INCOME TAX MANAGEMENT ACT

CHAPTER 372

INCOME TAX MANAGEMENT ACT

To regulate the collection of income tax and to provide the administrative machinery for

such collection.

23rd September, 1994

ACT XVIII of 1994 as amended by Acts XXIII and XXIV of 1995, XX of 1996 , XVI of

1997 , V of 1998 , I and IX of 1999, VI and IX of 2001, II of 2002 , II of 2003 , II and XIII

of 2004, II of 2005 , and II, IV and IX of 2007; Legal Notice 425 of 2007 ; Acts I of 2008 ,

II of 2009 and I of 2010 ; Legal Notices 336 and 390 of 2010; and Acts IV of 2011 , V of

2012, III of 2013 , XII , XXXVII of 2014, XIII and XXXIII of 2015, XV of 2016 , XVI of

2017 VII of 2018. , VII of 2019, VIII of 2020, VIII and XVIII of 2021, XII of 2023 and XIII of

2024 and IX and XXX of 2025 and Act III of 2026.

The short title of this Act is Income Tax Management Act.

In this Act, and in any rules made under this Act, words

and expressions shall, unless the subject in context otherwise

requires, have the same meaning and the same interpretation as the

meanings and interpretations contained in article 2 of the Income

Tax Act.

PART II

Administration

(1) The administration of this Act and of the Income Tax

Act, (hereinafter collectively referred to as "the Income Tax Acts")

is vested in the Commissioner who may, in writing and subject to

such limitations as he may think fit, delegate to any person any of

the rights, duties, powers and other functions vested, conferred or

imposed upon him by the Income Tax Acts.

(2) The Commissioner may appoint any person who in his

opinion has the necessary qualifications to assist him in

determining the value of any movable or immovable property for

any of the purposes of the Income Tax Acts and such person shall,

during the term of his appointment, be deemed to be an officer

employed in the administration of the Income Tax Acts and serving

in the Commissioner’s department.

(1) Except as may be necessary for the purposes of the

Income Tax Acts, or where the Commissioner otherwise directs,

every person having any official duty or being employed in the

administration of the Income Tax Acts shall regard and deal with

all documents, information, returns and assessments relating to the

Income Tax Acts, or copies thereof, as secret and confidential and

shall make and subscribe before the Court of Appeal a declaration

on oath to that effect in the form prescribed.

(2) No person appointed under or employed in carrying out the

provisions of the Income Tax Acts shall be required to produce any

return, document or assessment or to divulge or communicate any

matter or thing coming under his notice in the performance of his

duties under the Income Tax Acts except as may be necessary for the

purpose of carrying into effect the provisions of the Income Tax Acts,

or in the course of any judicial or quasi-judicial proceedings when

ordered to disclose information by a court or tribunal or for the

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

offence committed against any of the provisions of the Income Tax

Acts, or in the course of an investigation or a prosecution for any

relevant offence.

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

criminal offence, not being one of an involuntary nature, consisting of

any act or omission which if committed in Malta, or in corresponding

circumstances, would constitute an offence liable to the punishment of

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

(3)

Nothing contained in this article shall prejudice the

international obligations that the Commissioner or any person referred

to in sub-article (2) may have, including confidentiality obligations

under arrangements made under article 76 of the Income Tax Act and

regulations implementing EU Directives under article 52B of the

Income Tax Act and shall not prevent the disclosure to any authorised

representative of any other Government of such information as is

required to be disclosed in terms of -

(a) any arrangement made under article 76 of the Income

Tax Act including the disclosure of such facts as may

be necessary to enable proper relief to be given in

Malta or elsewhere under any such arrangement or

under article 89 of the Income Tax Act;

(b) any other arrangement between Malta and other States

or their tax authorities providing for the reciprocal

exchange of information for tax purposes.

(4) (Deleted by Act XIII. 2015.120).

(5)

(a) The Commissioner shall submit to the Speaker of the

House of Representatives a certified statement

s h ow i n g t h e d e t a il s o f i nc o m e d e c la r e d by e a c h

Member of the House for the purpose of the Income

Tax Acts from the year of assessment in which such

Member first became a Member of the House and for

every subsequent year of assessment up to and

including the year of assessment following the year in

which such Member ceases to be a Member of the

House

Provided that if a Member having ceased to be a

Member of the House as aforesaid again becomes a

Member of the House, the Commissioner shall also

submit to the Speaker the details of the income in

respect of the period covering the years when such

member ceased to be a Member until he again becomes

a Member of the House.

(b) The Speaker of the House of Representatives shall,

upon a request in writing by any Member of the House

or by the editor responsible for any newspaper

registered under the Media and Defamation Act,

furnish such Member or editor with the details of

income in respect of any year of assessment declared

by any Member of the House for the purposes of the

Income Tax Acts, provided that the details of income

so requested have been made available to the Speaker

under the provisions of paragraph (a) and that prior to

giving such information the Speaker shall notify such

Member whose details of income are being requested,

with a copy of such request and of the reply being

given.

(6) Notwithstanding anything contained in this article, the

Commissioner may permit the Auditor General of the Government

or any other officer duly authorised in that behalf by the Auditor

General to have such access to any records or documents as may be

necessary for the performance of his official duties. The Auditor

General or any such officer shall be deemed to be a person

employed in the administration of this Act for the purpose of this

article.

(7) Notwithstanding anything contained in this article, the

Commissioner may make use of the documents, information and

returns relating to the income or items of income of any person for

the purpose of the Duty on Documents and Transfers Act, and may

produce or cause to be produced in court in any proceedings

relating to duties levied or leviable, and for the collection of any

penalty inflicted under such Act, a copy of any particulars

contained in any document of return as aforesaid, certified by him

or b y the chairma n of the Ad m i ni s tr a t i ve R e vi e w Tri b un a l

constituted under article 34 or by the Registrar of Courts, as the

case may be, to be a correct copy of such particulars

Provided that the Commissioner may produce or cause to be

produced the original of any such document or return in any case

where it is necessary to prove the handwriting or the signature or

the identity of the person who wrote, made, signed or furnished

such document or return, but only for the purpose of such proof.

(8) Nothing in this article shall prevent the delivery of

documents by the Commissioner in accordance with article 57.

(9)

Deleted by Act VIII.2021.8.

PART III

Persons Assessable

(1) Further to the provisions contained in Part IX of the

Income Tax Act, a person not resident in Malta (hereinafter in this

Act referred to as "a non-resident person") shall be assessable and

chargeable in the name of his trustee, guardian, tutor, curator or

committee, or of any attorney, factor, agent, receiver, branch or

manager, whether such attorney, factor, agent, receiver, branch or

manager has the receipt of the income or not, in like manner and to

the like amount as such non-resident person would be assessed and

charged to tax in Malta as if he were in the actual receipt of such

income.

A non-resident person shall be assessable and chargeable in

respect of any income arising, whether directly or indirectly,

through or from any attorneyship, factorship, agency, receivership,

branch or management, and shall be so assessable and chargeable in

the name of the attorney, factor, agent, receiver, branch or manager.

(2) Where the registered holder of a share holds such share for

the benefit of another person, the Commissioner shall be entitled to

treat such registered holder as beneficially entitled to such share

except as provided in sub-article (3).

(3) Where the registered holder of a share had been licensed

under article 51A of the Malta Financial Services Authority Act

and until such time that he is so licensed or is authorised or

otherwise permitted to act as a trustee under article 43 or 43A of

the Trusts and Trustees Act, a central securities depository authorised

under article 24 of the Financial Markets Act or is licensed under the

Investment Services Act, to carry out activities within paragraph 4

of the First Schedule to that Act and provides the Commissioner

with a certificate in writing that he holds the share for the benefit of

a person or persons all of whom are not resident in Malta within the

meaning of the Income Tax Acts, the Commissioner shall not treat

the registered holder of the share as beneficially entitled to it

Provided that this sub-article shall only apply where the

certificate referred to herein includes the names and taxpayer

identification numbers of the person or persons for the benefit of which

the share is held and of their ultimate beneficial owners, and any other

details as the Commissioner may require.

(4) A person referred to in sub-article (3) who issues a false

certificate to the Commissioner shall be guilty of making a false

statement within the meaning of article 52(1)(b).

(5) The master of any ship owned or chartered by a non-

resident person who is chargeable under article 28 of the Income

Tax Act shall (though not to the exclusion of any other agent) be

deemed the agent of such non-resident person for all the purposes

of the Income Tax Acts.

(6) Where a non-resident person carried on business with a

resident person, and it appears to the Commissioner that, owing to

the close connection between the resident person and the non-

resident person and to the substantial control exercised by the non-

resident person over the resident person, the course of business

between those persons can be so arranged and is so arranged that

the business done by the resident person in pursuance of his

connection with the non-resident person produces to the resident

person either no profits or less than the ordinary profits which

might be expected to arise from the business, the non-resident

person shall be assessable and chargeable to tax in the name of the

resident person as if the resident person were an agent of the non-

resident person.

(7) Where it appears to the Commissioner that the true amount

of the gains or profits of any non-resident person chargeable to tax

in the name of a resident person cannot in any individual case be

readily ascertained, the Commissioner may, if he thinks fit, assess

and charge the non-resident person on a fair and reasonable

percentage of the turnover of the business done by the non-resident

person through or with the resident person in whose name he is

chargeable as aforesaid and in such case the provisions of the

Income Tax Acts as to the delivery of returns or particulars by

persons acting on behalf of others shall extend so as to require

returns or particulars to be furnished by the resident person of the

business so done by the non-resident person through or with the

resident person, in the same manner as returns or particulars are to

be delivered by persons acting for incapacitated or non-resident

persons in respect of income to be charged

Provided that the amount of the percentage shall in each

case be determined having regard to the nature of the business and

shall, when determined by the Commissioner, be subject to an

appeal as provided by articles 35 and 37.

(8) Nothing in this article shall render a non-resident person

chargeable in the name of a broker or general commission agent or

other agent where such broker, general commission agent or agent

is not an authorised person carrying on the regular agency of the

non-resident person, or a person chargeable as if he were an agent

in pursuance of sub-articles (5), (6) and (7), in respect of gains or

profits arising from sales or transactions carried out through such a

broker or agent.

(9) The fact that a non-resident person executes sales or carries

out transactions with other non-residents in circumstances which

would make him chargeable in pursuance of sub-articles (5) and (6)

in the name of a resident person shall not of itself make him

chargeable in respect of gains or profits arising from those sales or

transactions.

(10) Where a non-resident person is chargeable to tax in the

name of any attorney, factor, agent, receiver, branch or manager in

respect of any gains or profits arising from the sale of goods or

produce manufactured or produced out of Malta by the non-resident

person, the person in whose name the non-resident person is so

chargeable may, if he thinks fit, apply to the Commissioner to have

the assessment to tax in respect of those gains or profits made or

amended on the basis of the profits which might reasonably be

expected to have been earned by a merchant or, where the goods are

retailed by or on behalf of the manufacturer or producer, by a

retailer of the goods sold, who had bought from the manufacturer or

producer direct, and, on the proof to the satisfaction of the

Commissioner of the amount of the profits on the basis aforesaid,

the assessment shall be made or amended accordingly.

(11) A non-resident person shall not, by virtue of this article, be

assessable or chargeable to tax in the name of an agent or other

representative in respect of gains or profits arising to the non-

resident person resulting from the provision in Malta by the agent

or such other representative of any of the services listed in the First

Schedule to the Investment Services Act, provided that

(a) the investment services concerned are carried out in

the ordinary course of such business; and

(b) the remuneration which the agent or other

representative receives for the provision of investment

services to the non-resident person is at a rate which is

not less than that which is customary for that class of

business, and in the case of an agent or other

representative who provides investment services as

part only of a business, the provisions of paragraphs

(a) and (b) shall apply as if that part were a separate

business.

(12) For the purposes of sub-article (11) an agent or other

representative shall be deemed to have carried out an investment

service on behalf of his principal whether he undertakes the

transaction himself or gives instructions to another person.

(13) The activities of the agent or other representative shall not

affect the residence of the non-resident person for tax purposes.

The person in whose name a non-resident person is

chargeable, shall be answerable for all matters required to be done

by virtue of the Income Tax Acts for the assessment of the income

of any person for whom he acts and for paying the tax chargeable

thereon.

(1) The manager or other principal officer of every body of

persons shall be answerable for doing all such acts, matters and

things as are required to be done by virtue of the Income Tax Acts

for the assessment of such body and payment of the tax.

(2) Every such principal officer shall pay the tax out of the

property of the body of persons. He shall, however, be liable for

payment personally, and jointly and severally with any other person

responsible therefor, if at any time after 1st January, 1979 he had in

his possession or control any property belonging to the body of

persons which could have been used to pay the tax then due.

(3) The liquidator of a company which is being wound up shall

not distribute any of the assets of the company to its shareholders

unless he had made provision, in so far as he is able to do so out of

the assets of the company, for the payment in full of any tax which

he knows of or might reasonably expect to be payable by the

company under the Income Tax Acts and in default, such liquidator

shall be liable personally, and jointly and severally with any other

person responsible therefor, for payment of the tax due

Provided that this sub-article shall not apply to an official

receiver, or any other person, appointed in accordance with the

provisions of article 225 of the Companies Act.

Every person who in whatever capacity is in receipt of any

money or value being income arising from any of the sources

mentioned in the Income Tax Acts or belonging to any person who

is chargeable in respect thereof, or who would be so chargeable if

he were resident in Malta and not an incapacitated person, shall

whenever required to do so by any notice from the Commissioner,

prepare and deliver within the period mentioned in such notice a

list signed by him containing -

(a) a true and correct statement of such income; and

(b) the name and address of every person to whom the

same shall belong,

and the provisions of the Income Tax Acts with respect to the

failure to deliver lists or particulars in accordance with a notice

from the Commissioner shall apply to any such lists.

Every person answerable under the Income Tax Acts for

the payment of tax on behalf of another person may retain out of

any money coming to his hands on behalf of such other person so

much thereof as shall be sufficient to pay such tax, and shall be and

is hereby indemnified against any person whatsoever for all

payments made by him in pursuance and in virtue of the Income

Tax Acts.

PART IV

Returns

(1) The Commissioner may, by notice in writing, require

any person to furnish him by not later than such date as may be

prescribed with a return of income together with and containing

such particulars, statements, accounts, computations or other

documents as may be necessary to enable such person’s income and

allowable deductions and the tax payable by or repayable to that

person to be readily ascertained in accordance with and for the

purposes of the Income Tax Acts.

(2) The Commissioner may, by means of the notice referred to

in sub-article (1), require any person to include in his return of

income for the year of assessment 1999 and any subsequent year of

assessment a self-assessment, that is to say, a com putation

showing

(a) the chargeable income of that person for the year of

assessment on the basis of the information contained

in the return of income;

(b) the tax chargeable thereon; and

(c) the tax payable by or repayable to that person for the

year of assessment, being the difference between the

tax computed under paragraph (b) and the aggregate of

the amounts referred to in the following sub-

paragraphs, disregarding any credit, relief or tax paid,

withheld, payable or repayable for any other year of

assessment

(i)

any provisional tax paid and any tax deducted at

source that falls to be set off or that is available

as a credit in accordance with the provisions of

the Income Tax Acts against the tax computed

under paragraph (b);

(ii) any tax credit or relief claimed and due in

accordance with the provisions of Part X of the

Income Tax Act relating to the chargeable

income computed under paragraph (a);

(iii) any tax credit or relief claimed and due in

accordance with the provisions of any other law

and relating to the chargeable income computed

under paragraph (a)

Provided that notwithstanding anything in any

enactment, with effect from year of assessment

2010 no account shall be taken of any

requirement imposed on any company in terms

of the Business Promotion Regulations to set-off

any particular tax credits or any balance thereof

granted in terms of the Business Promotion

Regulations after the application of any other tax

credits available to that company in terms of the

Business Promotion Act and the Business

Promotion Regulations, such that the company

shall be entitled to determine the order in which

such tax credits or part thereof shall be claimed

for set-off against its income; and

(iv)

any other amount paid on account of the tax

chargeable for the year of assessment as

computed under paragraph (b).

(3) A self-assessment shall not be construed as being an

assessment for any purpose of the Income Tax Acts and any

reference in the said Acts to an assessment shall not be construed as

or as including a reference to a self-assessment.

(4) If a person required to file a return of income under this

article is a company registered in Malta it shall furnish together

with the return the documents specified in article 19(4).

(5) No return purporting to have been filed in accordance with

the provisions of this article shall be considered to have been so

filed unless it is complete in all material respects, including a self-

assessment when required by the notice referred to in sub-article

(1), and unless it is accompanied by such documents as are required

under the other provisions of this article.

(1) The Commissioner may, when and as often as he

deems necessary, give notice in writing to any person to furnish

him, within a reasonable time stated in such notice, not being less

than twenty (20) days, such information as may be necessary in order

to provide information, including documents, to foreign tax

authorities where arrangements between Malta and the respective

State or its tax authorities exist for the reciprocal exchange of

information for tax purposes.

(2) The provisions of this article shall apply even if the

Commissioner could not collect the relevant information for the

purposes of the Income Tax Acts. The provisions of this article

shall have effect in respect of any person, entity or scheme,

including a person entity or scheme referred to in article 17,

notwithstanding any obligation to secrecy or confidentiality, or to

any other restriction relating to the disclosure of information.

(3) For the purposes of this article, "tax" means any tax to

which an arrangement as referred to in sub-article (1) applies.

(4) The powers of the Commissioner to require a person to

provide information under this article include the power

(a) to require any person to complete and deliver to the

Commissioner any return specified in that notice;

(b) to summon any person who, he has reason to believe,

is able to give information required for the purposes of

this article, to attend before him and to examine such

person on oath or otherwise;

(c) to require any person to produce for examination any

books, documents, accounts (including bank

statements, passbooks and other bank documents) and

any other document which the Commissioner may

require or a copy or extract thereof;

(d) to require any person to give information by means of

written statements;

(e) to require any person to authenticate in such form as

the Commissioner may consider appropriate or as may

be prescribed any document prepared by that person or

an extract thereof or the copy of any document held by

that person or of an extract thereof;

(f)

to require any person to confirm on oath any

declaration made by him or any document prepared by

him;

(g) to require any person to provide information,

documents or written statements in such other form as

the Minister may prescribe.

(5) The Minister may make rules for the collection and

maintenance of information, even where arrangements between

Malta and other relevant jurisdictions, or their tax authorities, for

the purposes of exchange of information for tax purposes, are not in

force

Provided that the person that is obliged to collect and

maintain such information according to such rules shall not be

obliged to provide such information to the Commissioner before an

arrangement between Malta and the other relevant jurisdiction, or

its tax authorities, for the purposes of exchange of information for

tax purposes, enters into force.

Where any person chargeable with tax has not received the

notice mentioned in article 10(1)in respect of any year of

assessment for which he is so chargeable by such date as may be

prescribed for the purpose of this article, the provisions of the said

article 10 shall apply to him as if he has been duly served with a

notice under sub-article (1) of that article and, with respect of the

year of assessment 1999 and any subsequent year of assessment,

with a notice under sub-article (2) of that article, and it shall

accordingly be the duty of that person to furnish a return of income

under that article including, when applicable, a self assessment for

that year and to comply with all the other provisions of the said

article.

(1) Notwithstanding the provisions of articles 10 and 11,

but without prejudice to the other provisions of this Part, a person

to whom this article applies shall not be required to furnish a return

of income for a year of assessment if he makes an election for that

year under and in accordance with this article.

(2)

This article applies to

(a) an individual resident in Malta whose total income for

the year of assessment -

(i)

does not include any income falling under article

4(1)(a) of the Income Tax Act; and

(ii) does not exceed the amount to which a nil rate of

tax applies in terms of the relevant provisions of

article 56(1) of the Income Tax Act;

(b) an individual resident in Malta whose total income for

the year of assessment consists solely of income that

was subject to deduction at source, including income

subject to a nil rate of deduction, in terms of

regulations made for the purposes of article 23 and

fully reported in a statement or statements of earnings

prepared in accordance with the said regulations and

held in his possession;

(c) a person who is designated as a person to whom this

article applies by regulations that may be prescribed

under this article.

(3)

(a) When a person has an option in terms of any provision

of the Income Tax Act to disclose or not disclose

income, that income shall not be taken into account for

the purposes of sub-article (2), and if that person

makes an election under this article he shall be deemed

for the purposes of the Income Tax Acts to have opted

not to disclose that income and such income shall

accordingly not form part of his total income.

(b) When a person makes an election under this article, the

income that he would have been required to disclose

were it not for the provisions of this article shall be

taken into account in determining his total income for

any purpose of the Income Tax Acts.

(c) When a person makes an election under this article and

he is also eligible to make an election for a separate

computation under article 50 of the Income Tax Act,

that person shall be deemed to have taken the more

advantageous option under that article according to his

particular circumstances.

(d) † With respect to a married individual living with his

spouse, other than an individual in respect of whom an

election for a separate return for the purposes of article

49A of the Income Tax Act is effective references in

*Applicable as from year of assessment 2021.

†Applicable as from year of assessment 2021.

this article to an individual shall be construed as

references to the responsible spouse and references to

the income or the chargeable income of an individual

shall be construed as references to the income or the

chargeable income of both spouses.

(4)

(a) An election under this article shall be made by the

delivery to the Commissioner of a signed declaration

confirming the person’s eligibility to make the election

in terms of this article and complying with the other

provisions of this sub-article.

(b) An election shall not be deemed to have been made

under this article unless

(i)

it is made by a person to whom this article

applies;

(ii) it is made on the prescribed form and contains

such particulars and is accompanied by such

documents as may be required by that form; and

(iii) it is delivered to the Commissioner by not later

than such date as may be prescribed.

(1) Notwithstanding the provisions of articles 10, 11 and

12, but without prejudice to the other provisions of this Part, a

p er so n s h a l l n o t b e r e q u i r e d t o f u r n i sh a r e t u r n o f i n c o m e

mentioned in article 10(1) or to make an election in terms of article

12 where the Commissioner gives notice in writing to this effect to

such person.

(2) The notice mentioned in sub-article (1) shall include a

person’s income which is required to be disclosed for the purposes

of the Income Tax Acts as known to the Commissioner at the time

of service of the said notice.

(3) When a person who is served with a notice mentioned in

sub-article (1) has income required to be disclosed that is higher

than that shown in the said notice it shall be the duty of that person

to furnish a return of income under article 10(1).

(4) Where the notice mentioned in sub-article (1) results in a

refund of tax, the Commissioner shall refund such tax after the

person in receipt of such notice has agreed in writing that the

refund is due to him, and if it then results that the refund is wholly

or partly not due to the said person and that the said person has

failed to abide by the provisions of sub-article (3) the provisions of

article 48(9) shall apply.

(1) The Commissioner may when and as often as he thinks

necessary give notice in writing to any person who has filed a

return under article 10 requiring him to furnish, within a reasonable

time stated in such notice, not being less than thirty days, fuller or

further returns respecting any matter as to which a return is

required by the said article.

(2) The Commissioner may give notice in writing to any person

who has made an election under article 12 to make a return of

income and to make a self assessment under article 10 and to

comply with the other provisions of that article within a reasonable

time stated in such notice and not being less than thirty days.

(3) A person who has delivered a return of income may at any

time before an assessment is made under article 31 make such

corrections to or additions to that return as he may consider

appropriate by furnishing a further return in such manner and on

such form as may be prescribed.

(4) When a further return made pursuant to sub-article (3) with

respect to a year of assessment produces a reduction in the tax

payable by or an increase in the tax repayable to that person as

resulting from a previous return, it shall not have any effect for the

purposes of this Act if it is made later than five years from the

expiration of that year of assessment

Provided that, this sub-article shall not apply when a further

return is filed with the Commissioner for the purposes of

implementing an agreement reached pursuant to a Mutual Agreement

Procedure in terms of an arrangement in terms of article 76 of the

Income Tax Act including Convention 90/436/EEC of 23 July 1990 on

the elimination of double taxation in connection with the adjustment of

profits of associated enterprises.

(5) A person who has made an election under article 12 with

respect to a year of assessment may at any time within that year of

assessment or within five years from the expiration thereof, but

before an assessm en t is ma de un der a rt icl e 31 , furni sh th e

Commissioner with a return of income including a self-assessment

on such form as may be prescribed.

(6) When a return for a year of assessment is furnished

pursuant to and in accordance with this article it shall be deemed to

be a return of income made under article 10 and shall be read and

construed as one with any other return that may have been so made

for that same year, and any determination made under article 31

shall be revised and replaced as necessary, provided that

(a) such return shall not relieve any person of any penalty,

tax, additional tax or interest to which he may have

become liable in accordance with any provision of the

Income Tax Acts;

(b) a person who has made an election under article 12 and

who submits a return in accordance with sub-article

(2) or sub-article (5) shall not be deemed to have made

a default by reason only of the fact that the return is

submitted after the time prescribed for the purposes of

article 10(1).

(7) The Commissioner may give notice in writing to any person

informing him that an enquiry will be conducted into that person's tax

declarations and liabilities in respect of such years of assessment as

shall be indicated in the said notice.

(1) For the purpose of obtaining full information in respect

of any person’s income, the Commissioner may, notwithstanding

any other provision of this Act or of the Income Tax Act, give

notice to such person requiring him within a reasonable time to

complete and deliver to the Commissioner any return specified in

such notice and/or to attend personally or by representative before

him and to produce for examination any books, documents,

accounts and returns (including bank statements and passbooks)

which the Commissioner may deem necessary.

(2) Notwithstanding any provision of the Income Tax Acts or

any other law the Commissioner may, for the purpose of obtaining

full information in respect of any person’s income, give notice in

writing to such person requiring him to furnish the Commissioner

within the time indicated in such notice, not being less than thirty

days from the date of service of such notice, a statement containing

particulars of -

(a) all property held in his own name or in the name of his

spouse, minor children or dependents, or in any other

name, in which he is or has been interested or has or

has had a beneficial interest, or in respect of which he

has or has had the power to operate or dispose, jointly

or solely, in his own economic interest and which

property is in existence or which has existed at any

time during the period stated in the notice;

(b) all income derived from the property referred to in

paragraph (a);

(c) all other property wherever situated not referred to in

paragraph (a) and the income derived therefrom;

(d) any property transferred or delivered by him to, or

which is currently held by, any person, including a

designated person referred to in sub-article (3), during

the period or periods specified in such notice; and

(e) all facts bearing upon his liability to income tax which

he is, or has been, liable to.

(3)

(a) Where the Commissioner has reasonable grounds to

suspect that the tax has been, is, or may be evaded by any

person, he may request, by notice in writing to a

designated person, that the designated person provides

the Commissioner, within the time indicated in such

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

of service of such notice, with all such information and

documentation which the designated person may have

relating to property of any kind or description, transferred

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

or held by the designated person under any title on behalf

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

said notice or during the period specified in such notice

not commencing earlier than five (5) years from the date

of such notice.

(b) Any designated person who receives such notice shall

provide the Commissioner with the information

requested in the notice and this notwithstanding

anything to the contrary in the Income Tax Acts, any

provision of the Professional Secrecy Act, any

obligation of secrecy or confidentiality, or to any other

restriction relating to the disclosure of information

whether arising from a provision of law or any

agreement or other arrangement.

The Commissioner shall keep confidential any

information provided to him by the designated person

and shall not disclose such information to any other

person except where the Commissioner is bound at law

to effect such disclosure or where he requires to use

such information in the context of proceedings under

this Act; provided that the Commissioner may report

any act or failure by the designated person to the

relevant regulatory authority which issued a licence or

authorization to such designated person.

Any information obtained by the Commissioner shall

be used by him solely for the purpose of the

investigation being carried out by the Commissioner as

to whether tax has been, is, or may be evaded by the

relevant person being investigated and, or any related

proceedings under this Act.

(c) The Commissioner shall specify in a notice issued

under this article what information he requires and

whether with reference to the property held on the date

of the notice and, or at any point during a period of

time (not commencing earlier than five years from the

date of such notice), and the designated person

receiving the notice shall supply the following

information

(i)

details of any such property owned, possessed or

otherwise held under any title and which had

been transferred or delivered (whether directly

or indirectly through a transaction or a number

of transactions which the designated person is

aware of) to the designated person or vested in

such designated person by or on the instructions

of the person in respect of whom notice has been

given by the Commissioner to the designated

person in terms of paragraph (a); and

(ii) details of the person or persons who transferred

or delivered or made arrangements for the

designated person to receive the property or on

whose behalf the property was so transferred

delivered or vested in the designated persons

Provided that this paragraph (c) shall also apply to any

property transferred or delivered to the designated

person and is no longer held by the designated person

or has been converted into a different form of property

or has increased or decreased in value or extent or has

been transferred to another designated person, but

shall not apply where the property has been held

temporarily for the purpose of a transaction and has

been returned to the person who is being investigated.

(d) If the designated person in receipt of a notice -

(i)

has not held any property which was transferred

or delivered (whether directly or indirectly

through a transaction or a number of

transactions which the designated person is

aware of) to the designated person or vested in

such designated person by the person in respect

of whom notice has been given by the

Commissioner to the designated person in terms

of paragraph (a); or

(ii) holds or has held the aforesaid property on a

temporary basis or as a simple administrator; or

(iii) has returned the aforesaid property to the person

in respect of whom notice has been given by the

Commissioner to the designated person in terms

of paragraph (a),

he shall inform the Commissioner accordingly and

shall have no further obligations in this regard unless

the Commissioner seeks further information

specifically on such circumstances in which case the

provisions of this article shall apply mutatis mutandis.

(e)

(i)

The provisions of this sub-article shall override and

shall apply notwithstanding the provisions of any law imposing

fiduciary obligations of the designated person or associate towards any

person, including his customer, principal or other person who may

have delivered, settled, donated or otherwise transferred property to

the designated person.

(ii)

The rights of the data subject referred to in regulation

4 of the Restriction of the Data Protection (Obligations and Rights)

Regulations, in particular the right of access, shall be restricted,

partially or completely, where such a restriction is necessary and

proportionate for a designated person to adhere to his obligations

under this sub-article.

(iii) Disclosures made in the following circumstances

shall not constitute an offence under this paragraph

(A) disclosures to the Commissioner or to a person

authorised by the Commissioner;

(B) disclosures made by the designated person to an

associate or by an associate to another associate that are

necessary in order for him to comply with the Commissioner’s

request for information pursuant to this sub-article;

(C) disclosures made in the course of proceedings

instituted in any court or tribunal or administrative body against

the designated person or associate to the extent that the

disclosures are required for the proper defence of the

designated person or associate;

(D) disclosures made in the course of any proceedings

in any court or tribunal, or to any administrative body or

authority, as long as a waiver for such disclosure has been given

in writing by the Commissioner.

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

employer, partner or assistant of the designated person

but does not include the person or any of the persons

whose details are indicated in the notice issued pursuant

to this sub-article as required by sub-paragraph (ii) of

paragraph (c).

Such further notice in writing may be served on a

person either personally or by being sent by post to his

last known business or private address, and shall in the

latter case be deemed to have been served within three

working days from the date it is sent by post.

(f)

For the purposes of this article

(i)

"property" means property of any kind or

description, whether movable or immovable,

personal or real, and wherever situated, and in

relation to rights and interests whether vested,

contingent, voidable or future, and including any

money, investments, and amounts in savings,

loan and other bank accounts (whether fixed,

overdraft, current, deposit, or otherwise, and

whether business or private accounts);

(ii) a designated person is any person who may be

acting as mandatory, nominee, trustee, agent,

depository, custodian, under a contract of work

or otherwise, and includes without limitation

any of the following

(A)

a person who is in possession of a valid

licence issued in terms of the Banking Act;

or

(B)

a person who is licensed in terms of the

Investment Services Act; or

(C)

a person who is authorized in terms of the

Insurance Business Act or enrolled in the

Brokers List under the Insurance

Distribution Act; or

(D)

a person who is authorised under the

Trusts and Trustees Act to act as a trustee

or as an administrator of any private

foundation; or

(E)

advocates, notaries, legal procurators,

accountants, auditors and other persons

holding warrants to exercise a profession,

and irrespective of whether such person is in

actual possession of authorisations or is exempt

from requiring such authorisations under any

law or is acting in breach of law when holding

such property without authorisation required to

do so by applicable law;

(iii) owning, possessing and holding property

includes owning, possessing and holding with

others or through others and, or enjoying a

power to operate or dispose of such property in

such manner as renders secret the ownership

rights or interests of the person being

investigated and does not include circumstances

where such person remains registered as the

owner of the property in a public register in

Malta or where the designated person is owning,

holding or possessing the property temporarily

for the purposes of a transaction relating to or

involving such property or is otherwise a simple

administrator of such property.

(iv) Repealed by Act VIII.2021.9.

(g) Where a designated person gives any false, misleading

or incorrect information in relation to a notice issued

under this sub-article he shall be guilty of an offence

and shall, on conviction, be liable to a fine (multa) of

not less than ten thousand euro (€10,000) and not

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

A return, statement or form purporting to be furnished

under the Income Tax Acts by or on behalf of any person shall for

all purposes be deemed to have been furnished by that person or by

his authority, as the case may be, unless the contrary is proved, and

any person signing any such return, statement or form shall be

deemed to be cognizant of all matters therein.

The Commissioner may require any person having an

office or employment, whether paid or o therwise, with the

Government of Malta or with any organisation or other body

whether having a legal personality or not in which the Government

of Malta or any such body as aforesaid have a controlling interest

or over which they have effective control to supply such particulars

in respect of any matter as may be required for the purposes of the

Income Tax Acts and which may be in the possession of such

person having such office or employment

Provided that, subject to article 10A, no such person having

such office or employment as aforesaid shall, by virtue of this

article, be obliged to disclose any information in relation to a

person in respect of which such person having such office or

employment is under the duty of professional secrecy. Where any

information is protected by professional secrecy for the benefit of

any person, nothing in this proviso shall preclude the giving of such

information in respect of any other person, excluding therefrom the

name of the person in whose interest such protection is given

Repealed by Act XVIII.2021.46.

(1) Where any return, statement or form completed and

delivered to the Commissioner for the purposes of the Income Tax

Acts has been lost or destroyed, or has been so defaced or damaged

as to be illegible or otherwise useless, the Commissioner may

require the person by or on whose behalf such return, statement or

form has been completed and delivered to furnish him to the best of

his ability with a duplicate copy of such return, statement or form

or to give such information, particulars or evidence as may be

required in replacement.

(2) Nothing in this article contained shall affect the provisions

of article 30(4) and (5) or article 31(5) and (6), nor shall the

Commissioner be empowered to require a copy of any return,

statement or form, or the provision of any information, particulars

or evidence in respect of any year of assessment where the raising

of the relative assessment is statute-barred i n terms of the

provisions of the said sub-articles.

(1) Every person carrying on a trade, business, profession

or vocation shall keep proper and sufficient records of his income

and expenditure to enable his income and allowable deductions to

be readily ascertained.

(2)

The records referred to in sub-article (1) shall include

(a) proper accounts with respect to -

(i)

all sums of money received or expended and the

matters in respect of which the receipt or

expenditure takes place; and

(ii) all sales, purchases or services rendered, as well

as any other transaction, act or operation

pertaining to the trade, business, profession or

vocation;

(b) a profit and loss account or equivalent annual

statement;

(c) a statement of the assets and liabilities as on the date

on which the annual accounts of the trade, business,

profession or vocation are made up or, in the case of a

company, a balance sheet.

(3) Subject to such conditions as he may deem fit to impose,

the Commissioner may exempt any person in respect of any year of

assessment from keeping any record or statement referred to in sub-

* Applicable as from the year of assessment 2019.

article (2).

(4) The records required to be kept under the provisions of this

article shall be supported by such documents as may be appropriate

in the circumstances, including -

(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;

(b) in the case of a co-operative society, the audited

financial statements of the society, prepared in all

respects as required by the law for the time being in

force

regulating

co-operative

societies

and

accompanied by any report which is by any such law

required to accompany the audited financial statements

of the society.

(5) All records required to be kept by any of the provisions of

this article shall be retained for a period of not less than nine years

after the completion of the transactions, acts or operations to which

they relate

Provided that the provisions of this sub-article shall not

apply where effect has been given to the provisions of article 26, of

article 163(5) or of article 324(2) of the Companies Act.

(1) The Commissioner, or any officer authorised by him in

writing shall have full and free access to all business or

professional premises such as offices, factories, workshops,

warehouses, garages and land serving such purposes in order to

inspect any books, documents, accounts, returns and electronic data or

to observe and record the nature and importance of any business or

professional activity carried on there, and to check the existence of

merchandise and means of production and transport and shall have

full and free access to any property or other asset whose value is

required to be determined for any of the purposes of the Income Tax

Acts to the extent that such access is likely to assist him in determining

the said value

Provided that the Commissioner or any officer authorised

by him as aforesaid may not seize any notarial act or register, and

may not inspect public wills, the acts of delivery of secret wills and

registers thereof during the life of the testator or testators, without

the permission in writing of such testator or testators

*Applicable to accounting periods commencing on, or after 1st January 2024. Vide

article 32(2) of Act XIII of 2024.

Provided further that the Commissioner or any officer

authorised by him as aforesaid may not inspect any document or

other record which is protected by the duty of professional secrecy

or listen to any conversation or recording device which is protected

by the same duty.

(2) If, in the exercise of his powers under sub-article (1), the

Commissioner or a person authorised by him as aforesaid, requires

access to premises occupied in whole or in part for the purposes of

habitation, such access shall require the presence of an officer of

the Police of a rank not below that of inspector and shall not take

place between nine in the evening and five in the morning.

(3) The Commissioner shall, for the purpose of assessing the

tax under the Income Tax Acts, be entitled to make the application

referred to in article 68(2)(a) of the Notarial Profession and

Notarial Archives Act, and the provisions of the said sub-article (2)

shall apply to such application in so far as applicable.

(4) If any person prevents or obstructs the Commissioner or the

said officer in the execution of his duties, or refuses to comply with

any request made by the Commissioner or by the said officer in

accordance with the pro visions of this art icle, he shall , on

conviction by the Court of Magistrates, sitting as a court of

criminal judicature, be liable to a fine (multa) of not less than fifty-

eight euro (58) and not exceeding four hundred and sixty-five euro

(465) or to imprisonment for a term not exceeding six months or to

both such fine and imprisonment.

(5) The powers of investigation under this article shall not be

exercised unless the Commissioner or any officer authorised by

him, has reasonable grounds to suspect that tax is being evaded in

respect of operations carried out by the taxpayer on the premises

referred to in sub-article (1)

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

purpose the Commissioner may request the assistance of the Police

Force, who shall for such purpose exercise such powers as are vested

in them at law.

(1) Every employer when required to do so by notice from

the Commissioner shall, within the time limited by the notice,

prepare and deliver for any year a return containing -

(a) the names and places of residence of all persons

employed by him;

(b) the payments and allowances made to those persons in

respect of that employment,

and the provisions of the Income Tax Acts with respect to the

failure to deliver returns or particulars in accordance with a notice

from the Commissioner shall apply to any such return.

(2) Where the employer is a body of persons, the manager or

other principal officer shall be deemed to be the employer for the

purposes of this article, and any director of a company, or person

engaged in the management of a company, shall be deemed to be a

person employed.

(1) In this article the expression "individual to whom this

article applies" means an individual who is not domiciled in Malta

or who, if so domiciled, is not ordinarily resident therein.

(2) Where any person employs in Malta an individual to whom

this article applies and who is or is likely to be chargeable with tax

under the provisions of the Income Tax Acts, he shall give notice in

writing to the Commissioner not later than three months after the

date of the commencement of such employment, stating the full

name and address of such individual, the date of commencement

and the terms of employment.

(3) Any person ceasing to employ in Malta an individual to

whom this article applies and who is or is likely to be chargeable

with tax under the Income Tax Acts, shall give notice in writing to

the Commissioner not less than one month before such individual

ceases to be employed by him in Malta stating the name and

address of the individual and the expected date of cessation

Provided that the Commissioner may accept such shorter

notice as he may deem reasonable.

(4) Any person who employs in Malta an individual to whom

this article applies and who is to the knowledge of such person

about to leave or intending to leave Malta on termination of his

employment with such person shall give notice in writing to the

Commissioner of the expected date of departure of such individual.

Such notice shall be given not less than one month before the

expected date of departure

Provided that the Commissioner may accept such shorter

notice as he may deem reasonable.

(5) Where any person in his capacity as employer of an

individual hereinafter mentioned has in his possession any monies

which whatsoever are or may be payable to or for the benefit of an

individual to whom this article applies and who has ceased or is

about to cease to be employed by such person in Malta, he shall not

without the permission of the Commissioner, notwithstanding the

provisions of any other law, pay any part of such monies to or for

the benefit of such individual until the expiry of thirty days after

the receipt by the Commissioner of such notice as is required to be

given under sub-article (4).

(6) The Commissioner may by notice in writing whenever he

thinks fit declare any person who employs in Malta an individual to

whom this article applies, being an individual who is or is likely to

be chargeable with tax under the Income Tax Acts, to be the

representative taxpayer of such individual, and the person so

declared shall be the representative taxpayer of such individual for

the purposes of the Income Tax Acts and may be required to pay

any tax due by such individual from property or monies, including

pension, salary, wages or any remuneration which may be due by

him to such individual and, in default, such payment shall,

notwithstanding the provisions of any other law, be recoverable

from the representative taxpayer so declared by the Commissioner

in the manner provided in Part VII of this Act.

(7) Any notice to be given to the Commissioner in accordance

with the provisions of this article shall be given in addition to any

other notice to be given under article 23.

(8) Where services are rendered in Malta for any person

resident in Malta by an individual who does not have an employer

in Malta the foregoing provisions of this article shall apply to such

resident person in the same manner as if he were the employer of

the said individual.

(1) Where any person pays income chargeable under

article 4(1)(a), (b) or (d) of the Income Tax Act, or any other

income as may be prescribed, he shall, at the time of payment

deduct tax therefrom at such amount and in such manner as may be

prescribed under this sub-article or under any other provision of the

Income Tax Acts.

(2) Any tax deducted as required under sub-article (1) shall be

remitted to the Commissioner in such manner and within such

period as may be prescribed.

(3) Deductions of tax made under sub-article (1) shall be set off

for the purposes of collection against the tax chargeable on the

corresponding income for the year of assessment following that

during which the relative deductions are made, or for any other

year of assessment as the Commissioner may elect and any tax

w h i c h c a n n o t b e s e t o ff a s a f o r e s a i d s h a l l b e r e f u n d e d i n

accordance with the provisions of article 48

Provided that such tax shall not be set off or refunded as

aforesaid unless the person receiving the income has declared that

income in a return of income furnished in accordance with article

10 or made an election under article 12 for the year of assessment

following that during which the deductions were made or has

complied with such conditions that may be prescribed to the extent

that they are relevant to the income in question

Provided further that the provisions of this sub-article shall

not apply where any tax deducted as aforesaid has not been

remitted to the Commissioner and the Commissioner is satisfied

that such non-remittance was due to any fault or connivance on the

part of the person receiving the income.

(4) If any person fails to deduct tax in accordance with the

provisions of any rules referred to in sub-article (1) or after

deducting such tax, fails to pay it to the Commissioner within the

prescribed period or who otherwise fails to comply with the

provisions of such rules, he shall be liable to the prescribed

additional tax which the Commissioner is empowered to impose

under sub-article (5) hereof and where applicable he shall, in

addition, be chargeable with the tax which should have been

deducted or paid together with interest, which shall be charged as

provided in article 44(2A).

(5) Where the Commissioner has reason to believe that a

person has made a default against the provisions of any rules

referred to under this article he may at any time serve upon such

person a default notice as prescribed showing the tax which should

have been deducted or remitted together with interest and/or any

additional tax imposed upon him as aforesaid, sohowever that such

additional tax shall not exceed the amount of one thousand euro

(€1000) for every such default; and any interest and additional tax so

imposed shall be borne by the person to whom sub-article (4)

applies and shall not be recoverable by such person wholly or in

part from the person receiving the income.

(6) If any person feels aggrieved by a default notice served

upon him under sub-article (5) hereof, he may apply to the

Commissioner in writing contesting such notice in the manner and

within such period as may be prescribed.

(7) Where a person has not contested the default notice referred

to in sub-article (5) hereof or where his contestation has been

refused, the Commissioner may, where the payment of the amount

due has not already been made, serve a demand notice on such

person showing the tax which should have been deducted or

remitted together with interest and/or any additional tax imposed

upon him; and, unless the contrary is proved, the said notice shall

be sufficient evidence that the amount shown therein is the amount

due to be paid to the Commissioner by the said person

Provided that a person on whom a demand notice has been

served in consequence of a refusal by the Commissioner in

accordance with this sub-article may appeal such decision in a

court of law within fifteen days from the date of service of such

notice.

(8) The Commissioner may in his discretion remit wholly or in

part any additional tax imposed under the provisions of this article.

(9) Any additional tax imposed under the provisions of this

article shall not be deemed to be part of any tax paid or payable for

the purposes of any other article of this Act or of any article of the

Income Tax Act or any rules made thereunder.

(10) The powers conferred upon the Commissioner by this

article shall be in addition to any right conferred upon him to

c o m m e n c e p r o c e e d i n g s i n r e s p e c t o f a n o ff e n c e u n d e r t h e

provisions of sub-article (13).

(11) Notwithstanding the provisions of any other law, the

demand notice by the Commissioner referred to in sub-article (7),

showing the amount due to be paid under this article, shall

constitute a privileged claim over the assets of the employer

(including the assets of a principal officer in the case of a body of

persons) ranking immediately after the wages of employees and

claims of the Director of Social Security for any amounts due by

way of contribution under article 116 of the Social Security Act,

and shall be paid after such wages and claims in preference to all

other claims whether privileged or hypothecary.

(12) Any person to whom this article applies shall at all times

maintain proper and sufficient records as may be prescribed and

shall, whenever called upon to do so by the Commissioner or by

any public officer authorised by him in writing, produce for

inspection at such person’s premises or as otherwise directed, all

wage sheets, lists and documents and other records whatsoever

relating to any payment made by him of income chargeable under

paragraph (b) or (d) of sub-article (1) of article 4 of the Income Tax

Act, to any other income as may be prescribed, to any tax deduction

made therefrom or to the accounting of any such payment or tax

deduction

Provided that all such records shall be retained for a period

of not less than nine years after the completion of the transactions,

acts or operations to which they relate and shall be made readily

available for examination at any time during such period.

The aforesaid period of prescription shall in no case

c o m m e n c e b e f o r e su c h p e rs o n h a s f u l l y c o m p li e d w i t h t h e

provisions of this article and of any rules made thereunder.

(13) Any person who contravenes or fails to comply with the

provisions of this article or of any rules referred to in sub-article

(1) shall be liable, on conviction, to a fine (multa) of not less than

one hundred and sixteen eu ro (116) and not exceeding one

thousand and one hundred and sixty euro (1,160) or to

imprisonment for a term not exceeding six months or to both such

fine and imprisonment, and to a further fine (multa) of not less than

four euro (4) but not exceeding twenty-three euro (23) for every

day during which the offence continues after conviction

Provided that the Commissioner may compound any

offence under this sub-article and may before judgment stay or

compound any proceedings thereunder

Provided further that the offence under this sub-article shall

continue to subsist until the offender shall have conformed and

complied with the provisions of this article or of any rules referred

to therein.

(1) Where any person in any capacity whatsoever -

(a) receives any profits or income to which the provisions

of the Income Tax Acts apply which belong to some

other person; or

(b) pays to some other person, or to his order, any profits

or income to which the provisions of the Income Tax

Acts apply and which belong to such other person,

then the Commissioner may give notice to such first-named person

requiring him to furnish within the time limited by such notice, not

being less than thirty days from the date of service of such notice, a

return containing -

(i)

a true and correct statement of all such profits

and income; and

(ii) the name and address of every person to whom

the same belong or are paid

Provided that, subject to the provisions of article 10A, no

such person shall, by virtue of this article, be obliged to disclose

any information in relation to another person which he holds in the

capacity of a trustee of a trust or which is otherwise covered by the

duty of professional secrecy.

(2) A notice under sub-article (1) may be given by the

Commissioner so as to apply either generally to persons to whom

such profits or income as are mentioned in that sub-article belong

or are paid or to any particular person or class of persons as

aforesaid.

(1) The Commissioner may give notice to a trustee of a

trust requiring him to furnish, within the time limited by such

notice, not being less than thirty days from the date of service of

such notice, a return containing -

(a) a true and correct statement, certified by a warrant

holder referred to in article 57, of the income

attributable to such trust as referred to in article 27B of

the Income Tax Act; and

(b)

(i)

the names and addresses of those beneficiaries to

whom income has been allocated as provided in

article 27D(4) of the Income Tax Act, together

with the relative amounts so allocated; and

(ii) the amount, date of allocation, type and country

of source of the income so allocated for each

beneficiary referred to in subparagraph (i).

(2)

(a) A return under the provisions of this article shall be

deemed to be a return required to be furnished under

the provisions of article 10.

(b) A trustee who issues a false certificate to the

Commissioner shall be guilty of making a false

statement within the meaning of article 52(1)(b).

Where -

(a) the settlor of a trust is a person resident in Malta; and

(b) none of the trustees of such trust is a person resident in

Malta; and

(c) property is settled into such trust after such date as the

Minister responsible for finance may, by notice in the

Gazette, appoint,

the said settlor shall inform the Commissioner of the property so

settled together with a copy, where applicable, of the relevant trust

instrument or of any other document evidencing the existence of

such trust. This information shall be submitted to the

Commissioner by not later than thirty days from the date of the

relevant settlement. Any settlor who fails to comply with the

provisions of this article shall be guilty of an offence and liable on

conviction to a fine (multa) of not less than one hundred and

sixteen euro (116) and not exceeding one thousand and one

hundred and sixty euro (1,160) and to a further fine (multa) of not

less than four euro (4) but not exceeding twenty-three euro (23) for

every day during which the offence continues after the lapse of the

said thirty days.

For the purpose of ensuring compliance with the provisions

of the Income Tax Acts, the Commissioner may

(a) demand and request from any person the production of

information which, in the opinion of the

Commissioner, relates to the income or the economic

activities of any other person or class of persons;

(b) inspect and request the production of any books,

records or documents or a copy or extract thereof,

which, in the opinion of the Commissioner, relate to

the income or the economic activity of any person or

class of persons

Provided that, subject to article 10A, the information

requested under this article may not include

(i)

any information falling within the definition of a

"professional secret" or "secret" in terms of

article 2 of the Professional Secrecy Act; or

(ii) any information falling within the definition of

"sensitive personal data" in terms of article 2 of

the Data Protection Act

Provided further that, subject to article 10A, where any

such information is protected by professional secrecy or the

provisions of the Data Protection Act and such protection is for the

benefit of any person, such information in respect of any other

person shall be given excluding therefrom the name of the person

in whose interest such protection is given.

The Commissioner may give notice in writing to any

person who is the occupier of any house, property, land or

industrial building requiring him to furnish within a reasonable

time a return containing -

(a) the name and address of the owner of such house,

property, land or industrial building; and

(b) a true and correct statement of the rent payable and

any other consideration passing therefor.

The Commissioner may give notice in writing to any

person requiring him within the time limited by such notice, not

being less than thirty days from the date of service of such notice,

to furnish a return containing the name of any lodger or inmate who

is at the date of the notice resident in his house, hotel or institution,

and has been so resident, except for temporary absences,

throughout the preceding three months.

(1) Where income from any source accrues to or is

received by a partnership that is carried on by any two or more

persons jointly and the partnership is not a "company" in terms of

article 2 of the Income Tax Act (including, for the avoidance of

doubt, partnerships in respect of which no election in terms of sub-

article (6) of this article is in force), the income of any partner from

the partnership, shall be deemed to be the share to which he was

entitled during the year preceding the year of assessment in the

income of the partnership, such income being ascertained in

accordance with the provisions of the Income Tax Acts and shall be

included in the return of income to be made by such partner under

the provisions of the Income Tax Acts.

(2) The precedent partner, that is to say the partner who of the

partners resident in Malta -

(i) is first named in the agreement of partnership, or

(ii) is the precedent acting partner if the partner

named with precedence is not an acting partner,

shall, when required by the Commissioner, make and deliver a

return of the income of the partnership for any year, such income

being ascertained in accordance with the provisions of the Income

Tax Acts, and declare therein the names and addresses of the other

partners in the firm together with the amount of the share of the

said income to which each partner was entitled for that year; and -

(a) where no partner is resident in Malta, the return shall

be made and delivered by the attorney, agent, manager

or factor of the firm resident in Malta; and

(b) the provisions of the Income Tax Acts with respect to

the failure to deliver returns or particulars in

accordance with a notice from the Commissioner shall

apply to any return required under this article.

(3) Where the Commissioner is not satisfied that income from

any source accrues to or is received by two or more persons jointly,

the particular income shall be deemed to have accrued to or been

received by such person entitled to a share of such income as the

Commissioner may elect, and assessment of tax shall be made

accordingly.

(4) Where an assessment has been made in accordance with the

provisions of sub-article (3), the partnership shall not be considered

to be a body of persons for the purposes of article 60 of the Income

Tax Act.

(5) Nothing in this article contained shall prevent the decision

of the Commissioner in the exercise of any discretion given to him

from being questioned in an appeal in accordance with articles 35

and 37.

(6) Any partnership or EEIG referred to in sub-paragraph (iii)

of paragraph (a) or sub-paragraph (ii) of paragraph (b) of the

definition "company" in article 2(1) of the Income Tax Act shall be

entitled to make an election in writing to be treated as a company

for all purposes of the Income Tax Acts, and in such case, the

provisions of this article shall not be applicable thereto. Such an

election shall be made on such form and under such conditions as

the Commissioner may determine and shall be effected not later

than sixty days after the date of setting up of the partnership or

EEIG as the case may be

Provided that if no such election is made, the taxation of the

partnership or EEIG, as the case may be, shall be regulated by the

provisions of this article

Provided further that whether or not the partnership or

EEIG elects to be treated as a company or otherwise, the status of

the said partnership or EEIG shall remain effective until such time

as the Commissioner, at his sole discretion and for a reasonable

cause, authorises a change following a request in writing made by

the partnership or EEIG, as the case may be, on such form and

under such conditions as the Commissioner may determine.

(1)

Every notice which shall be given by the

Commissioner under the Income Tax Acts shall be signed by the

Commissioner or by a person appointed by him from time to time for

such purpose, and every such notice, including a receipt for payment

of tax, shall be valid if the signature of the Commissioner or of such

person is duly printed, stamped or written thereon

Provided that any notice in writing under the provisions of

the Income Tax Acts to any person requiring him to furnish

information to the Commissioner, or any other notice under the

Income Tax Acts requiring the attendance of any person or witness

before the Commissioner shall be personally signed by the

Commissioner or by any person duly authorised by him

Provided further that any notice given electronically by the

Commissioner shall not require to be signed and shall be valid if it is

(a) made available to that person through the web portal

designated by the Commissioner for this purpose; or

(b) sent to that person from any electronic address

belonging to the Commissioner, including generic

electronic addresses, or belonging to a person

authorised by the Commissioner.

(2) A signature attached to any notice and purporting to be the

signature of any person so appointed shall be taken to be the

signature of that person until the contrary be shown.

(1)

Notice may be served on a person either personally

or by electronic means to his email address as provided to the

Commissioner or made available to that person through the web portal

designated by the Commissioner for that purpose or by being sent by

post to his last known business or private address, and shall in the

latter case, unless the contrary be proven, be deemed to have been

served, in the case of persons resident in Malta, on the third (3rd) day

following the day of postage, and in the case of persons not resident in

Malta, the day subsequent to the day on which the notice would have

been received in the ordinary course by post, and in proving such

service it shall be sufficient to prove that the letter containing the

notice was properly addressed and posted

Provided that where such notice is not served because the

person could not be found or for other reasons attributable to him and

the Commissioner publishes a notice on the web portal designated for

that purpose or publishes a notice in the Gazette and in one (1) or more

daily newspapers, stating that a notice has been given and may be

collected from the location indicated by the Commissioner, then such

notice shall be deemed to have been duly served.

(2) All returns, additional information and resulting correspon-

dence and payment of tax under the provisions of the Income Tax

Acts may be sent free of postage to the Commissioner in envelopes

marked "Income Tax".

(1) Any period or date laid down in or under the Income

Tax Acts for the furnishing, delivery or service of a return, notice

or other document to or on the Commissioner or for any payment to

the Commissioner shall be deemed to expire at noon of the last day

of that period or of that date or at such later time as may be

prescribed.

(2) When the date on which a return, notice or other document

is to be furnished, delivered or served or deemed to be served or on

which a payment is to be made in terms of any provision of this Act

falls, were it not for the provisions of this sub-article, on a Saturday

or a public holiday as established in the National Holidays and

Other Public Holidays Act, that date shall be deemed to fall on the

first working day, other than a Saturday, following the said

Saturday or public holiday.

PART V

Assessments

(1) Where a person has delivered a return of income for

any year of assessment preceding the year of assessment 1999 the

Commissioner may -

1999. (a) accept the return and make an assessment accordingly;

(b) after considering such further returns, books or

evidence, if any, as may be produced before or

obtained by him, refuse to accept the return and to the

best of his judgement determine by order in writing the

amount of the chargeable income of the person and

assess him accordingly.

(2) Where a person has not delivered a return of income for any

year of assessment preceding the year of assessment 1999 and the

Commissioner is of the opinion that such person is liable to pay tax,

he may, according to the best of his judgement, determine the

amount of the chargeable income of such person and assess him

accordingly, but such assessment shall not affect any liability

otherwise incurred by such person by reason of his failure or

neglect to deliver a return.

(3) Where it appears to the Commissioner that a person has not

been assessed or has been assessed at a lesser amount than that

which ought to have been charged for any year of assessment

preceding the year of assessment 1999, the Commissioner may

assess such person at such amount or additional amount as,

according to his judgement, ought to have been charged and the

provisions of sub-article (1)(b) shall apply to such an assessment.

(4) An assessment for a year of assessment made pursuant to

any of the foregoing provisions of this article shall be made within

that year of assessment or within eight years after the expiration

thereof

Provided that in cases where there has not yet been a final

decision or a final judgement, the notification of an assessment to

the taxpayer after the expiration of the periods specified in this sub-

article shall not constitute and shall not be deemed to have ever

constituted a reason for the said assessment or notice thereof being

declared prescribed, time-barred or otherwise quashed, if such

assessment is delivered by not later than the 31st December, 2007

Provided further that where such notification is not made by

the 31st December, 2007 because the taxpayer could not be found

or for other reasons attributable to him, such assessment shall be

deemed to have been duly notified if, not later than 31st December

2008, the Commissioner publishes a notice in the Gazette and in

one or more daily newspapers stating that such assessment has been

made and inviting the taxpayer to call for it at the Department.

(5) Notwithstanding the provisions of sub-article (4), where a

person has not made to the Commissioner the returns required by

the Income Tax Acts for any year of assessment preceding the year

of assessment 1999 or a full and true disclosure of all material facts

necessary for his assessment for any such year and there has been

an avoidance of tax, the Commissioner, where he is of the opinion

that the avoidance of tax is due to fraud or evasion, may at any time

assess such person at such amount or additional amount as

according to his judgement ought to have been charged and take

action for the payment of tax, additional tax and any penalty.

(6) Where in the opinion of the Commissioner there has been

fraud or evasion as aforesaid, such decision shall be subject to

appeal under the provisions of articles 35 and 37.

(1) Where a person has delivered a return of income under

article 10 that includes a self-assessment for the year of assessment

1999 or any subsequent year of assessment, the Commissioner shall

determine the chargeable income, the tax chargeable thereon and

the tax payable by or repayable to that person for that year of

assessment in the amounts indicated by that person in the self-

assessment, making such arithmetical adjustments as may result to

be necessary on the basis of the information contained in that

return.

(2) Where a person has made an election under article 12 for a

year of assessment the Commissioner shall, on the basis of the

information in his possession, determine the chargeable income,

the tax chargeable thereon and the tax payable by or repayable to

that person for that year of assessment.

(2A) Where a person disagrees with the Commissioner’s

determination made in accordance with the provisions of sub-

articles (1) or (2), such person may file an adjustment form (AF) on

such form as the Commissioner may determine, within ten (10) years

from the date on which the person is notified of such

determination

Provided that, notwithstanding any other provision of this Act,

if the adjustment form is filed later than three months from the date of

the notification of the determination, interest shall become payable by

the Commissioner on a repayment of tax that may result to be due in

terms of the adjustment only if the repayment is paid later than one

month from the filing of the said adjustment form and shall run from

the expiration of the said period of one month.

(3) Where a person has not delivered a return of income for the

year of assessment 1999 or any subsequent year and has not made

an election under article 12 or, having made such an election has,

after being given notice by the Commissioner to make a return as

provided i n article 13, failed to fi le such a return, a nd the

Commissioner is of the opinion that such person is liable to pay tax,

he may determine the amount of the tax payable by that person for

that year of assessment on the basis of an estimate made in such

manner and by such method as the Commissioner deems fit without

prejudice to any liability otherwise incurred by that person by

reason of his failure or neglect to deliver a return.

(3A) Where an estimate has been made in the circumstances

mentioned in sub-article (3) and the return has still not been

delivered, the Commissioner may make an assessment under the

provisions of sub-article (5) on the person concerned, without the

need to have previously notified the said person that an enquiry is

being conducted into his tax declarations and liabilities.

(4) The Commissioner may make such enquiries and

verifications as he deems fit with respect to any tax payable by or

repayable to a person and m ay m ake such adjustments to a

determination made under the other provisions of this article as

may be agreed upon in writing with that person or as may be

required in accordance with article 13(6).

(5)

Where it appears to the Commissioner that the tax payable

by a person for the year of assessment 1999 or any subsequent year

of assessment has been determined at a lesser amount than that

which ought to have been charged, the Commissioner may after

considering such further returns, books or evidence, if any, as may

be produced before or obtained by him, to the best of his judgement

make an assessment of the chargeable income of that person, the

tax chargeable thereon and the tax payable by or repayable to that

person for that year of assessment, and where the Commissioner

after having made an assessment is of the opinion that any tax so

assessed has been assessed at a lesser amount than that which ought

to have been charged he may, in the same manner, make an

additional assessment or assessments

Provided that if there is evidence that, after being requested

by the Commissioner by means of a notice in writing, such person

failed to produce without any reasonable excuse any records,

documents, accounts and electronic data within thirty days from the

date of service of such notice and an order in writing by the

Commissioner referred to in article 33(5) has been issued, such

person shall not be allowed to produce such records, documents,

accounts and electronic data before the Administrative Review

Tribunal or in any Court of law.

(6) An assessment or additional assessment for a year of

assessment under sub-article (5) shall be made not earlier than the

time prescribed under article 10(1) for the submission of the return

of income for that year and not later than five years from the end of

the year in which a return of income or a further return for that year

was furnished or in which an election under article 12 for that year

was made.

(7) Notwithstanding the provisions of sub-article (6) where a

person

(a) has furnished the Commissioner with a return or

returns and has not made therein a full disclosure of all

material facts relevant to the determination of his

income and allowable deductions; or

(b) for the purpose of avoiding tax or through gross or

wilful neglect has furnished the Commissioner with a

return which is incorrect or misleading in any material

respect,

an assessment or an additional assessment under sub-article (5)

may be made at any time after the time laid down in accordance

with this Act for the submission of the return of income for that

year.

(8) A decision on the existence of any circumstance that

warrants the application of the provisions of sub-article (7) shall be

subject to appeal under the provisions of articles 35 and 37.

(9) A determination made pursuant to sub-article (1), (2) or (3)

shall not be construed as being an assessment for any of the

purposes of the Income Tax Acts.

The tax chargeable on the income of a company shall be

declared, determined, assessed and paid in the currency (or where

applicable, in currencies pro rata) in which its share capital is

denominated and any refunds and repayments made in accordance

with the provisions of the Income Tax Acts in respect of such tax

shall be made in the same currency (or, where applicable, in

currencies pro rata) in which such tax was paid.

(1) The Commissioner may for the purposes of the Income

Ta x A c t s c a n c e l a n y a s s e s s m e n t r a i s e d b y h i m , a n d s u c h

cancellation shall be without prejudice to the raising of any

assessment required to be raised under this Act in replacement of

the assessment so cancelled which shall be deemed not to have

been raised.

(2) Nothing in this article contained shall empower the

Commissioner to cancel or raise any assessment for any year where

such cancellation or raising of any assessment would involve the

opening of any matter which has been determined on appeal for that

year.

(3) Notwithstanding any other provisions of the Income Tax

Acts where more than eight years have elapsed since the expiration

of the year of assessment to which an assessment raised by the

Commissioner before 1st January, 1992 refers and such assessment

is still not final and conclusive in terms of article 38, and it appears

to the Commissioner that such assessment may be invalid or void

because of any mistake, defect or omission by the Commissioner in

making such assessment or in the notice thereof, the Commissioner

may within ten years from 1st January 1992 or within two years

from the date the taxpayer applies to the Commissioner in writing

indicating as a further ground of objection such mistake, defect or

omission raise a new assessment in terms of article 30 for the year

of assessment in question and the provisions of the Income Tax

Acts as to notice of assessment, appeal and other proceedings under

the Income Tax Acts shall apply to such an assessment and to the

tax charged thereon

Provided that

(i)

the provisions of this sub-article shall similarly

apply to those assessments which have been

raised by the Commissioner on 1st January 1992

or any subsequent date other than assessments

raised under article 31 of the Act; and

(ii) where a new assessment in terms of article 30

and to which this sub-article or paragraph (i) of

this proviso refers has not been raised by the

Commissioner within the period referred to in

this sub-article, the Commissioner may at any

time raise a new assessment on the taxpayer on

all or any part of the chargeable income of the

taxpayer as declared by him for the year of

assessment in question upon which no valid

assessment has been raised; and except for the

provisions of article 30(4), the provisions of the

Income Tax Acts as to notice of assessment,

appeal and other proceedings under the Income

Tax Acts shall apply to such assessment and to

any tax chargeable thereunder.

(1) The Commissioner shall cause to be served personally

on or sent by registered post to each person assessed to tax a notice

addressed to him at his usual place of abode or business, stating the

amount of his chargeable income and the amount of tax payable by

him and informing him of his rights under the provisions of sub-

article (2).

(2) If any person disputes the assessment he may apply to the

Commissioner, by notice of objection in writing, to review and to

revise the assessment made upon him. Such application shall state

precisely the grounds of his objection to the assessment and shall

be made within thirty days from the date of the service of the notice

of assessment

Provided that the Commissioner, upon being satisfied that

owing to absence from Malta, sickness or other reasonable cause,

the person disputing the assessment was prevented from making the

application within such period, shall extend the period as may be

reasonable in the circumstances

Provided also that no such notice may be validly entered

against any assessment unless -

(a) the return for the respective year of assessment has

been filed in terms of articles 10 and 11 before the

notice is given to the Commissioner;

(b) the tax not in dispute for the said year of assessment

has been paid in full before the time limit set out in

article 42(1) where the main income of the person for

the year immediately preceding the said year of

assessment is derived from sources other than those

falling under article 4(1)(b) and (d) of the Income Tax

Act which are subject to deduction of tax under the

PAYE rules

Provided further that where any person has already

delivered any notice under this article against any assessment and

such assessment is still not final and conclusive in terms of article

38 he shall comply with the preceding proviso hereto by the 28th

June, 1996, otherwise the notice given will be rejected and the

assessment objected to will become final and conclusive on such

date.

(3) On receipt of the notice of objection referred to in sub-

article (2), the Commissioner may require the person giving the

notice of objection to furnish such particulars or information as the

Commissioner may deem necessary with respect to the income of

the person assessed and to produce all books or other documents in

his custody or under his control relating to such income, and may

summon any person who, he thinks, is able to give evidence

respecting the assessment to attend before him and produce all

books or other documents in his custody or under his control and

may examine such person on oath or otherwise

Provided that the clerk, agent, employee or other person

confidentially employed in the affairs of the person to be charged

and the parents, spouse or children of such person shall not be

examined except on the request of the assessee

Provided further that except at the request of the assessee,

no person shall be examined in relation to any information

concerning the assessee in respect of which the said person is under

the duty of professional secrecy.

(4) In the event of any person assessed, who has objected to an

assessment made upon him, agreeing with the Commissioner as to

the amount at which he is liable to be assessed, the assessment shall

be amended accordingly, and notice of the tax payable shall be

served upon such person.

(5) If no agreement is reached the Commissioner shall

determine the tax by order in writing

Provided always that in the event of any person who, under

the provisions of sub-article (2), has applied to the Commissioner

for a revision of the assessment made upon him, failing to agree

with the Commissioner as to the amount at which he is liable to be

assessed, his right of appeal under the provisions of this Act,

against the assessment made upon him, shall remain unimpaired.

PART VI

Appeals

(1) The Administrative Review Tribunal established by

article 5 of the Administrative Justice Act, hereinafter referred to

as "the Tribunal", shall be competent to hear and determine appeals

in accordance with the provisions of article 35.

(2) The Tribunal shall carry out such functions as are assigned

to it in terms of this Act.

(3) The provisions of the Administrative Justice Act, in so far

as they apply to the Administrative Review Tribunal, shall apply to

any proceedings before the said Tribunal and the words "public

administration" in the said enactment shall be construed as a

reference to the Commissioner.

(4) The Tribunal shall have the power to summon any person to

give evidence or to produce books or other documents before it

Provided that –

(i)

the clerk, agent, employee or other person

confidentially employed in the affairs of the appellant

and the parent, spouse or children of such appellant

shall not be called to give evidence or to be examined

except on the request of the appellant;

(ii)

any person, other than the Commissioner, who has or

has had any official duty, or is or has been employed,

in the administration of the Income Tax Acts, shall not

be called to give evidence or to be examined in

connection with any official matter concerning the

assessment under appeal except on the request of the

Commissioner;

(iii) except at the request of the appellant, no person shall

be examined in relation to any information concerning

the appellant in respect of which the said person is

under the duty of professional secrecy.

(5) The Tribunal members shall not be personally liable for any

act or default of the Tribunal done or omitted to be done in good

faith in the course of the operations of the Tribunal.

(6) The provisions of article 25 of the Administrative Justice

Act shall apply to any proceedings pending before the Board of

Special Commissioners and any such proceedings shall be assigned

to the Administrative Review Tribunal in terms of the aforesaid

article 25 with effect from 1st June, 2010

Provided that any proceedings pending before the Board of

Special Commissioners and which have already commenced on the

1st June, 2010, shall remain pending before the said Board of

Special Commissioners for decision, and the provisions of this sub-

article shall not apply to those proceedings.

(1) Any person who, being aggrieved by an assessment

made upon him, has failed to agree with the Commissioner in the

manner provided in article 33(4) may enter within thirty days after

the date of service upon him of notice of the refusal of the

Commissioner to amend the assessment as desired, an appeal

against such assessment to the Administrative Review Tribunal.

(2) Every person appealing shall appear before the Tribunal

either in person or by agent on the day and at the time fixed for the

hearing of the appeal

Provided always that if it be proved to the satisfaction of

the Tribunal that owing to absence from Malta, sickness or other

reasonable cause, any person is prevented from attending at the

hearing of his appeal on the day and at the time fixed for that

purpose, the Tribunal may postpone the hearing of such appeal for

such reasonable time as it thinks necessary for the attendance of the

appellant.

(3) The onus of proving that the assessment complained of is

excessive shall be on the appellant.

(4) Subject to the provisions of sub-article (3), the Tribunal

shall confirm, reduce, increase or annul the assessment or make

such order thereon as to it may seem fit.

(5) No appeal shall lie from the decision of the Tribunal except

on a question of law only.

(6) An appeal to the Tribunal made by a taxpayer or on his

behalf cannot be withdrawn or discontinued except with the

consent of the Commissioner.

(7) The Tribunal may order the correction of any arithmetical

error incurred in any of its decisions on an application served on

the other party and filed within ten days after the date of the

decision.

The following provisions shall have effect for the purposes

of any appeal made under article 35

(a) the Tribunal shall summarily reject any appeal before

it for any year of assessment and confirm the

assessment complained of unless prima facie proof is

brought before it that, by the date on which the appeal

was entered, appellant had filed under articles 10 and

11 a return of his income chargeable for the said year

of assessment;

(b) notwithstanding the provisions of article 34(7), where

the assessment complained of has been raised by the

Commissioner in accordance with the provisions of

article 30(1)(b) or (2) or (3), or of article 31(5), no

evidence shall be considered by the Tribunal as

sufficient to warrant any change in the assessment

concerning that income if the person appealing against

the Commissioner’s decision has failed to provide

without any reasonable excuse the records, documents,

accounts and electronic data in accordance with the

proviso to article 31(5);

(c) the Commissioner may at any time during the hearing

of an appeal require a declaration by the Tribunal as to

whether the appeal should be rejected and the

assessment complained of confirmed in accordance

with the provisions of paragraph (a) or (b).

(1) Any person who, having appealed to the Tribunal feels

aggrieved by its decision may, by application filed within twenty

days from the date of the Tribunal’s decision, on a question of law

only -

(i)

where the total amount of tax, additional tax, fines and

interest in dispute at the time when the appeal was

lodged before the Tribunal is less than one million and

one hundred and sixty-five thousand euro (1,165,000),

to the Court of Appeal (Inferior Jurisdiction); and

(ii) where the total amount of tax, additional tax, fines and

interest in dispute at the time when the appeal was

lodged before the Tribunal is of one million and one

hundred and sixty-five thousand euro (1,165,000) or

more, to the Court of Appeal.

(2) The Commissioner may, if he is dissatisfied with the

decision of the Tribunal, appeal against the decision on a question

of law only to the court that is competent to take cognizance of the

a p p e a l i n a c c o r da n c e w i t h su b - a r t i c l e ( 1 ) ( i ) a n d ( i i ) b y a n

application filed within twenty days from the date of the Tribunal’s

decision.

(3) Unless rules made hereunder provide a longer period, seven

clear days’ notice shall be given to the parties of the date fixed for

the hearing of the appeal.

(4) The court may confirm, reduce, increase or annul the

assessment or make such orders thereon as it may deem fit.

(5) Notice of the amount of tax payable under the assessment

as determined by the court shall be served by the Commissioner,

either personally on, or by registered post to, the other party.

(6) The Commissioner shall publish within a reasonable time

all decisions of the court giving the facts of the appeal and the

arguments.

(7) The cost of the appeal shall be in the discretion of the Court

of Appeal or of the Court of Appeal (Inferior Jurisdiction), as the

case may be, and shall be a sum fixed by the registrar.

(8) The Minister responsible for justice may by regulations

under this sub-article establish the fees payable in the registry of

the courts in relation to the filing of judicial acts in connection with

an appeal to the Court of Appeal and to the Court of Appeal

(Inferior Jurisdiction), as the case may be, under this article

Provided that until such fees have been so established by

the Minister, the fees contained in Schedule A to the Code of

Organization and Civil Procedure shall apply.

Where no valid objection or appeal has been lodged within

the time limited by this Part against an assessment or order as

regards the amount of the chargeable income assessed thereby or

the tax rebate granted in terms of article 57 of the Income Tax Act,

or where the amount of the chargeable income or tax rebate has

been agreed to under article 33(4), or where the appeal has been

withdrawn or discontinued, or where the amount of such chargeable

income or tax rebate has been determined on objection or appeal,

the assessment or order as made or agreed to or determined on

appeal, as the case may be, shall be final and conclusive for all

purposes of the Income Tax Acts as regards the amount of such

chargeable income or tax rebate

Provided that nothing in this Part shall prevent the

Commissioner from making any refund under the provisions of

article 48 or any assessment or additional assessment for any year

of assessment which does not involve reopening of any matter

which has been determined on appeal for the year.

(1) No assessment, warrant or other proceeding purporting

to be made in accordance with the provisions of the Income Tax

Acts shall be quashed, or deemed to be void or voidable, for want

of form, or be affected by the reason of a mistake, defect or

om i s s i o n t h e r e i n , i f t h e s a m e i s i n su b s t a n c e a n d e ff e c t i n

conformity with or according to the intent and meaning of the

Income Tax Acts or any Act amending the same, and if the person

a s s e s s e d o r i n t e n d e d t o b e a s s e s s e d o r a ff e c t e d t h e r e b y i s

designated therein according to the common intent and

understanding.

(2)

An assessment shall not be impeached or affected -

(a) by reason of a mistake therein as to -

(i) the name or surname of a person liable; or

(ii) the description of any income; or

(iii) the amount of tax charged;

(b) by reason of any variance between the assessment and

the notice thereof

Provided that in cases of assessment, the notice thereof

shall be duly served on the person intended to be charged and such

notice shall contain, in substance and effect, the particulars on

which the assessment is made.

(3) In the case of a body of persons it shall be sufficient for the

purposes of the Income Tax Acts if only the name of the body of

persons appears on any notice issued thereunder by or on behalf of

the Commissioner.

(4) Where any appeal has been entered from any assessment

raised by the Commissioner and such assessment is by final

decision or judgment declared invalid or void, the Commissioner

may, within one year of the final decision or judgment as the case

may be, where a new assessment cannot be issued under any other

provision of the Income Tax Acts, raise a new assessment on the

taxpayer on all or any part of the chargeable income of the taxpayer

as declared by the taxpayer for the year of assessment in question

upon which no valid assessment has been raised; and the provisions

of the Income Tax Acts as to notice of assessment, appeal and other

proceedings under the Income Tax Acts shall apply to such

assessment and to any tax chargeable thereunder.

PART VII

Collection

(1) The following shall constitute an executive title within

the meaning and for the purposes of Title VII of Part 1 of Book

Second of the Code of Organization and Civil Procedure, namely

(a) the notice referred to in article 73(4)(c) of the Income

Tax Act;

(b) the notice referred to in article 23(7);

(c) the final and conclusive assessment or order referred

to in article 38;

(d) the notice referred to in article 42(6);

(e) the notice referred to in article 43(6);

(f)

the notice referred to in article 46(1) and the notice of

assessment and demand in writing by the

Commissioner referred to in article 46(3);

(g) the notice referred to in article 47A(2)

Provided that except in the cases referred to in paragraph

(f), the procedure laid down in articles 44(1)(b) or 44(2A)(c) shall

be followed in all cases before payment is enforced in virtue of

such title.

(2) Where in accordance with the provisions of articles

44(1)(b) or 44(2A)(c), a payment is enforceable against a body of

persons in virtue of an executive title, the Commissioner may,

without the need of any other act, proceed with such enforcement

against every officer thereof who is personally liable therefor in

terms of article 7 or of any rules made thereunder. Upon the lapse of

the period of two days mentioned in the articles referred to in this sub-

article the Commissioner shall be entitled to register in the public

registry or land registry, as the case may be, a note of privilege for the

amount demanded in the judicial act which note of privilege shall be

registered by any advocate or notary.

(1) Where notice of objection or appeal against an

assessment has been given, the tax assessed thereunder which is in

dispute may be kept in abeyance.

(2) This article shall not apply to the tax deductible in

accordance with the provisions of article 23 and to the tax payable

in accordance with the provisions of article 42(2).

(1) Tax due for any year of assessment preceding the year

of assessment 1999 shall be payable within the period ending on

the last day of the first calendar month immediately following that

during which service has been made of a notice of assessment

under article 33.

(1A) Tax chargeable for the year of assessment 1999 or any

subsequent year of assessment shall be due and payable by not later

than such date, being a date not earlier than the tax return date as

determined in accordance with article 10, during that year, in the

Income Tax Acts referred to as the "tax settlement date", as may be

prescribed.

(2) Notwithstanding anything contained in sub-article (1) and

(1A), provisional tax shall be paid to the Commissioner in the year

immediately preceding the year of assessment by every person in

respect of his liability for the year of assessment in such amount

and in such manner and on such date as may be prescribed

Provided that the provisions of this sub-article shall not

apply to the income of any body of persons arising from activities

relating or ancillary to banking, sound or television broadcasting,

film renting or insurance (excluding commissions derived from the

sale of insurance by bodies of persons residing in Malta) in respect

of the liability of such body of persons for any year of assessment

preceding the year of assessment 1990.

(3) Apart from any payment of provisional tax which may be

due under the provisions of sub-article (2) -

(a) every person shall make payments to be determined by

the Commissioner on account of the said person’s

outstanding liability to tax for any year of assessment

in such amount and in such manner and on such date as

may be prescribed; and

(b) (Deleted by XV. 2016.28).

(c) every person required to make a self assessment in

accordance with article 10(2), including any person to

whom article 12 applies but who does not make an

election under that article for that year, shall, by not

later than the tax settlement date, pay the amount, if

any, that is required to be determined in that self-

assessment as the amount of tax payable by that person

for that year of assessment;

(d) notwithstanding any other provision contained in this

Act or in any other law no person may set off against

the tax payable for a year of assessment in accordance

with paragraph (c) any amount whatsoever, including

any amount repayable to him or due to him as a credit

under the Income Tax Acts for any other year of

assessment;

(4)

(a) Payment of tax due by individuals in terms of article

90A(7)(b) of the Income Tax Act shall be made by not

later than the 30th April of the year following the

relevant year in respect of the income arising during

the period January to December of the relevant year.

This payment shall be accompanied by a statement of

accounts indicating the taxable net profits for the

relevant year.

(b) For the purposes of paragraph (a) -

"relevant year" means the year during which the

income from part-time work is earned; and

"taxable net profit" is the result of all incomes and

expenses in accordance with established accounting

practices but duly adjusted for income tax purposes.

(c) Payment of tax due by persons in terms of article 31D

of the Income Tax Act shall be made by not later than

the 30th April of the year following the relevant year,

in respect of the gross rental income received during

the period January to December of the relevant year.

This payment shall be accompanied by the relevant

form which the Commissioner may prescribe

indicating the gross rental income received for the

relevant year. For the purposes of this paragraph

"relevant year" means the calendar year during which

the gross rental income is received

Provided that in the case of an individual who

exercises the option referred to in article 31D(6A) of

the Income Tax Act, payment of tax shall be made by

not later than the 30th June 2015.

*Applicable as from the year of assessment 2019.

†Applicable as from the year of assessment 2019.

(5) If any person fails to pay any tax as prescribed under or

pursuant to this article he shall be chargeable with the tax which

should have been so paid and, in addition, with further tax or

interest as provided for in article 44, and such tax, additional tax

and interest shall be recovered from such person in the same

manner as other tax assessed and charged upon him.

(6) For the purposes of sub-article (5) a notice by the

Commissioner to any person showing the tax which should have

been paid and any additional tax and interest to which he is liable

for having failed to pay the tax shall, unless the contrary is proved,

be sufficient evidence that the amount shown in the said notice is

the amount due to be paid to the Commissioner by the said person.

(7) The powers conferred upon the Commissioner by sub-

articles (5) and (6) shall be in addition to any right conferred upon

him to commence proceedings in respect of an offence under sub-

article (8).

(8)

(a) Any person who contravenes or fails to comply with

the provisions of this article or of any rules made

thereunder shall be liable on conviction to a fine

(multa) of not less than one hundred and sixteen euro

(116) and not exceeding one thousand and one hundred

and sixty euro (1,160) and to a further fine (multa) of

not less than eleven euro (11) but not exceeding one

hundred and sixteen euro (116) for every day during

which the offence continues.

(b) The Commissioner may compound any offence under

this article and may before judgment stay or compound

any proceedings thereunder.

(9) Notwithstanding anything contained in the preceding

provisions of this article, any tax payable by an international

trading company and by a company with respect to profits allocated

to the foreign income account shall not become payable before the

earlier of

(a) the date of distribution of such profits by the company;

or

(b) eighteen months after the end of the accounting period

in which the aforesaid profits were made by the

company.

Notwithstanding anything contained in article 42, tax

payable on the income attributable to a trust as defined in article

27B of the Income Tax Act for any year of assessment, shall be

paid not later than the tax settlement date as defined in the Income

Tax Acts.

(1) In addition to the other provisions of this Part and in

particular articles 42 and 43 hereof a company shall also pay the

tax chargeable on its income in the manner set out in this article.

(2) Upon the payment of a dividend from profits allocated to

the foreign income account or the Maltese taxed account the tax

which a company is entitled to deduct in terms of article 59 of the

Income Tax Act in respect of such dividend together with any

additional tax payable in terms of article 44(1)(a), after deducting

any tax credits relative to the profits out of which the dividend is

paid excluding any tax credits relative to a claim for relief of

double taxation under the articles referred to in articles 74(a), (b)

and (c) of the Income Tax Act, shall be referred to as Advance

Company Income Tax

Provided that with effect from year of assessment 2015, the

Advance Company Income Tax shall be determined before deducting

tax credits which such company may deduct from its tax otherwise

payable other than the tax credit referred to in article 74(d) of the

Income Tax Act.

(3) The amount of Advance Company Income Tax less any

claim for relief of double taxation and any tax that the company has

paid, as at the date of payment contemplated herein, on the profits

out of which the said dividend is paid shall be paid by the company

within sixty days the end of the month following that in which the

dividend is paid.

(4) Where a dividend is paid out of profits earned in the

accounting period in which the dividend is paid the dividend shall,

for the purpose of this article, be deemed to have been paid on the

last day of that accounting period.

(5) Where a payment of Advance Company Income Tax has

been made in accordance with this article, the amount so paid,

excluding any additional tax included therein, shall be set-off

against any other future payments of tax that the company is

required to make on the profits out of which the dividend is paid.

(6) During the period from 1 January 2007 to the 31 December

2010 the provisions of this article shall only be applicable to a

company which was a company registered in Malta on or after the 1

January 2007, but was not resident in Malta before that date and to

a company in respect of which paragraph (i) of the proviso to

article 48(4A)(b) has been applied.

(1) Where any person makes a transfer of property

referred to in article 5(1)(a) of the Income Tax Act, he shall -

(a) where the transfer is a transfer to which article 5A of

the Income Tax Act applies, remit to the

Commissioner a payment of tax, if any, in such amount

and in such manner as is provided for in that article;

(b) in any other case, and irrespective of whether the gains

or profits, if any, derived from such a transfer are

chargeable under the provisions of that article or under

any other provision of the Income Tax Acts, remit to

the Commissioner within fifteen days of the relative

transfer a provisional tax payment equivalent to 7% or,

where applicable, at the rate provided for in article

5(9A) or 27G of the Income Tax Act, of the

consideration relating to the transfer of the property or

of the value of the donation

Provided that in deeds of emphyteusis or sub-

emphyteusis no account shall be taken of any yearly

ground rent or sub-ground rent payable according to

the deed

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

Provided, moreover, that notwithstanding the foregoing

provisions of this paragraph, in the case of a transfer of

securities in a property company or of an interest in a

property partnership, the provisional tax payment shall be

equivalent to such amount as may be prescribed under

this Act or under the Income Tax Act but not exceeding

thirty-five (35%) percent of the higher of the market

value and the consideration for the transfer, and for the

purpose of this proviso, the proviso to the definition

"property company" and the proviso to the definition

"property partnership" in article 2(1) of the Income Tax

Act shall be disregarded.

(2) Provisional tax under this article shall not be payable in

respect of

(a) any transfer of assets not subject to tax under the

provisions of articles 5 and 12 of the Income Tax Act

where the transferor submits to the Commissioner the

prescribed form, stating which provision is applicable,

and any other relevant documents which the

Commissioner may deem necessary

Provided that provisional tax shall in any case be paid

if article 33 of the Income Tax Act is applicable as a

result of claiming the exemption provided for under

article 12(1)(u) of the said Act;

(b) transfer of property on deeds of partition;

(c) transfer of shares in public companies.

(3) Saving the transfer of property referred to in sub-article

(1)(a), the Commissioner may authorise any person chargeable

under article 5(1)(a) of the Income Tax Act, to pay provisional tax

under this article at a rate lower than that referred to in sub-article

(1), if it can be proved that the gain is less than 20% of the

consideration or of the value of the donation as the case may be

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.

(4)

(a) The tax paid by a person in respect of transfers referred

to in sub-article (1)(a), shall not be available as a

credit against that person’s tax liability or for a refund,

as the case may be, for the relevant year of assessment.

Such tax shall be separate and distinct from that paid

or a payable under the provisions of article 42 and he

shall not be required to declare any such income, in

any return made pursuant to the Income Tax Acts.

(b) Any provisional tax paid for the purposes of sub-article

(1)(b), during or in respect of the year preceding any

year of assessment, shall be set off for the purpose of

collection against the tax charged in respect of the said

year of assessment and if there is an excess after the

aforesaid set-off has been made, such excess shall be

refunded in accordance with the provisions of article

(1) Jekk xi taxxa li għandha titħallas fiż-żminijiet stabbiliti

fl-artikolu 42(1) jew (2) jew fl-artikolu 43(1)(b) ta’ dan l-Att jew fl-

artikolu 9A(8) ta l -Att dwar it-Taxxa fuq l-Income ma titħallasx fil-

perijodu rilevanti-

(a) taxxa addizzjonali li tkun daqs wieħed fil-mija tat-

taxxa mhux imħallsa għal kull xahar kalendarju jew

parti minnu li matulu dik it-taxxa tibqa’ mhux imħallsa

għandha tiżdied magħha, u d-disposizzjonijiet tal-Atti

dwar it-Taxxi, dwar il-ġbir u l-ħlas tat-taxxa jkunu

jgħoddu għall-ġbir u għall-ħlas ta’ dik it-taxxa

addizzjonali;

(b) il-Kummissarju għandu jinnotifika nota ta’ talba lill-

persuna intaxxata, u jekk ma jsirx il-ħlas fi żmien tletin

jum mid-data tan-notifika ta’ dik in-nota ta’ talba, il-

Kummissarju jista’ jipproċedi għall-infurzar tal-ħlas

bis-saħħa tat-titolu eżekuttiv imsemmi fl-artikolu 40

wara jumejn min-notifika lid-debitur ta’ intimazzjoni

għall-ħlas magħmula permezz ta’ att ġudizzjarju, jew

kif hawn ’il quddiem provdut;

(ċ) taxxa addizzjonali mwaħħla skont dan is-subartikolu

ma għandhiex titqies li hi parti minn xi taxxa mħallsa

jew li għandha titħallas għall-finijiet tal-artikoli 59,

73, 76 jew 89 tal-Att dwar it-Taxxa fuq l-Income, jew

tal-artikoli 23, 43, 5l jew 52, jew ta’ xi regoli

magħmula bis-saħħa tagħhom.

(2) Il-Kummissarju jista’, fid-diskrezzjoni tiegħu, jaħfer għal

kollox jew f’parti kull taxxa addizzjonali li għandha titħallas skont

is-subartikolu (1)

Iżda ma għandha ssir ebda maħfra bħal dik mill-

Kummissarju jekk hu ma jkunx sodisfatt li l-persuna li jkollha

tħallas it-taxxa ma setgħetx tagħmel il-ħlas fiż-żminijiet rispettivi

minħabba li kienet nieqsa minn Malta jew għax kienet marida

s e r j a m e n t j e w m i n ħ a b b a d i k i r- r a ġ u n i l - o ħ r a l i l - M i n i s t r u

responsabbli għall-finanzi jista’ minn żmien għal żmien

jippreskrivi.

(2A) Meta xi taxxa mhijiex imħallsa sad-data ta’ meta għandha

titħallas skont id-dispożizzjonijiet relattivi tal-Atti dwar it-Taxxa -

(a) għandu jitħallas fuqha imgħax bir-rata ta’ wieħed fil-

mija tat-taxxa mhux imħallsa, mid-data ta’ settlement

ta’ taxxa għal kull xahar kalendarju jew parti minnu li

matulu dik it-taxxa tibqa’ ma titħallasx u d-

disposizzjonijiet tal-Atti dwar it-Taxxi li jirrigwardaw

il-ġbir ta’ taxxa għandhom ikunu japplikaw għall-ġbir

u rkupru ta’ dak l-imgħax

Iżda għal kull perjodu jew parti minnu li jibda fi jew wara

l-1 ta’ Jannar 2009, l-imgħax jiġi kalkulat bir-rata ta’ żero

punt sebgħa ħamsa fil-mija (0.75%) kull xahar jew parti

minnu u l-ammont totali tal-imgħax ma għandux jeċċedi

l-ammont tal-imsemmija taxxa

Iżda wkoll, għal kull perjodu jew parti minnu li jibda fi

jew wara l-1 ta’ Jannar 2014, l-imgħax jiġi kkalkulat bir-

rata msemmija fil-proviso ta’ qabel dan jew b’dik ir-rata

mnaqqsa kif il-Ministru jista’, minn żmien għal żmien,

jippreskrivi permezz ta’ regoli u l-ammont totali tal-

imgħax ma għandux jeċċedi l-ammont tal-imsemmija

taxxa

Iżda wkoll meta d-data sa meta t-taxxa għandha titħallas

skont id-dispożizzjonijiet relevanti tal-Atti dwar it-Taxxi

tkun il-31 ta’ Awwissu 2022 jew data aktar tard, l-imgħax

għandu jitħallas bir-rata ta’ żero punt sitta fil-mija (0.6%)

għal kull xahar jew parti minnu li matulu t-taxxa tibqa’

mhux imħallsa jew b’dik ir-rata oħra kif il-Ministru jista’,

minn żmien għal żmien, jippreskrivi b’regoli u l-imgħax

totali ma għandux jeċċedi l-ammont tat-taxxa msemmija;

(b) l-ammont ta’ taxxa muri bħala li għandu jitħallas għal

sena ta’ stima minn persuna f’determinazzjoni jew

stima li ssir taħt l-artikolu 31 għandu, kemm-il darba u

sakemm ma jiġix sostitwit b’xi ammont ieħor permezz

ta’ determinazzjoni jew stima sussegwenti, jitqies li

jkun it-taxxa li għandha titħallas għal dik is-sena ta’

stima għall-għan tal-paragrafu (a) tkun liema tkun id-

data meta l-imsemmija determinazzjoni ssir jew meta

l-istima ssir waħda finali u konklużiva;

(ċ) il-Kummissarju għandu jinnotifika avviż ta’ talba lill-

persuna li minnha hi dovuta xi taxxa u jekk ma jsirx

ħlas fi żmien tletin jum mid-data tan-notifika ta’ dak l-

avviż ta’ talba, il-Kummissarju jista’ jipproċedi biex

jesegwixxi għall-ħlas bis-saħħa tat-titolu eżekuttiv

imsemmi fl-artikolu 40 wara jumejn min-notifika li

ssir lid-debitur ta’ talba għall-ħlas permezz ta’ att

ġudizzjarju.

(2B) Minkejja d-disposizzjonijiet tas-subartikolu (2A)

(a) ma għandu jgħaddi ebda imgħax fuq xi taxxa li

għandha titħallas minn persuna għal xi sena ta’ stima

jekk il-Kummissarju jkun iddetermina u ordna

permezz ta’ avviż bil-miktub mogħti lil min għandu

jħallas skont ir-regoli magħmulin b’mod konformi

ma’, u skont l-artikolu 23 illi għandu jsir kull tnaqqis

mill-emolumenti li jitħallsu lil dik il-persuna sabiex

tinġabar dik it-taxxa u kemm-il darba dak l-avviż ma

jkunx ġie revokat permezz ta’ avviż bil-miktub lil dik

il-persuna;

(b) ebda imgħax ma għandu jgħaddi fuq xi taxxa

addizzjonali li tiġi intaxxata skont id-disposizzjonijiet

tal-artikolu 56(12) tal-Att dwar it-Taxxa fuq l-Income;

(ċ) ma għandu jgħaddi ebda imgħax fuq xi taxxa li

għandha titħallas fiċ-ċirkostanzi meta persuna ħadet

azzjoni taħt Proċedura għall-Ftehim Reċiproku skont

ftehim imsemmi fl-artikolu 76 tal-Att dwar it-Taxxa

fuq l-Income inkluża l-Konvenzjoni 90/436/KEE tat-

23 ta’ Lulju 1990 fuq l-eliminazzjoni tal-ħlas għal

taxxa doppja f’konnessjoni mat-tiswija ta’ profitti ta’

intrapriżi assoċjati, għall-perjodu bejn id-data meta l-

imsemmija azzjoni taħt il-Proċedura għall-Ftehim

Reċiproku tibda u d-data meta l-kwistjoni tiġi

konkluża taħt l-imsemmija proċedura;

(d) L-ebda imgħax ma jibda jiddekorri fuq kull taxxa

mħallsa lill-Kummissarju meta n-nuqqas ta’ ħlas ta’

tali taxxa jirrendi tali individwu responsabbli għat-

taxxa addizzjonali kif previst fis-subartikolu (1) ta’

dan l-artikolu jew fl-artikolu 73(4) tal-Att dwar it-

Taxxa fuq l-Income.

(2Ċ) Imgħax li għandu jitħallas taħt is-subartikolu (2A) ma

għandux jitqies bħala parti minn xi taxxa jew taxxa addizzjonali

mħallsa jew li għandha titħallas għal xi wieħed mill-għanijiet tal-

Atti dwar it-Taxxi.

(2D) Il-Kummissarju jista’, fid-diskrezzjoni tiegħu, jaħfer għal

kollox jew f ’parti l-interessi li għandhom jitħallsu skont is-

subartikolu (2A), skont regoli maħruġa apposta għal dan il-għan

mill-Ministru responsabbli għall-finanzi.

(3) Ebda oppożizzjoni ħlief dik speċifikament imsemmija f’dan

l-Att ma għandha twaqqaf il-ħruġ jew l-eżekuzzjoni ta’ xi att

esekuttiv miksub taħt dan l-Att jew il-ħlas mir-rikavat minn xi

mandat jew bejgħ b’irkant imwettaq skont dak l-att esekuttiv.

(4) Id-disposizzjoni tas-subartikolu (3) ma tkunx ta’

preġudizzju għall-ammont ta’ taxxa li tiġi stabbilita bħala finali

skont id-disposizzjonijiet l-oħra tal-Atti dwar it-Taxxi.

Meta l-ħlas tat-taxxa jkun ġie miżmum skont id-

disposizzjonijiet tal-artikolu 41 sa ma joħroġ ir-riżultat ta’ avviż ta’

oġġezzjoni jew ta’ appell, it-taxxa li tkun għadha ma tħallsitx skont

il-likwidazzjoni stabbilita fuq dik l-oġġezzjoni jew dak l-appell,

skont il-każ, għandha titħallas sa dak iż-żmien li jispiċċa fl-aħħar

jum tax-xahar kalendarju li jaħbat minnufih wara dak li matulu

jkun ġie notifikat l-avviż tat-taxxa li jkollha titħallas, u jekk dik it-

taxxa ma titħallasx sa dak iż-żmien, għandhom japplikaw id-

disposizzjonijiet tal-aħħar artikolu qabel dan

Iżda ebda ħaġa f’dan l-artikolu jew fl-artikolu 41

m’għandha titqies li tissospendi li jgħaddi l-imgħax fuq it-taxxa li

tkun għadha ma tħallsitx kif imsemmi qabel u għall-finijiet tal-

artikolu 44(2A) l-imsemmija taxxa għandha titqies bħala taxxa li

kellha titħallas sa mhux aktar tard mid-data ta’ settlement ta’ taxxa

relattiva.

(1) Jekk f’xi każ partikolari, il-Kummissarju għandu

għalfejn jaħseb illi persuna li ġiet intaxxata tista’ titlaq minn Malta

qabel ma’ dik it-taxxa jkollha titħallas taħt id-disposizzjonijiet tal-

Atti dwar it-Taxxi mingħajr ma tkun ħallset dik it-taxxa, huwa

jista’, b’avviż bil-miktub, lil dik il-persuna jitlob il-ħlas ta’ dik it-

taxxa fi żmien li jkun stabbilit f’dak l-avviż. Dik it-taxxa għandha

fuq hekk titħallas f ’egħluq iż-żmien hekk stabbilit u għandha

f ’nuqqas ta’ ħlas, kemm-il darba garanzija għall-ħlas tagħha ma

tinġiebx b’sodisfazzjon tal-Kummissarju, tinġabar minnufih bil-

mod preskritt fl-artikolu 44.

(2) Jekk f’xi każ partikolari, il-Kummissarju jkollu għalfejn

jaħseb illi taxxa fuq xi income taxxabbli tista’ ma tiġix miġbura,

huwa jista’ f’kull żmien, u skont kif jitlob il-każ -

(a) minnufih b’avviż bil-miktub jeħtieġ lil xi persuna

sabiex tagħmel prospett u sabiex tagħti informazzjoni

ta’ kull income bħal dak fi żmien li jkun speċifikat

f’dak l-avviż;

(b) jagħmel stima tat-taxxa dwar dik il-persuna fl-ammont

tal-income miġjub fil-prospett jew, jekk ma

jintbagħatx dak il-prospett jew jekk il-Kummissarju

ma jkunx sodisfatt b’dak il-prospett, f’dak l-ammont

illi l-Kummissarju jaħseb li hu xieraq;

(ċ) b’avviż bil-miktub lill-persuna intaxxata jitlob li

tinġieb minnufih garanzija għall-ħlas tat-taxxa stmata,

għas-sodisfazzjon tiegħu.

(3) Lill-persuna intaxxata għandu jingħata avviż ta’ stima

magħmula skont id-disposizzjonijiet tas-subartikolu (2), u kull

taxxa hekk stmata (skont id-disposizzjonijiet tas-subartikolu (2))

għandha titħallas fuq talba magħmula bil-miktub minn idejn il-

Kummissarju u, jekk ma jsirx il-ħlas, kemm-il darba ma tinġiebx

garanzija għas-sodisfazzjon tal-Kummissarju, għandha tinġabar

minnufih bil-mod preskritt fl-artikolu 47.

(4) Kull persuna li tkun ħallset it-taxxa skont talba magħmula

mill-Kummissarju jew illi tkun ġiebet garanzija għal dak il-ħlas

taħt is-subartikolu (2) jkollha l-jeddijiet ta’ oġġezzjoni u ta’ appell

mogħtijin bl-artikoli 33, 35 u 37 u l-ammont imħallas minnha

għandu jkun aġġustat skont ir-riżultat ta’ xi oġġezzjoni jew appell

bħal dawk.

(5) Id-disposizzjonijiet tas-subartikolu (2) ma jnaqqsux is-

setgħa mogħtija lill-Kummissarju bl-artikoli 30 u 3l.

(1) It-taxxa tista’ ssir kawża dwarha u tinġabar, skont il-

każ, fil-Prim’Awla tal-Qorti Ċivili jew fil-Qorti tal-Maġistrati

(Malta) fil-ġurisdizzjoni ċivili tagħha jew fil-Qorti tal-Maġistrati

(Għawdex) wkoll fil-ġurisdizzjoni ċivili tagħha, mill-Kummissarju

fil-kwalità uffiċjali tiegħu, bl-ispejjeż kollha tal-kawża, mingħand

il-persuna mressqa għal hekk, mingħand il-persuna li għandha

tħallasha jew mingħand il-persuna responsabbli għat-tnaqqis

tagħha bħala dejn.

(2) Salv kif xort’oħra espressament provdut fl-Atti dwar it-

Taxxi u salvi b’mod partikolari d-disposizzjonijiet tal-artikolu

30(5) u tal-artikolu 31(7), l-azzjoni għall-ħlas tat-taxxa, taxxa

addizzjonali, imgħax jew xi penali tista’ tinbeda f’kull żmien mid-

data minn meta jsiru dovuti u għandhom jitħallsu sa tmien snin

minn dik id-data jew, meta tkun saret stima għar-rigward tagħhom,

mid-data meta dik l-istima ssir finali u konklużiva.

(3) Iż-żmien imsemmi fis-subartikolu (2) jitwaqqaf b’talba

għal ħlas notifikata permezz tal-posta reġistrata mill-Kummissarju

jew b’att ġudizzjarju preżentat mill-Kummissarju qabel ma jiskadi

dak iż-żmien li fihom jintalab il-ħlas tal-ammont dovut.

(4) Meta l-azzjoni msemmija fis-subartikoli (2) u (3) ma tkunx

ittieħdet fiż-żmien hemm stipulat, u dak iż-żmien jiskadi fil-31 ta’

Diċembru, 2003 jew qabel dik id-data, għaldaqstant, minkejja d-

disposizzjonijiet ta’ dawk is-subartikoli, l-azzjoni għall-ħlas ta’ dik

it-taxxa, taxxa addizzjonali, mgħax jew penali tista’ tittieħed sal-31

ta’ Diċembru, 2005.

(1) Il-Kummissarju għandu jagħti l-għajnuna tiegħu lil

awtoritajiet barranin tat-taxxa fit-talbiet għal ġbir ta’ taxxa skont

id-disposizzjonijiet tal-arranġamenti applikabbli msemmija fl-

artikolu 76 tal-Att dwar it-Taxxa fuq l-Income fejn dawn jeżistu.

(2) Għall-finijiet tas-subartikolu (1), avviż mill-Kummissarju

lil xi persuna li juri l-ammont tat-talba għal ġbir ta’ taxxa dovuta

minnha lil awtorità barranija tat-taxxa minħabba f’nuqqas ta’ ħlas

tal-imsemmi ammont għandha tkun prova biżżejjed illi l-ammont

muri fl-imsemmi avviż huwa l-ammont dovut li għandu jitħallas

lill-awtorità barranija tat-taxxa mill-imsemmija persuna.

(3) Għall-finijiet ta’ dan l-artikolu, l-arranġamenti dwar il-ġbir

ta’ taxxa għandhom jistabbilixxu t-tifsira ta’ "taxxa" u "talbiet għal

ġbir ta’ taxxa".

TAQSIMA VIII

Rifużjoni

Such provisional tax shall be separate and distinct

from that paid or payable under the provisions of

article 42 except for persons who have gains or profits

from immovable property falling under article 4(1)(a)

of the Income Tax Act

Provided that the tax paid and referred to in paragraph (b)

of this sub-article shall not be set off or refunded as aforesaid

unless the person who has paid the tax has declared the relative

gains or profits from the transfer in a return of income furnished in

accordance with article 10 for the year of assessment following that

during which the gains or profits from the said transfer were

derived.

(5) If any person fails to pay any provisional tax, as the case

may be, as provided under this article he shall be chargeable with

the tax which should have been so paid and, in addition, with

further tax as provided for in article 44(1)(a), and such tax and

additional tax shall be recovered from such person in the same

manner as other tax assessed and charged upon him.

(6) For the purposes of sub-article (5) a notice by the

Commissioner to any person showing the tax which should have

been paid and any additional tax to which he is liable for having

failed to pay the tax shall, unless the contrary is proved, be

sufficient evidence that the amount shown in the said notice is the

amount due to be paid to the Commissioner by the said person.

(7) The powers conferred upon the Commissioner by sub-

articles (5) and (6) shall be in addition to any right conferred upon

him to commence proceedings in respect of any offence under sub-

article (8).

(8) Any person who contravenes or fails to comply with the

provisions of this article shall be liable on conviction to a fine

(multa) of not less than one hundred and sixteen euro (116) and not

exceeding one thousand and one hundred and sixty euro (1,160) or

to imprisonment for any term not exceeding six months or to both

such fine and imprisonment, and to a further fine (multa) of not less

than four euro (4) but not exceeding twenty-three euro (23) for

every day during which the offence continues after conviction

Provided that the Commissioner may compound any

offence under this article and may before judgment stay or

compound any proceedings thereunder.

(9)

(a) The tax or provisional tax, as the case may be, payable

under this article shall be paid in such manner as may

be prescribed.

(b) Notwithstanding anything that may be provided for in

the rules where immovable property or any rights

annexed thereto are transferred by means of a public

deed the notary publishing such deed shall have the

same duties and liability in connection with the

collection and payment of the tax or provisional tax, as

the case may be, payable on such deed in accordance

with this article as are by the Duty on Documents and

Transfers Act imposed on notaries publishing such

deeds, in connection with the duty chargeable and

collected on transfers in accordance with that Act. Any

failure by a notary in connection with the collection

and payment of tax or provisional tax, as the case may

be, under this article shall for all purposes of the Duty

on Documents and Transfers Act, be deemed to be a

failure of his duties under that Act.

(c) Where any assets the transfer of which is subject to tax

on capital gains under article 5 of the Income Tax Act,

is sold in a judicial auction, the Registrar of Courts

shall have the same duties with regard to the

withholding and payment of the tax or provisional tax,

as the case may be, under this article as are under

article 66 of the Duty on Documents and Transfers Act

imposed on him in relation to the duty leviable on

transfers causa mortis under the said Act.

44. (1) Where any tax payable within the periods provided for

in article 42(1) or (2) or in article 43(1)(b) of this Act or in article

9A(8) of the Income Tax Act, is not settled within the relevant

period -

(a) additional tax equal to one per cent of the unpaid tax

for each calendar month or part thereof during which

such tax remains unpaid shall be added thereto, and the

provisions of the Income Tax Acts relating to the

collection and recovery of tax shall apply to the

collection and recovery of such additional tax;

(b) the Commissioner shall serve a demand note upon the

person assessed, and if payment is not made within

thirty days from the date of the service of such demand

note, the Commissioner may proceed to enforce

payment in virtue of the executive title referred to in

article 40 after two days from the service on the debtor

of an intimation, for payment made by means of a

judicial act, or as hereafter provided;

(c) additional tax charged under this sub-article shall not

be deemed to be part of any tax paid or payable for the

purposes of articles 59, 73, 76 or 89 of the Income Tax

Act, or articles 23, 43, 51 or 52, or any rules made

thereunder.

(2) The Commissioner may, in his discretion, remit wholly or

in part any additional tax chargeable under sub-article (1)

Provided that no such remission shall be effected by the

Commissioner unless he is satisfied that the person liable for the

payment of the tax was prevented from making payment within the

respective periods owing to his absence from Malta or serious

sickness or for such other cause as the Minister responsible for

finance may prescribe from time to time.

(2A) When any tax is not paid by the date on which it is payable

in terms of the relevant provisions of the Income Tax Acts -

(a) interest at the rate of one per cent of the unpaid tax

shall be charged thereon from the tax settlement date

for each calendar month or part thereof during which

such tax remains unpaid and the provisions of the

Income Tax Acts relating to the collection and

recovery of tax shall apply to the collection and

recovery of such interest

Provided that for any period or part thereof commencing

on or after 1st January 2009, interest shall be calculated

at the rate of point seven five percent (0.75%) per month

or part thereof and the total interest shall not exceed the

amount of the said tax

Provided further that, for any period or part thereof

commencing on or after 1st January 2014, interest shall

be calculated at the rate mentioned in the preceding

proviso or at such lower 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

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;

(b) an amount of tax shown as payable for a year of

assessment by a person in a determination or an

assessment made under article 31 shall unless and until

it is substituted by another amount by means of a

subsequent determination or assessment be deemed to

be the tax payable for that year of assessment for the

purpose of paragraph (a) regardless of the date when

the said determination is made or when the assessment

becomes final and conclusive;

(c) the Commissioner shall serve a demand note upon the

person by whom any tax is due and if payment is not

made within thirty days from the date of the service of

such demand note, the Commissioner may proceed to

enforce payment in virtue of the executive title

referred to in article 40 after two days from the service

on the debtor of an intimation for payment made by

means of a judicial act.

(2B) Notwithstanding the provisions of sub-article (2A)

(a) no interest shall run on any tax payable by a person for

any year of assessment if the Commissioner has

determined and directed by notice in writing given to a

payor in accordance with rules made pursuant to

article 23 that deductions be made from emoluments

payable to that person to cover the said tax and if that

notice has not been revoked by a notice in writing

given by the Commissioner to that person;

(b) no interest shall run on any additional tax charged

pursuant to the provisions of article 56(12) of the

Income Tax Act;

(c) no interest shall run on any tax payable in

circumstances where a person has taken action under a

Mutual Agreement Procedure in terms of an

arrangement referred to in article 76 of the Income Tax

Act including Convention 90/436/EEC of 23 July 1990

on the elimination of double taxation in connection

with the adjustment of profits of associated

enterprises, for the period between the date when the

said action under the Mutual Agreement Procedure is

initiated and the date when the issue is concluded

under the said procedure;

(d) No interest shall run on any tax payable by any person

to the Commissioner when the non-payment of that tax

renders that person liable to additional tax as provided

for in sub-article (1) of this article or in article 73(4) of

the Income Tax Act.

(2C) Interest charged under sub-article (2A) shall not be deemed

to be part of any tax or additional tax paid or payable for any of the

purposes of the Income Tax Acts.

(2D) The Commissioner may, at his discretion, remit wholly or

in part any interest chargeable under sub-article (2A) in accordance

with rules issued for this purpose by the Minister responsible for

finance.

(3) No opposition other than that specifically provided for in

this Act shall stay the issue or execution of any executive act

obtained thereunder or the paying out of the proceeds of any

warrant or sale by auction carried out in pursuance thereof.

(4) The provisions of sub-article (3) shall not prejudice the

amount of tax that may be finally determined under the other

provisions of the Income Tax Acts.

45. Where payment of tax is kept in abeyance in accordance

with the provisions of article 41 pending the result of a notice of

objection or of an appeal, the tax outstanding under the assessment

as determined on such objection or appeal, as the case may be, shall

be payable within the period ending on the last day of the calendar

month immediately following that during which service of the

notification of tax payable has been made, and if such tax is not

paid within such period the provisions of the last preceding article

shall apply

Provided that nothing in this article or in article 41 shall be

c on s t r u e d a s su s p e n d in g th e r u n ni n g o f in t e r e s t o n t h e t a x

outstanding as aforesaid and 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.

46. (1) If in any particular case, the Commissioner has reason

to believe that a person who has been assessed to tax may leave

Malta before such tax becomes payable under the provisions of the

Income Tax Acts without having paid such tax, he may by notice in

writing to such person demand payment of such tax within a time to

be limited in such notice. Such tax shall thereupon be payable at the

expiration of the time so limited and shall in default of payment,

unless security for payment thereof be given to the satisfaction of

the Commissioner, be recovered forthwith in the manner provided

by article 44.

(2) If in any particular case, the Commissioner has reason to

believe that tax upon any chargeable income may not eventually be

recovered, he may at any time and as the case may require -

(a) forthwith by notice in writing require any person to

make a return and to furnish particulars of any such

income within a time to be specified in such notice;

(b) make an assessment upon such person in the amount of

the income returned or, if default is made in making

such return or the Commissioner is dissatisfied with

such return, in such amount as the Commissioner may

think reasonable;

(c) by notice in writing to the person assessed require that

security for the payment of the tax assessed be

forthwith given to his satisfaction.

(3) Notice of any assessment made in accordance with the

provisions of sub-article (2) shall be given to the person assessed,

and any tax so assessed (in accordance with the provisions of sub-

article (2)) shall be payable on demand made in writing under the

hand of the Commissioner and shall in default of payment, unless

security for the payment thereof be given to the satisfaction of the

Commissioner, be recoverable forthwith in the manner provided by

article 47.

(4) Any person who has paid the tax in accordance with a

demand made by the Commissioner or who has given security for

such payment under sub-article (2) shall have the rights of

objection and appeal conferred by articles 33, 35 and 37 and the

amount paid by him shall be adjusted in accordance with the result

of any such objection or appeal.

(5) The provisions of sub-article (2) shall not affect the powers

conferred upon the Commissioner by articles 30 and 31.

47. (1) Tax may be sued for and recovered, as the case may

require, in the Civil Court, First Hall, or in the Court of Magistrates

(Malta) in its civil jurisdiction or in the Court of Magistrates

(Gozo), also in its civil jurisdiction by the Commissioner in his

official name with full costs of suit from the person charged

therewith, from the person by whom it is payable or from the

person responsible for its deduction as a debt.

(2) Save as otherwise expressly provided in the Income Tax

Acts and saving in particular the provisions article 30(5) and of

article 31(7), action for the payment of tax, additional tax, interest

or any penalty may be taken during any time from the date on

which it becomes due and payable up to eight years from that date

or, where an assessment in respect thereof has been made, from the

date on which that assessment becomes final and conclusive.

(3) The running of the period referred to in sub-article (2) shall

be interrupted by a demand note served through registered post by

the Commissioner or by any judicial act filed by the Commissioner

before the expiration of such period demanding the payment of the

amount claimed.

(4) Where the action referred to in sub-articles (2) and (3) has

not been taken within the time specified therein, and such time

expires on or before the 31st December 2003, then, notwithstanding

the provisions of the said sub-articles, action for the payment of the

said tax, additional tax, interest or penalty may be taken until the

31st December 2005.

47A. (1) The Commissioner shall lend assistance to foreign tax

authorities in the collection of revenue claims in accordance with

the provisions of applicable arrangements referred to in article 76

of the Income Tax Act where these exist.

(2) For the purposes of sub-article (1), a notice by the

Commissioner to any person showing the amount of a revenue

claim by a foreign tax authority to which he is liable for having

failed to pay the said amount shall be sufficient evidence that the

amount shown in the said notice is the amount due to be paid to the

foreign tax authority by the said person.

(3) For the purposes of this article, the arrangements in relation

to the collection of taxes shall determine the meaning of "taxes"

and "revenue claims".

PART VIII

Refunds

48. (1) If it be proved to the satisfaction of the Commissioner

that any person for any year of assessment has paid tax, by

deduction or otherwise, in excess of the amount with which he is

properly chargeable, such person shall be entitled to have the

amount so paid in excess refunded by the Commissioner. Every

claim for repayment under this article should be made within four

years from the date on which the assessment in respect of the year

of assessment to which it relates becomes final and conclusive

Provided that in the case of a person making a claim for

repayment for any year of assessment in respect of which he has no

chargeable income, such claim shall be made within four years

from the end of the year of assessment to which the claim relates

Provided also that where the claim relates to tax paid for

the year of assessment 1999 or any subsequent year of assessment

*Applicable as from year of assessment 2021.

it shall be made within five years from the relevant tax return date

or, where an assessment in respect thereof has been made from the

date on which that assessment becomes final and conclusive

Provided further that in no case shall any refund be made in

respect of -

(a) any tax which a company has deducted or is entitled to

deduct from any dividend paid to any person who in

virtue of any exemption granted by or under any law is

not chargeable to tax thereon; and

(b) any tax charged on any body of persons under article

56(4) of the Income Tax Act, or under article 27(3) and

(4); and

(c) any tax which a company has deducted or is entitled to

deduct from any dividend paid to a collective

investment scheme.

For the purposes of this proviso -

"company" includes a collective investment scheme; and

"dividend" includes any distribution made by a collective

investment scheme.

(1A) Notwithstanding the provisions of sub-article (1), in no

case shall any refund be made to any person in respect of the year

of assessment 1999 or any subsequent year of assessment unless

and until such person has filed all tax returns, which are required to

be furnished under this Act, in respect of the years of assessment

1999 up to and including the year of assessment preceding the year

in which the refund would have been payable but for the

application of this sub-article and, in the case of a person who is a

payer as defined in the Final Settlement System (FSS) Rules, he has,

moreover, submitted all the Payer’s Annual Reconciliation Statements

together with the Payee Statements of Earnings in accordance with the

said rules in respect of the year 1998 and all subsequent years for which

the submission date precedes the date on which the refund would have

been payable but for the application of this sub-article..

(1B) Notwithstanding the provisions of sub-article (1), in no

case shall any refund be made under this Act to any person

registered for the purpose of the Value Added Tax Act, unless and

until such person has filed all tax returns or declarations required to

be furnished for the purpose of the Value Added Tax Act in respect

of tax periods up to and including the last complete tax period in

the year preceding that in which the refund would have been

payable but for the application of this sub-article.

(2) Except as regards sums repayable on an objection or appeal,

no repayment shall be made to any person in respect of any year of

assessment as regards which that person has failed or neglected to

deliver a return or has been assessed in a sum in excess of the

amount contained in his return, provided he has received notice of

the assessment made upon him for that year; unless that person has

made an election under article 12 for that year or it is proved to the

satisfaction of the Commissioner that such failure or neglect to

deliver a true and correct return did not proceed from any fraud or

wilful act or omission on the part of that person.

(2A) Subject to the provisions of sub- sub-article (2B) any tax

determined as repayable to a person for a year of assessment under

article 31(1) or (2) shall become due or shall be deemed to have

become due, as the case may be, in the case of a person to whom

article 11(2) of the Income Tax Act applies, on the first of April,

and, in the case of any other person, on the first of March, of the

year immediately following that year of assessment or on such

other date or dates, not being later than the dates aforesaid, as may

be prescribed.

(2B) * (i) When the tax repayable has been determined under

article 31 fol lowing a return furnished after the

relevant tax return date it shall become due or shall be

deemed to have become due, as the case may be, on the

later of -

(a) the last day of the sixth (6th) month following

that in which the said return was furnished, and

(b) the last day of the sixth month following the date

on which it would have otherwise become due in

terms of sub-article (2A).

(ii) In the case of a person to whom sub-articles (1A) or

(1B) apply, any refund which would have been payable

but for the provisions of the said sub-articles, shall

become due or shall be deemed to have become due, as

the case may be, on the last day of the sixth (6th)

month following that in which the tax returns referred

to in the said sub-articles were furnished.

(2C) The Commissioner shall be entitled to deduct from any

repayment due to a person as stated in sub-articles (2A) and (2B)

any tax, additional tax or interest that may be due by that person

under the Income Tax Acts.

(2D) Interest shall be payable by the Commissioner on any

repayment of tax that becomes due under sub-article (2A) or (2B)

after any deduction made in terms of sub-article (2C) as from the

date it becomes due as aforesaid at the rate of one per cent for every

month or part thereof for which it remains unpaid

Provided that for any period or part thereof commencing on or

after 1st January 2009, interest shall be calculated at the rate of point

seven five percent (0.75%) per month or part thereof and the total

interest shall not exceed the amount of the said repayment

Provided further that for any period or part thereof

commencing on or after 1st January 2014, interest shall be calculated

at the rate established by the provisions of article 44(2A) and the total

interest shall not exceed the amount of the said repayment

Provided further that for any period or part thereof

commencing on or after 1 September 2022, interest shall be calculated

*Applicable as from year of assessment 2021.

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.

(2E) For the purposes of this article where the repayment of tax

is made by means of a cheque or a draft, the tax shall be deemed to

have been repaid to a person on the day on which the cheque or the

draft is posted to that person’s last known address.

(2F) The provisions of sub-articles (2B) to (2E) shall not apply

to refunds to which sub-articles (4) or (4A) or the provisos to sub-

article (7)(a) refer.

(3) Any person who is aggrieved by the decision of the

Commissioner as to the amount to be repaid under the provisions of

this article shall have the same right to appeal against such decision

as if he were aggrieved by an assessment made upon him

Provided that such appeal shall not reopen any question

with respect to which a right of appeal under the provisions of

article 35 and 37 has lapsed or which has already been decided on

appeal.

(4)

(a) A person, in receipt of a dividend paid to him from

profits allocated to the foreign income account or any

profits distributed by an international trading company,

as the case may be, may claim a refund of two-thirds of

the Malta tax paid by the company in respect of those

profits distributed to him by way of such dividend,

where such person is either

(i)

not resident in Malta and who is, where

applicable, not owned and controlled by, directly

or indirectly, nor acts on behalf of, a person who

is ordinarily resident and domiciled in Malta; or

(ii) a company resident in Malta which is wholly

owned by a person or persons not resident in

Malta, provided that such person or persons are

not owned and controlled by, directly or

indirectly, or act on behalf of a person or persons

ordinarily resident and domiciled in Malta

Provided that the conditions set out in paragraphs (i)

and (ii) shall not apply in respect of dividends paid by

any company registered in Malta to any recipient

shareholder who is registered for the purpose of this

article 48(4) or article 48(4A).

(b) Subject to the provisions of paragraph (a), where

profits distributed as aforesaid out of the foreign

income account derive from a participating holding or

from the disposal of such holding, a claim may be

made for a refund of all of the Malta tax paid in

respect of those profits

Provided that with respect to a claim for refund

relative to dividends derived from a participating

holding acquired on or after 1 January 2007, the refund

contemplated by this paragraph shall only be due when

the conditions set out in either paragraph (i) or

paragraph (ii) below are satisfied

(i)

where the body of persons in which the

participating holding is held satisfies any one of

the following conditions, that is to say

(1) it is resident or incorporated in a country

or territory which forms part of the

European Union;

(2) it is subject to any foreign tax of at least

fifteen per cent (15%);

(3) it does not have more than fifty per cent

(50%) of its income derived from passive

interest or royalties;

(ii) where none of the conditions set out in

paragraph (i) are satisfied then both of the

following two conditions must be satisfied

(1) the equity holding by the company

registered in Malta in the body of persons

not resident in Malta is not a portfolio

investment and for this purpose the

holding of shares by a company resident in

Malta in a body of persons not resident in

Malta which derives more than fifty per

cent of its income from portfolio

investments shall be deemed to be a

portfolio investment; and

(2) the body of persons not resident in Malta

or its passive interest or royalties have

been subject to any foreign tax at a rate

which is not less than five per cent (5%)

Provided further that the provisions of the immediately

preceding proviso shall, with effect from 1 January

2011, also be applicable to a claim for refund in

respect of the Malta tax paid on distributed profits

comprised in dividends received from a participating

holding acquired before the 1 January 2007.

(c) For the purposes of this sub-article, the expression

"Malta tax paid" shall mean the tax actually paid by

the company to the Commissioner on the profits

distributed out of the foreign income account or on any

profits derived and distributed by a company while it

was an international trading company, as the case may

be

Provided that as regards claims made relative to the

payment of dividends from profits allocated to the

foreign income account and brought to charge to tax in

year of assessment 2008 and subsequent years of

assessment the expression "Malta tax paid" shall, for the

purpose of determining the amount of the refund, mean

the tax actually paid by the company to the

Commissioner on the profits so allocated plus the

amount, if any, by which such tax has been reduced by

a claim of relief of double taxation under the articles

referred to in articles 74(a), (b) and (c) of the Income

Tax Act

Provided further that, notwithstanding the previous

proviso, a tax refund payable in terms of this sub-article

shall in no case exceed the amount of tax actually paid by

the company to the Commissioner on the profits

distributed out of the foreign income account or on any

profits derived and distributed by a company while it was

an international trading company, as the case may be

Provided that the following provisos shall also apply to the

whole of sub-article (4)

(i)

with effect from 1 January 2011 and up to 31

December 2014, as regards dividends paid by a

company which was an international trading company

as at 31 December 2010, the provisions of this article

shall continue to apply after 31 December 2010 with

respect to the distribution of profits earned by such

company while it was an international trading

company;

(ii) a person resident in Malta, registered for the purpose

of making a claim in terms of this sub-article in such

manner as may be prescribed, may also claim a tax

refund contemplated by this sub-article with respect to

dividends paid from profits allocated to the foreign

income account when such dividend is paid

1. by a company which was a company registered

in Malta on or after 1 January 2007 but was not

resident in Malta before that date; and

2. by any company which has exercised its option

in terms of paragraph (i) of the proviso to article

48(4A)(b); and

3. by any other company registered in Malta out of

profits derived by the said company in respect of

accounting periods which commenced on or

after 1 January 2011.

(4A) (a) With effect from 1 January 2007 a person, in receipt of

a dividend paid to him by a company registered in

Malta from profits allocated to its Maltese taxed

account or its foreign income account, may claim a

refund of six-sevenths of the Advance Company

Income Tax pertaining to those profits distributed to

him by way of such dividend, provided that such

person is for such purpose registered in such manner

as may be prescribed

Provided that where the dividend is paid out of profits

(i)

consisting of passive interest or royalties or of

dividends received from a participating holding

in a body of persons which does not satisfy the

conditions referred to in the proviso to article

12(1)(u) of the Income Tax Act, the rate of

refund shall be of five-sevenths of the said

Advance Company Income Tax;

(ii) allocated to the foreign income account and in

respect of which profits the company has

claimed relief of double taxation no claim for

refund may be made under this sub-article

Provided further that, notwithstanding the provisions

of article 42B(2), a tax refund payable in terms of this

sub-article shall in no case exceed the amount of tax

actually paid by the company to the Commissioner on

the profits distributed out of the Maltese taxed account

or foreign income account.

(b) During the period from 1 January 2007 to 31

December 2010, any refund contemplated in this sub-

article may only be claimed by a person in receipt of a

dividend from a company which was a company

registered in Malta on or after 1 January 2007 but was

not resident in Malta before that date

Provided that

(i)

a person in receipt of a dividend from a company

referred to in any of sub-paragraphs (1) or (2)

and paid after the said company has informed

the Commissioner as contemplated in the said

paragraphs (1) or (2) below, may also claim a tax

refund in terms of this sub-article during the

aforementioned period if the conditions of

paragraph (a) are satisfied

1. a company which qualifies as an

international trading company and which

informs the Commissioner that it has opted

to cease to be an international trading

company which option shall be approved

by an extraordinary resolution of the

members of such company;

2. a company which has informed the

Commissioner that it has opted to be

treated as a company which was registered

in Malta on or after 1 January 2007 but

was not resident in Malta before that date,

where such company had, in the three

accounting periods immediately preceding

that in which it has so informed the

Commissioner, in the aggregate more than

50% of its profits allocated to the foreign

income account or consisting of income in

respect of which the exemption provided

by article 12(1)(u) of the Income Tax Act

is applicable and has been applied, which

option shall be approved by an

extraordinary resolution of the members of

such company

Provided that

(aa) where the company was not in

existence or was not resident or

registered in Malta during the whole

of the above mentioned three year

period the condition relating to the

nature of its income set out in

paragraph (2) above shall be

determined by reference to the

period that such company was in

existence, resident or registered in

Malta as the case may be;

(bb) The Commissioner may, in his

discretion, determine that paragraph

2 above applies to a company if he is

of the opinion that it is likely that in

the foreseeable future more than half

of the distributable profits of the

company will consist of any or all of

the following categories of income

- profits that will be allocated to

the foreign income account;

- profits which are not subject to

tax but which would otherwise

be allocated to the foreign

income account;

- dividends received from an

international trading company,

including, where applicable,

dividends paid after that

company has exercised the

option under paragraph 1 of

proviso (i);

-

income derived from the

ownership and, or chartering of

any tonnage tax ship as defined

in the Merchant Shipping (Tax-

ation

and

Other

Matters

Relating to Shipping Organisat-

ions) Regulations;

-

income derived from the

ownership and, or chartering of

any ship, yacht, boat and any

other vessel (in each case not

being a tonnage tax ship as

defined

in

the

Merchant

Shipping (Taxation and Other

Matters Relating to Shipping

Organisations)

Regulations),

provided that the aforesaid

income is derived by a company

which

was

originally

incorporated in terms of and

subject

to

the

Merchant

Shipping (Shipping Organis-

ations - Private Companies)

Regulations, and whose objects

were restricted as required

under such Regulations;

-

income

of

any

company

qualifying for benefits in terms

of regulation 4, 5 or 6 of the

Business

Promotion

Regu-

lations

Provided further that a company to which

paragraph (2) above applies shall not be entitled

to claim a refund in respect of the Malta tax paid

on profits allocated to its Maltese taxed account

in years of assessment prior to year of

assessment 2008.

(ii) such company did not derive any of its profits,

(even if such profits are not comprised in the

said dividend) directly or indirectly, from a

trade, business or other activity (hereinafter

referred to as "the new activity") which is in

whole or in part the same or an expansion,

replacement or duplication of a trade, business

or other activity which was carried on in Malta,

prior to the 1 January 2007, by any person

(hereinafter referred to as the "old activity"); and

the foregoing shall be interpreted in the light of

the following

(1) where the human, tangible or intangible

resources of the new activity are

substantially the same as those which were

utilised by old activity, it shall be

presumed, unless the contrary is proved,

that the new activity is the same or an

expansion, replacement or duplication of

an old activity;

(2) where the new activity is carried on

directly or indirectly by any person in any

way directly or indirectly connected or

associated with the persons which carried

on the old activity through shareholding,

voting or other ownership or controlling

rights it shall be presumed, unless the

contrary is proved, that the new activity is

the same or an expansion, replacement or

duplication of an old activity;

(3) a new activity shall not be presumed to be

the same or an expansion, replacement or

duplication of an old activity merely

because the new activity is similar to an

old activity because, inter-alia, it provides

the same type of goods or services or

because the new activity operates in the

same market as the old activity and

competes with the old activity

Provided that where the old activity had been

carried by a company to which proviso (i) to this

paragraph (b) may be applied the new activity

shall not be considered in whole or in part the

same or an expansion, replacement or

duplication of the old activity.

(c) For the purpose of paragraph (b)(ii) where the

Commissioner is of the opinion that any activity

carried out by any company which consists of any part

of any administrative, management or other activity

carried on by any person as part of his business

activities prior to the 1 January 2007, and any other

activity forms part of a scheme the sole or main

purpose of which is the avoidance of the provisions of

paragraph (b) shall be a trade, business or activity

which was carried on in Malta, prior to the 1 January

2007, by any person; and for this purpose the word

"scheme" shall have the meaning assigned to it by

article 51(5) of the Income Tax Act.

(d) Without prejudice to proviso (i) of paragraph (b) a

claim for refund pursuant to paragraph (a) in respect of

dividends paid from profits allocated to the Maltese

taxed account by companies which were resident in

Malta prior to the 1 January 2007 may only be made in

respect of the tax paid on profits derived by the said

company in respect of accounting periods which

commenced on or after 1 January 2011

Provided that a claim for refund may be made pursuant to

paragraph (a) in respect of dividends distributed from profits allocated

to the Maltese taxed account of companies which were resident in Malta

prior to the 1st January, 2007, which profits were derived by those

companies in accounting periods which commenced prior to the 1st

January, 2011, where those dividends fall within the purport of proviso

(i) to sub-article (4) of this article but do not result in an entitlement for

refund in terms of the said proviso merely due to the expiration of the

deadline of the 31st December, 2014.

(5) A claim for refund pursuant to sub-article (4) or sub-article

(4A) shall be made not later than four years from the date from

which the amount of tax is eligible for refund.

(6) The Commissioner shall make payment of the refund under

sub-article (4) or sub-article (4A) on being satisfied as to the

correctness of the claim made and upon receipt of a certificate

issued by the company paying the dividend under the provisions of

article 59(5) of the Income Tax Act. Such refund, unless otherwise

provided for in the Income Tax Acts, shall not be taxable

Provided that notwithstanding anything contained in the

Income Tax Acts the Commissioner shall not make such payment

unless any tax due under the investment income provisions in

respect of investment income referred to in article 41(a)(viii)(2) or

(4) comprising the distributed profits the tax paid on which is the

tax in respect of which the claim pursuant to this sub-article is

made, has been paid.

(7)

(a) Where a claim for refund has been made under the

provisions of sub-article (4) or sub-article (4A) in

respect of Malta tax paid on distributed profits as

properly shown in the relevant dividend certificate, no

person shall be entitled to a further refund under those

sub-articles or to a refund under any other provisions

of the Income Tax Acts in relation to the Malta tax paid

on such distributed profits

Provided that a person entitled to such refund as set

out under sub-article (4) in respect of profits

distributed by an international trading company shall

also be entitled to a refund of the difference between

the Malta tax paid by the international trading

company and the tax chargeable on such person on

such income in accordance with the provisions of this

Act

Provided further that the provisions of the immediately

preceding proviso shall during the period 1 January

2011 to 31 December 2014 also apply in the case of

any profits distributed by a company which was an

international trading company as at 31 December 2010

where such profits were earned by such company

while it was an international trading company.

(b) Where a claim for refund has been made under the

provisions of sub-article (4) or sub-article (4A) in

respect of Malta tax paid on distributed profits as

properly shown in the relevant dividend certificate,

notwithstanding the provisions of article 60 of the

Income Tax Act, such Malta tax paid which a company

had deducted or is entitled to deduct under article 59

from such dividend, shall, when such dividend is

included in the chargeable income of any person,

including a company receiving the said dividend or a

person holding directly or indirectly shares in such

company which receives a dividend out of such

profits, be set off, for the purposes of collection, only

against the tax charged on that dividend.

(c) Where a claim for refund of the Malta tax paid has been

made under sub-article (1) in respect of Malta tax paid on

distributed profits as properly shown in the relevant

dividend certificate, no person shall be entitled to a

further refund under the provisions of sub-article (4) or

sub-article (4A) in relation to the Malta tax paid on such

distributed profits.

(8) A refund due by the Commissioner as aforesaid shall

constitute a debt due by the Commissioner to the claimant which

shall be payable not later than the fourteenth day following the day

on which the refund becomes due and shall be recoverable as such

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.

(9) Where a refund of tax by the Commissioner is wholly or

partly not due to a person, it shall be the duty of such person to

make a repayment thereof to the Commissioner within thirty days

from the date of receipt of such refund, and where such repayment

is not paid as aforesaid interest shall be charged according to the

provisions of article 44.

(10) If any person claims a refund in terms of sub-article (4) or

sub-article (4A) when that person was not entitled to the said

refund such person shall be liable to pay a penalty equal to the

amount of the refund claimed and if the refund was in fact paid to

him that person shall in addition be liable to repay the tax so

refunded and to additional tax of seven per cent per month or part

thereof commencing from the month in which the said refund was

paid to him up to the month in which he repaid the tax refunded and

any paym en t m ade by th e said person in r esp ect of th e tax

repayable by him in terms of this paragraph shall first be applied

against any additional tax due thereon

Provided that the provisions of this sub-article shall not be

applicable when the person referred to therein proves that he did

not know and could not reasonably have known that he was not

entitled to such a tax refund.

(11) The Minister responsible for finance may from time to time

make rules in relation to the carrying out of the provisions of this

article.

PART IX

Offences and Penalties

(1) Any person who contravenes or fails to comply with

any of the provisions of the Income Tax Acts or of any rules made

thereunder shall be guilty of an offence and, unless another

punishment is specifically provided by the Income Tax Acts, he

shall be liable on conviction to a fine (multa) of not less than

twenty-three euro (23) and not exceeding one hundred and sixteen

euro (116).

(2) Where a person is, on or after 1st July 1977, found guilty of

an offence under any of the provisions of the Income Tax Acts and

is not sentenced to imprisonment for that offence the court shall

expressly warn him that if, within five years from the date of the

warning, he is again found guilty of another offence under any of

the provisions of the Income Tax Acts (whether of the same nature

or not) he shall be sentenced, in addition to any other punishment,

to not less than three days imprisonment or to a fine (multa) of one

thousand and five hundred euro (€1500); and a person so found

guilty on a second or subsequent occasion, within the period

aforesaid, shall, notwithstanding anything contained in the

Probation Act, or in any other enactment, be sentenced to

imprisonment for a term of not less than three days or a fine (multa)

of five thousand euro (€5000), in addition to any other punishment

except imprisonment for a longer term.

Every person who without sufficient cause -

(a) fails to comply with the requirements of a notice,

intimation, request or demand note given or made to

him or served upon him under the Income Tax Acts; or

(b) fails to attend in answer to a notice issued to him under

the Income Tax Acts or having attended fails to answer

any question lawfully put to him,

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

fine (multa) of not less than twenty-three euro (23) and not

exceeding ten thousand euro, and to a further fine (multa) not

exceeding two hundred euro for every day during which the default

continues after conviction.

(1) Every person who without reasonable excuse -

(a) makes an incorrect return by omitting or understating

any income of which he is required by the Income Tax

Acts to make a return; or

(b) gives any incorrect information in relation to any

matter or thing affecting his own liability to tax or the

liability of any other person or of a partnership; or

(c) fails to furnish a return which he is required to furnish in

accordance with the Income Tax Acts,

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

fine (multa) of not less than fifty-eight euro (58) and not exceeding

four hundred and sixty-five euro (465) and, in addition, to double

the amount of tax which has been undercharged in consequence of

such incorrect return, or information, or would have been so

undercharged if the return or information had been accepted as

correct.

(2) No person shall be liable to any penalty under this article

unless the complaint concerning such offence was made in the year

of assessment in respect of or during which the offence was

committed or within three years after the expiration thereof.

(3) The Commissioner may compound any offence under this

article, and may before judgment stay or compound any

proceedings thereunder.

(1) Any person who wilfully with intent to evade or to

assist any other person to evade tax under the Income Tax Acts -

(a) fails to furnish a return or any other document or

statement which he is required to furnish by the Income

Tax Acts or omits from a return or any other document

or statement made, prepared or submitted for the

purposes of or under the Income Tax Acts, any income

which should be included therein; or

(b) makes any false statement or entry in any return or

other document or statement prepared or submitted for

the purposes of or under the Income Tax Acts; or

(c) gives any false answer, whether verbally or in writing,

to any question or request for information asked or

made in accordance with the provisions of the Income

Tax Acts; or

(d) prepares or maintains or authorises the preparation or

maintenance of any false books of account or other

records or falsifies or authorises the falsification of

any books of account or records; or

(e) makes use of any fraud, art or contrivance whatever or

authorises the use of any such fraud, art or

contrivance; or

(f)

has in his possession or under his control any article

for use in the course of or in connection with altering,

destroying, erasing or concealing any information,

records or evidence which he knows or is reasonably

expected to know to be relevant for any purpose of this

Act; or

(g) makes, adapts, supplies or offers to supply any article

knowing that it is designed or adapted for use in the

course of or in connection with altering, destroying,

erasing or concealing any information, records or

evidence which he knows or is reasonably expected to

know to be relevant for any purpose of this Act, or

intending it to be used to commit, or assist in the

commission of fraud; or

(h) alters, destroys, conceals, covers up, falsifies, or makes a

false entry in any record, document, electronic data or

tangible object,

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

before a Court of Magistrates sitting as a court of criminal

judicature -

(i)

to a fine (multa) not less than seven hundred

euro (€700) and not exceeding three thousand

five hundred euro (€3,500) in the case of any

offence committed under paragraphs (a) to (d);

and

(ii) to a fine (multa) of not less than six thousand

euro (€6,000) and not exceeding ten thousand

euro (€10,000) for an offence committed under

paragraphs (e) to (h),

and, in addition, for each offence as above referred to in paragraphs

(a) to (h), to treble the amount of tax to which the person whose tax

liability it was intended to evade, or to assist in evading, is liable

under the Income Tax Acts for the year of assessment in respect of

or during which the offence was committed, or to imprisonment for

any term not exceeding six months, or to both such fine and

imprisonment.

For the purposes of paragraphs (f) and (g) the term "article"

includes any program or data held in electronic form.

(2) The Commissioner may compound any offence under this

article, and may before judgment stay or compound any

proceedings thereunder.

(1)

Notwithstanding any other provision of this Act or of

any other law, upon the conclusion of an agreement made in terms of

this article between the Commissioner and any person obliged to make

any payment under this Act, hereinafter in this article referred to as the

"debtor" or the "taxpayer", providing for the payment of an additional

penalty in addition to any other penalties otherwise provided in this Act,

all criminal liability of the debtor for any breach against this Act and for

any connected breach in respect of the acts in relation to which the

agreement has been entered, shall be extinguished

Provided that the additional penalty that such person shall be

liable to pay in respect of such breach or breaches shall amount to a

minimum of ten thousand euro (€10,000) and a maximum of one million

euro (€1,000,000), and shall be imposed in terms of a Schedule to be

prescribed by the Minister under this Act, and this in addition to any

other amount provided for in this Act for the debtor’s default and

quantified according to the final agreement

Provided further that the agreement to pay any fine or make

any other payment under an agreement as provided in this article shall

not extinguish any civil liability to make any payment not covered by

the agreement entered into in terms of this article.

(2)

(a)

The provisions of this article shall apply where the

Commissioner, acting upon the written request of the taxpayer and the

notification of adjustment of previous declarations given by the

taxpayer, accepts that the adjustments have been correctly made and

shall give notice in writing to the taxpayer of a draft agreement in terms

of this article to be signed within six (6) months from the date of the

request of the taxpayer

Provided that the said period of six (6) months may be

extended by the Commissioner if the Commissioner is satisfied that a

longer period is required to determine the extent of the proceeds of the

breach.

(b)

The draft agreement shall include the following

(i)

details of the breach or breaches which may

include admissions made by the debtor;

(ii) an obligation upon the debtor to pay and a

quantification of an additional penalty and any other payment

due in terms of this Act for the default;

(iii) the period allowed for the payment of the amounts

due under the agreement;

(iv) the consequences of any failure to comply with any

terms of the agreement including those provided in articles 187A,

187B and 187C of the Criminal Code;

(v)

any other terms and conditions imposed by the

Commissioner

Provided that when a draft agreement is notified as aforesaid,

an agreement in terms of this sub-article shall be signed and returned to

the Commissioner within one (1) month, and if the signed agreement is

not received by the Commissioner within the said timeframe, which may

be extended by the Commissioner upon reasonable cause being shown

by the taxpayer, the provisions of this article shall have no effect

Provided further that the amount resulting from this

agreement shall constitute an executive title within the meaning of and

for the purposes of Title VII of Part I of Book Second of the Code of

Organisation and Civil Procedure.

(3)

The period of prescription in respect of the breach and

connected breaches shall be suspended during the times established in,

or under sub-article (2) and no prosecution shall be instituted in respect

of the breach and connected breaches during the time when those

periods are running

Provided that no prosecution shall be annulled on the ground

that it was instituted in violation of this sub-article.

(4)

The provisions of this article shall also apply upon the request

of the debtor in any case where the debtor has been charged before a

court in relation to the breach or breaches and connected breaches, but

before final judgment has been given in the case.

(5)

Where proceedings are pending before the Court of

Magistrates as a court of criminal inquiry and the existence of an

agreement is brought to the Court’s notice, the Court shall, upon being

satisfied that the breach or breaches mentioned in the charge are

breaches to which this article applies or connected breaches, assume the

function of a court of criminal judicature and declare the criminal

action extinguished in respect of such charges. The Court shall

likewise declare the criminal action extinguished if it is a court of

criminal judicature whether at first instance or at appeal stage

notwithstanding any previous judgment delivered in the cause which

has not become final.

(6)

In this article

"agreement" means and includes a document evidencing

an agreement reached between the Commissioner and the debtor

in terms of this article and also includes a document or a

declaration issued by the Commissioner after the coming into

force of this article confirming that the debtor has before the

coming into force of this article regularised his position with the

Commissioner and has after the coming into force of this article

satisfied the requirements thereof by accepting to pay the

additional penalty;

"breach" or "breaches" includes any act or acts which

constitute a criminal offence;

"Commissioner" means the Commissioner for Tax and

Customs;

"connected breach" means any act which constitutes a

criminal offence committed in pursuance of committing a breach

against this Act and shall include

(i)

a breach committed, even if at different

times, in pursuance of a pre-concerted plan to commit a

breach against this Act;

(ii)

a breach committed with the object of

procuring the means for the commission of a breach

against this Act;

(iii) a breach committed with the object of

facilitating the commission or completion of a breach

against this Act, or of ensuring impunity for such a

breach;

(iv) a breach which in a single context violates

more than one provision of law where at least one

provision relates to a breach against this Act;

(v)

a breach committed through the apparently

legitimate use of the proceeds of a breach against this Act

Provided that a connected breach shall not include

any act included in Sub-title IV of Title III of Part II of Book

First of the Criminal Code;

"this Act" includes any subsidiary legislation issued

thereunder.

Any person who, having or having had any official duty or

being or having been employed in the administration of the Income

Tax Acts, has or had access to, possession of or control over any

documents, information, returns or assessments, relating to the

Income Tax Acts, or copies thereof, and who, except as provided in

article 4, at any time communicates or attempts to communicate

any such information or anything contained in such documents,

returns, assessments or copies to any person, shall be guilty of an

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

less than two hundred and thirty-two euro (232) and not more than

two thousand and three hundred and twenty-five euro (2,325), or to

imprisonment for a period not exceeding six months, or to both

such fine (multa) and imprisonment.

(1) The institution of proceedings for, or the imposition of,

a penalty, fine or term of imprisonment under the Income Tax Acts

shall not relieve any person from liability to payment of any tax for

which he is or may be liable.

(2) The payment of any tax as mentioned in the preceding sub-

article may be enforced in terms of article 40(2) of the Act, which shall

be applicable mutatis mutandis, in like manner as it had been given in

a civil action between the Commissioner and the offender.

The provisions of the Income Tax Acts shall not affect any

criminal proceedings under any other Act or law.

Deleted by Act IX.2025.49.

* (1) In this article -

(a) "warrant holder" means a person or firm in possession

of a warrant issued under the Accountancy Profession

Act;

(b) "Board" means the Board constituted under article 6 of

the Accountancy Profession Act.

(2) Where the Commissioner is of the opinion that any

document which has been produced to or obtained by him for any

purpose of the Income Tax Acts for the year immediately preceding

the year of assessment beginning on 1st January, 1998 and

subsequent years, being a document to which this article refers,

constitutes or contains evidence of any act or omission on the part

of a warrant holder, and that such act or omission is an act or

omission mentioned in article 15(1)(a)(i) of the Accountancy

Profession Act he shall, subject to the other provisions of this

article, send a copy of that document to the Board.

(3) The Commissioner shall certify any document he sends to

the Board in accordance with sub-article (1) hereof as a true copy

of the original and shall send to the Board together with any such

document a statement giving the reasons for which he has formed

his opinion, provided that no reference may be made in any such

statement to any facts or circumstances which do not result from

the said documents.

(4) The Board may use any document received in accordance

with the provisions of this article for the purpose of an enquiry

which it may conduct under the said Act but not for any other

purpose.

(5) A document sent to the Board and certified as a true copy of

the original in accordance with this article shall be admissible as

evidence as if it were the original and the production of such

document shall not empower any court or authority to request the

Commissioner to produce the original of such document or to give

evidence on such document except as may be allowed under the

other provisions of the Income Tax Acts

Provided that the Commissioner may be required to

produce the original of any such document in any case where it is

necessary to prove the handwriting or the signature or the identity

of the warrant holder in question, but only for the purpose of such

proof and provided that the said original shall be returned to the

Commissioner as soon as it is no longer required for the purpose for

which it has been produced.

(6) Within a reasonable time from the receipt of any document

sent to it in accordance with this article, the Board shall inform the

Commissioner in writing whether it proposes to use the said

document for the purpose referred to in sub-article (4) hereof or

not, and, in the latter case, the Board shall state the reason for its

decision not to make such a use and shall return the document to

the Commissioner.

*This article was originally added as article 19A.

(7) Within a reasonable time from the conclusion of any

enquiry in which any documents referred to the Board in

accordance with this article have been used, the Board shall deliver

to the Commissioner a copy of its decision on that enquiry.

(8)

Nothing in this article shall be construed as -

(a) empowering the Board to request any information or

documents from the Commissioner or to otherwise

have access to documents or other information held by

the Commissioner;

(b) binding the Commissioner to give evidence or expla-

nations in respect of any documents sent by him to the

Board;

(c) binding the Commissioner to conduct any investi-

gation or make reports on the conduct of any warrant

holder.

(9)

The documents to which this article refers are

(a) any report or certification signed by a warrant holder;

(b) any records, books, accounts or computations, or any

extract thereof, in respect of which a report or

certification referred to in paragraph (a) hereof has

been made

Provided that a document referred to in this

paragraph shall not be deemed to be a document to

which this article refers unless it is sent to the Board

together with the said report or certification.

PART X

Power to make rules

The Minister responsible for finance may from time to time

make rules generally for carrying out the provisions of this Act and

may, in particular, by those rules provide -

(a) for the form of returns, claims, statements and notices

under this Act;

(b) for the use of electronic communications with respect

to the form and delivery of returns, claims, statements,

notices and information or documents the form and

delivery of which is authorised or required by or under

the Income Tax Acts and of regulations made

thereunder, including the making of payments by

electronic means under the said Acts and regulations;

(c) for the fees to be levied in relation to the issue of tax

residency and tax balance certificates, application for a

ruling in terms of articles 52 and 27A of the Income

Tax Act, registration of shareholders and application

for a refund under article 48(4) and (4A); and

(d) for any such matters as are authorised by this Act to be

prescribed.

A record of any exemption made by the Minister

responsible for finance under the provisions of article 12(2) of the

Income Tax Act, in regard to any body of persons, or class of

persons, shall be laid on the Table of the House of Representatives

as soon as may be after it is made.

(1) The provisions of article 4(4A) of the Income Tax Act

as in force immediately before the coming into force of this Act and

the Income Tax (Amendment) (No.2) Act, 1994, shall continue in

force with respect to every capital assets return mentioned in that

sub-article with respect to the years of assessment mentioned in

that sub-article up to the year of assessment 1994.

(2) The provisions of the Income Tax Act with respect to

returns of income and capital assets for the years of assessment up

t o th e y ear of a sse ssm en t 19 94, shal l con tin ue in f or ce, a s

immediately in force before the coming into force of this Act.