Tax Refunds and Registration Procedure (Amendment) Rules, 2017

L.N. 377 of 2017

INCOME TAX MANAGEMENT ACT

(CAP. 372)

Tax Refunds and Registration Procedure (Amendment) Rules, 2017

IN EXERCISE of the powers conferred by articles 48 and 58 of

the Income Tax Management Act, the Minister responsible for

Finance, has made the following rules: -

The title of these rules is the Tax Refunds and Registration

Procedure (Amendment) Rules, 2017 and they shall be read and

construed as one with the Tax Refunds and Registration Procedure

Rules, hereinafter referred to as "the principal rules".

Immediately after rule 1 of the principal rules there shall be

added the following new rule

1A. For the purposes of these rules

"trust" means a trust, the trustee of which has

made an election in terms of the provisions of sub-

article 27D(1) of the Income Tax Act;

"trustee" means any trustee of a trust where such

trustee is resident in Malta; and

"shareholder" includes a partner or member of

any body of persons that has elected to be treated as a

company in terms of article 27(6) of the Income Tax

Management Act and for as long as such election

remains in force."

Rule 3 of the principal rules shall be substituted by the

3. (1)

A person who wishes to be

registered with the Commissioner in terms of these

rules shall advise, in writing, the company or trustee,

as the case may be, from which he expects to receive a

dividend or a distribution of profits in relation to

which he wishes to make a claim to be registered and

the company or the trustee, as the case may be, shall

forthwith effect the registration in the manner set out

in rule 4

Provided that where the company or the

trustee, as the case may be, as a result of such

registration may be deemed to be a payor in terms of

article 41(b) of the Income Tax Act, the said company

or trustee shall not be obliged to register the said person

who, after having been requested by the said company

or trustee, has not provided the company or trustee with

security, including a bank guarantee, for the tax that

may be payable by it in terms of article 33 of the

Income Tax Act

Provided further that the trustee shall be

required to register only those beneficiaries whom he

expects shall be entitled to receive distributions out of

profits of the trust.

(2) The registration by the company or by the

trustee, as the case may be, in terms of sub-rule (1)

will apply for the year of assessment in which registration

with the Commissioner in terms of the said sub-rule (1)

is duly effected and for all subsequent years of

assessment until such time that the person notifies the

company or the trustee, as the case may be, of his wish to

cancel his registration in terms of rule 7 and such de-

registration is effected by the Commissioner

Provided that for each applicable year of

assessment following the registration referred to in these

rules and until such time that the cancellation of

registration is notified in accordance with the provisions

of these rules, it shall be deemed that

(a) the registered shareholder or the

registered beneficiary, as the case may be, intends

to make a claim in relation to the tax assessable in

relation to each of the said years of assessment;

(b) the relevant registration has been

renewed for each of the said years of assessment

with the original details on the application and, if

applicable, as amended by any new details

notified in writing by the company or the trustee,

as the case may be, to the Commissioner;

(c)

in the case of a company, the

registered shareholder expects to receive a

dividend out of the profits earned in relation to

each of the said years of assessment; and

(d) in the case of a trust, the registered

beneficiary expects to receive a distribution out of

the profits attributable to the trust in relation to

each of the said years of assessment."

Rule 4 of the principal rules shall be substituted by the

4. The company or the trustee, as the case

may be, shall effect the said registration in such

manner as shall be determined by the Commissioner."

For rule 5 of the principal rules there shall be substituted the

5. (1) A person shall only be entitled to

make a claim pursuant to the sub-articles

mentioned in rule 2 if, at the time of making the

claim, he is registered in terms of these rules and that

registration was made not later than the date on

which the first provisional tax payment instalment of

the company or the trust, as the case may be, for the

relevant year of assessment falls due or the date on

which the company or the trustee, as the case may

be, makes a payment of tax in respect of that year

of assessment whichever is the earlier

Provided that where the period commencing

from the first day of the accounting period ending in

the year preceding the relevant year of assessment

and the date on which the first provisional tax

payment instalment falls due is less than one

hundred and twenty days, the said registration must

have been made not later than the date on which the

second provisional tax payment instalment of the

company or the trustee, as the case may be, for the

relevant year of assessment falls due or the date on

which the company or the trustee, as the case may be,

makes a payment of tax in respect of that year of

assessment (other than the payment in respect of the

first provisional tax payment for that same year of

assessment) whichever is the earlier

Provided further that where the relevant year

of assessment is the first year of assessment of the

company or the trust, as the case may be, the said

registration must have been made not later than the

date on which the second provisional tax payment

instalment for the relevant year of assessment of the

company or the trust, as the case may be, would have

fallen due had that year of assessment been the second

year of assessment and not the first year of assessment

or the date on which the company or the trustee, as the

case may be, makes a payment of tax in respect of that

accounting period whichever is the earlier.

(2) Notwithstanding the provisions of sub-rule

(1) but subject to the provisions of sub-rule (3) the

registration referred to in sub-rule (1) shall be made

not later than the tax settlement date for that year of

assessment of the company or the trust, as the case

may be.

(3) Where on the date of publication of these

rules or on the date of any relevant amendment thereto,

the time period within which a registration is to be

made in accordance with the preceding provisions of

this rule has already elapsed or is a date falling within

one hundred and twenty days from such date, the

registration referred to in sub-rules (1) and (2) shall be

made not later than one hundred and twenty days from

the date of publication of these rules or from the date

of any relevant amendment thereto as the case may be.

(4) Notwithstanding the provisions of sub-rules

(1), (2) and (3), the Commissioner may, in his

discretion and provided that there are sufficient

serious reasons for the request, accept a request for

registration of a person for entitlement to make a

claim pursuant to the sub-articles mentioned in rule 2

provided that such request is made not later than eighteen

months after the end of the accounting period to which

the registration under these rules refers.

(5) In this rule

(a) the "relevant year of assessment" is the

first year of assessment in which the tax in respect

of which a claim and registration is made or is to

be made in terms of these rules is assessable;

(b) the "company" is the company which

makes a payment of a dividend as a result of

which the said person is entitled to make a claim

pursuant to the sub-articles mentioned in rule 2;

(c) the "trustee" is the resident trustee

which makes a distribution out of profits as a

result of which the said person is entitled to make

a claim pursuant to the sub-articles mentioned in

rule 2."

Rule 6 of the principal rules shall be substituted by the

6. (1) The registration of a person under

these rules shall indicate that person’s entitlement to

receive by way of dividend or distribution the whole or

part of the distributable profits of the company or the

trust, as the case may be, and such entitlement is

hereinafter referred to as the "profit entitlement".

(2) Where a company or trustee, as the case

may be, registers a person in terms of these rules,

the company or the trustee, as the case may be, shall

also provide the following information

(a) details of the profit entitlement

of all other shareholders of the company or

beneficiaries of the trust, as the case may be,

irrespective of whether such shareholders or

beneficiaries have required registration in terms

of these rules indicating separately any entitlement

to any profit entitlement of a fixed amount;

(b) such details on the ultimate beneficial

owners of the company or of the beneficiaries of

the trust as shall be determined by the

Commissioner; and

(c) such other information as the

Commissioner may require.

(3) Any change to the details of a registration

made in terms of these rules, including any change to

the profit entitlement where applicable, shall be

notified to the Commissioner in such manner as the

Commissioner may determine.

(4) Where the change relates to a change in a

person’s profit entitlement relative to a company or

trust and as a result of such change, the profit

entitlement of a person who is registered in terms of

these rules is reduced and the profit entitlement of

another person who may or may not be registered in

terms of these rules is increased by a corresponding

amount or percentage, the registration of the latter

person in terms of these rules in respect of such

increase in profit entitlement shall take effect from

the date of the change and the provisions of rules 5

and 7 shall not apply to such change

Provided that the said registration is notified

to the Commissioner contemporaneously with the

notification to the Commissioner of the corresponding

cancellation or reduction in the profit entitlement

registered in the name of the former person as a result of

the said change.

(5) Where in relation to a change in the profit

entitlement relative to a company or trust

(a) the conditions of sub-rule (4) are not

satisfied, the provisions of rule 5 shall apply to

any registration of the additional profit entitlement

of a person resulting from that change;

(b) any person registered in terms of

these rules is no longer entitled to any profit

entitlement in the company or trust, his

registration shall be cancelled by means of the

said notification which cancellation shall be

effective as from the date of the change;

(c) any person registered in terms of

these rules has had his profit entitlement reduced,

his registration shall be amended to reflect the new

profit entitlement and such change shall be

effective as from the date of the change."

Rule 7 of the principal rules shall be substituted by the Substitutes rule

7 of the

principal rules.

7. A person who wishes to cancel his

registration in terms of these rules relative to a

company or a trust shall inform in writing such

company or the trustee of such trust, as the case may be,

and the company or trustee shall de-register him by

completing such forms as the Commissioner may

determine and delivering the said form to the

Commissioner in such manner as the Commissioner

may determine. Such de-registration shall have effect

upon its notification to the Commissioner."

Rule 10 of the principal rules shall be substituted by the

All registrations, changes and cancellations

of registrations shall be made by the relevant

company or trustee, as the case may be, upon a

written request by the relevant shareholder or relevant

beneficiary of the trust, as the case may be."

€0.63