that is continuing".

Immediately before article 22 of the principal Act under the

heading "PART V Proceedings" there shall be added the following new

21A. (1) A financial services provider shall be

bound to follow such procedures that it is subject to for

responding to a complaint and shall be bound to provide

a final reply to the complainant in writing by not later

than fifteen (15) working days from when the complaint

is registered in writing with the financial services

provider

Provided that, if due to exceptional

circumstances beyond the control of the financial

services provider, a final reply to a complaint cannot be

given within such fifteen (15) working days, the financial

services provider shall

(i) inform the complainant about the

reasons for the delay; and

(ii) provide an indication as to when a final

reply is likely to be provided.

In such an event, a final reply shall be provided within

thirty-five (35) working days from the receipt of a

complaint in writing.

(2) A final reply shall include clear information

about the complainant’s right to refer a complaint to the

Arbiter with complete contact details of the Office of the

Arbiter for Financial Services and that time limits may

apply for bringing such a complaint to such dispute

resolution mechanism.".

In sub-article (1) of article 22 of the principal Act, the words

"as from the receipt of such a complaint by the Arbiter" shall be

substituted by the words "as from the registration of such a complaint

by the Office".

Immediately after article 27 of the principal Act there shall be Addition of new

article 27A to

added the following new article

the principal

Act.

27A. (1) For the proper discharge of their

respective duties, the Office and competent authorities

shall cooperate and exchange information about issues

that, in the Arbiter’s opinion, are likely to have wider

regulatory implications, including issues that appear to

affect multiple customers of one (1) or more financial

service providers.

(2) The Arbiter may direct the Board to enter into a

memorandum of understanding with such competent

authorities, setting out the terms under which they agree

to comply with sub-article (1). Such agreements shall be

publicly available in electronic format or on request.

(3) Any information divulged or exchanged

pursuant to this article shall be treated as confidential by

the respective parties, and its disclosure may only be

permitted if prior consent of the respective parties is

obtained in writing.

(4) Such exchange of information shall be without

prejudice to article 27(6).".

PART X

AMENDMENTS TO THE PUBLIC FINANCE

MANAGEMENT ACT

This Part amends the Public Finance Management Act and it Amendments to

shall be read and construed as one with the Public Finance the

Finance

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

Act.

In paragraph (b) of sub-article (2) of article 77 of the principal Amendment of

Act the words "the procurement of fixed assets" shall be substituted by article

principal Act.

the words "investments, deposits and the transfer of moneys, the

procurement of fixed assets".

Passed by the House of Representatives at Sitting No. 225 of the

27th March, 2024.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Clerk of the House of Representatives

€2.16