267 tal-2004 - Regolamenti tal-2004 dwar Direttivi ta’ l-Unjoni Ewropea

L.N. 267 of 2004

INCOME TAX ACT

(CAP. 123)

European Union Directives Regulations, 2004

BY virtue of the powers conferred by articles 52B and 96 of the

Income Tax Act, hereinafter referred to as “the Act”, the Prime Minister

and Minister of Finance has made the following regulations> -

(1) The title of these regulations is the European Union

Directives Regulations, 2004.

(2) These regulations shall come into force on the 1st May,

2004.

The Directive of 23 July, 1990 adopted by the Council of the

European Communities on the common system of taxation applicable

in the case of parent companies and subsidiaries of different Member

States (90#435#EEC) as amended up to and in force on the 1st May,

2004 shall have effect in relation to the Income Tax Acts.

(1) The Directive of 19 December, 1977 adopted by the

Council of the European Communities concerning mutual assistance

by the competent authorities of the Member States in the field of direct

and indirect taxation, certain excise duties and taxation of insurance

premiums (77#799#EEC) as amended up to and in force on the 1st May,

2004 (hereinafter in this regulation referred to as the “Mutual Assistance

Directive”) shall have effect in relation to the Income Tax Acts.

(2) For the purposes of Article 1 of the Mutual Assistance

Directive the competent authority in Malta is the Minister responsible

for finance or his authorised representative.

(3) A notice in writing made in the conduct of an enquiry

pursuant to Article 2(2) of the Mutual Assistance Directive shall be

made under the provisions of Article 10A of the Income Tax

Management Act.

(1) The Directive of 3 June, 2003 adopted by the Council of

the European Communities on a common system of taxation applicable

to interest and royalty payments made between associated companies

of different Member States (2003#49#EC) (hereinafter in this regulation

referred to as the “Interest and Royalties Directive”) shall have effect

in relation to the Income Tax Acts.

(2) For the purposes of Article 3(b) of the Interest and

Royalties Directive, Malta does not exercise the option to use the

criterion of a minimum holding of voting rights.

(1) The Directive of 3 June, 2003 adopted by the Council of Savings Directive to

have effect.

the European Communities on the taxation of savings income in the

form of interest payments (2003#48#EC) (hereinafter in this regulation

referred to as the “Savings Directive”) shall have effect in relation to

the Income Tax Acts subject to the provisions of subregulations (2) to

(5) of this regulation. Subject to the provisions of Article 17 of the

Savings Directive, the provisions of this regulation shall be applied

from 1st January, 2005.

(2) For the purposes of Article 5 of the Savings Directive,

the competent authority in Malta is the Minister responsible for finance

or his authorised representative.

(3) The information to be reported by the paying agent to

the competent authority in Malta for all interest payments made during

a calendar year under Article 8 of the Savings Directive shall be furnished

annually not later than the 28th February following the end of such

calendar year.

(4) (a) Paying agents established within the territory of

Malta shall have the obligation to report information to the competent

authority in Malta in line with the provisions of the Savings Directive.

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

deems necessary, give notice in writing to any paying agent to furnish,

within a reasonable time stated in the notice, not being less than 14

days, such information (including copies of any relevant books,

documents or other records) which the Commissioner may deem

necessary in order to determine that the information reported by the

said paying agent was correct and complete. The said paying agent

required to furnish such information shall make available all the

documents in his possession or under his control as required under the

provisions of this paragraph.

(c) Any failure to comply with the obligations referred

to in paragraphs (a) and (b) shall be deemed to be a failure to comply

with the requirements of a notice for the purposes of article 50 of the

Income Tax Management Act.

(5) Malta shall be deemed not to have exercised any of the

options referred to in the Directive. Malta shall also restrict the minimum

amount of information concerning interest payment to be reported by

the paying agent to that specified in Article 8(2) of the Savings Directive.

(6) For the purposes of Article 14 of the Savings Directive,

Malta shall ensure the elimination of double taxation which might result

from the imposition of withholding tax referred to in Article 11 of the

Savings Directive only in accordance with the tax credit mechanism

referred to in paragraphs 2 and 3 of the said Article 14. A claim for the

elimination of double taxation which may so occur may be made under

the provisions of articles 80 to 88 of the Act i.e. the unilateral relief

provisions> provided that in the case of any conflict between the unilateral

relief provisions or the provisions of article 48 of the Income Tax

Management Act, and the provisions of paragraphs 2 and 3 of Article

14 of the Savings Directive, the provisions of the Savings Directive

shall prevail.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press