Arrears) (Amendment) Rules, 2022

L.N. 311 of 2022

INCOME TAX ACT

(CAP. 123)

Exemption from Tax on Property Transfers (Set-off of Tax

Arrears) (Amendment) Rules, 2022

IN EXERCISE of the powers conferred by article 96 of the

Income Tax Act, the Minister responsible for finance has made the

following rules:-

The title of these rules is the Exemption from Tax on Citation.

Property Transfers (Set-off of Tax Arrears) (Amendment) Rules, 2022

and these rules shall be read and construed as one with the Exemption S.L. 123. 202.

from Tax on Property Transfers (Set-off of Tax Arrears) Rules,

hereinafter referred to as "the principal rules".

Sub-rule (2) of rule 4 of the principal rules shall be Amends rule 4

substituted by the following new sub-rule

"(2) Notwithstanding the provisions of sub-rule

(a) when a person, hereinafter in this

paragraph referred to also as "the transferor",

makes a transfer to which these rules apply,

relevant tax arrears of another person, hereinafter in

this rule referred to also as "the other party" may, at

the option made jointly by the transferor and the

other party, be treated for the purpose of these rules

as if they were relevant tax arrears of the transferor

in the case that

(i) the transferor is a company, and

the other party is an individual who,

throughout the period from the 31st March

2021 to the date of the transfer, has owned,

directly or indirectly, at least ninety-nine per

cent (99%) of the issued share capital and

voting rights of that company;

(ii) the other party is a company, and

the transferor is an individual who,

throughout the period from the 31st March

2021 to the date of the transfer, has owned,

directly or indirectly, at least ninety-nine per

cent (99%) of the issued share capital and

voting rights of that company; or

(iii) the transferor and the other party

are both companies and, throughout the period

from the 31st March 2021 to the date of the

transfer, the individual direct or indirect

beneficial owners of the two companies were

the same and each such individual held,

directly or indirectly, the same percentage

interest in the nominal share capital and voting

rights in each of the said companies;

(b) relevant tax arrears incurred by a

deceased person shall be treated as relevant tax

arrears of the heirs proportionate to their respective

share of the inheritance.".

€0.18