Capital Gains (Amendment) Rules, 2007

L.N. 37 of 2007

INCOME TAX ACT

(CAP. 123)

Capital Gains (Amendment) Rules, 2007

IN exercise of the powers conferred by articles 5 and 96 of the

Income Tax Act, the Prime Minister and Minister of Finance has

made the following rules:-

The title of these rules is the Capital Gains (Amendment)

Rules, 2007 and they shall be read and construed as one with the

Capital Gains Rules, 1993, hereinafter in these rules referred to as

1993. "the principal rules".

In sub-rule (14) of rule 5 of the principal rules, for the

words "5(9) and 12(1)(c)(ii) of the Act" there shall be substituted the

words "5(9), 5(14) and 12(1)(c)(ii) of the Act".

In Schedule A to the principal rules, item 5 shall be deleted

and substituted by the following

"5. This Notice shall be accompanied by an auditor’s

signed report which shall form an integral part of the notice

giving assurance (a) as to the agreement with the deed of

acquisition of the purchase price of the relative property and (b)

as to whether the values representing the said purchase price

and the relative improvements have been properly extracted

from the books and records of the company and (c) that the said

values represent the historical cost of the property.".

Schedule C to the principal rules shall be amended as

follows

(a)

Part 4 thereof shall be deleted and Parts 5 and 6 shall

be renumbered as Part 4 and Part 5 respectively; and

(b) The box at the end of the Schedule shall be deleted

and a new Part 6 shall be added as follows

"Part 6 - Declaration

I do hereby declare that the information submitted

through this form is true and complete

Transferor’s signature ........... Transferor’s name ...............

This Notice shall be accompanied by an auditor’s

signed report which shall form an integral part of the

notice, giving assurance as to (a) the fact that the transfer is

a transfer of a controlling interest (including the grounds

on which such statement is based) and (b) whether the

computation of the market value of the shares being

transferred has been properly prepared in accordance with

the Capital Gains Rules.".

In Schedule D to the principal rules, the box at the end of Amends

the Schedule shall be deleted and a new Part 4 shall be added as Schedule

the principal

rules.

"Part 4 - Declaration

I do hereby declare that the information submitted through

this form is true and complete

Transferor’s signature .................. Transferor’s name ................

This Notice shall be accompanied by an auditor’s signed

report which shall form an integral part of the notice and shall

give assurance as to the fact that the transfer does not constitute

a transfer of a controlling interest. The report shall be

accompanied by a valuation by the auditor attesting the value of

the said shares as required by the provisions of rule 5(10) of the

Capital Gains Rules.".

Schedule E to the principal rules shall be amended as Amends

Schedule E to

the principal

rules.

(a)

the present Parts 2 and 3 shall be renumbered as Part

3 and Part 4 respectively and a new Part 2 shall be added as

follows

"Part 2 - Details of Company in which shares

are being transferred

Company Name

Income Tax Registration No

Company year end

Date of incorporation

ROC No

Authorised share capital

";

Issued share capital

(b) Part 4 thereof, as renumbered, shall be deleted and

substituted by the following

"Part 4 - Details of exemption

State under which of the following provisions of

the Income Tax Act the share transfer is exempt

Article 5(2)(e)

Article 5(6)(e)

Article 5(9)

Article 5(14)

";

Article 12(1)(c)(ii)

and

(c)

the box at the end of the Schedule shall be deleted

and a new Part 5 shall be added as follows

"Part 5 - Declaration

I do hereby declare that the information submitted

through this form is true and complete

Transferor’s signature ............. Transferor’s name .............

This Notice shall be accompanied by an auditor’s

signed report which shall form an integral part of the

notice and shall give assurance as to the fact that the

transfer is exempt from tax under one of the circumstances

mentioned in rule 5(14) of the Capital Gains Rules.".

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