INCOME TAX MANAGEMENT           [CAP. 372.       1
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 and Act VIII of 2020 .
ARRANGEMENT OF ACT
Articles
PART I Preliminary 1-2PART II Administration 3-4PART III Persons assessable 5-9PART IV Returns 10-29PART V Assessments 30-33PART VI Appeals 34-39PART VII Collection 40-47PART VIII Refunds 48PART IX Offences and penalties 49-57PART X Power to make rules 58-60
 2        CAP. 372. ]                  INCOME TAX MANAGEMENT
PART I
Preliminary
Short title. 1. The short title of this Act is Income Tax Management Act.
Interpretation.
Cap. 123.2. 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
Appointment of 
administrative authority.
Amended by:
V . 1998.2;IX. 2001.30;II. 2004.47.Cap. 123.3.(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 t o
such limitations as he may think f it, delegate to any person an y of
the rights, duties, powers and other functions vested, conferre d 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 indetermining the value of any movable or immovable property forany of the purposes of the Income Tax Acts and such person shal l,
during the term of his appointment, be deemed to be an officeremployed in the administration of the Income Tax Acts and servi ng
in the Commissioner’s department.
Official secrecy.
Amended by: 
XXIV .1995.362;XVI. 1997.8;V . 1998.3;II. 2003.41;IV . 2007.24.L.N. 336 of 2010;
XII. 2014.60;
XIII. 2015.120.4.(1) Except as may be necessary for the purposes of the
Income Tax Acts, or where the Prime Minister otherwise directs,every person having any official duty or being employed in theadministration of the Income Tax Acts shall regard and deal wit h
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 declarati on
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 in
any court, tribunal, Board or committee of enquiry, any return,document or assessment or to divulge or communicate to any cour t,
tribunal, Board or committee of enquiry, any matter or thingcoming under his notice in the performance of his duties under the
Income Tax Acts except as may be necessary for the purpose ofcarrying into effect the provisions of the Income Tax Acts, or for
the purpose, or in the course, of a prosecution for any offencecommitted against any of the provisions of the Income Tax Acts.
(3) Nothing contained in this article shall prevent the
disclosure to any authorised representative of any otherGovernment of such information as is required to be disclosed i n
terms of -
Cap. 123. (a) any arrangement made under article 76 of the Income
Tax Act including the disclosure of such facts as may
                    INCOME TAX MANAGEMENT           [CAP. 372.       3
be necessary to enable proper relief to be given in
Malta or elsewhere under any such arrangement orunder article 89 of the 
Income Tax Act;
(b) any other arrangement between Malta and other States or
their tax authorities providing for the reciprocal exchangeof 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 statementshowing the details of income declared by eachMember 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 forevery subsequent year of assessment up to andincluding the year of assessment following the year inwhich such Member ceases to be a Member of theHouse:
    Provided that if a Member having ceased to be a
Member of the House as aforesaid again becomes aMember of the House, the Commissioner shall alsosubmit to the Speaker the details of the income inrespect of the period covering the years when suchmember ceased to be a Member until he again becomesa Member of the House.
Cap. 579.(b) The Speaker of the House of Representatives shall,
upon a request in writing by any Member of the Houseor by the editor responsible for any newspaperregistered under the 
Media and Defamation Act,
furnish such Member or editor with the details ofincome in respect of any year of assessment declaredby any Member of the House for the purposes of theIncome Tax Acts, provided that the details of incomeso requested have been made available to the Speakerunder the provisions of paragraph ( a) and that prior to
giving such information the Speaker shall notify suchMember whose details of income are being requested,with a copy of such request and of the reply beinggiven.
(6) Notwithstanding anything contained in this article, the
Commissioner may permit the Auditor General of the Governmentor any other officer duly authorised in that behalf by the Audi tor
General to have such access to any records or documents as may be
necessary for the performance of his official duties. The Audit or
General or any such officer shall be deemed to be a personemployed in the administration of this Act for the purpose of t his
article.
Cap. 364.(7) Notwithstanding anything contained in this article, the
Commissioner may make use of the documents, information andreturns 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
 4        CAP. 372. ]                  INCOME TAX MANAGEMENT
relating to duties levied or leviable, and for the collection o f any
penalty inflicted under such Act, a copy of any particularscontained in any document of return as aforesaid, certified by him
or by the chairman of the Administrative Review Tribunalconstituted 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 cas e
where it is necessary to prove the handwriting or the signature  or
the identity of the person who wrote, made, signed or furnishedsuch 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) Notwithstanding the provisions of the other sub-articles of
this article or of any other law, the Commissioner shall furnis h to
the head of the Value Added Tax Department such information,being information obtained by the Commissioner for any of thepurposes of this Act, as may be directed by the Minister.
PART III
Persons Assessable
Chargeability of 
agent or person residing out of Malta.
Amended by:
XIII. 2004.86;IV . 2011.55;VIII.2020.55.Cap. 123.5.(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 an d to
the like amount as such non-resident person would be assessed a nd
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, receivers hip,
branch or management, and shall be so assessable and chargeable  in
the name of the attorney, factor, agent, receiver, branch or ma nager.
(2) Where the registered holder of a share holds such share for
the benefit of another person, the Commissioner shall be entitl ed to
treat such registered holder as beneficially entitled to such s hare
except as provided in sub-article (3).
Cap. 330.
Cap. 331.
Cap. 345.
Cap. 370.(3) Where the registered holder of a share had been licensed
under article 51A of the Malta Financial Services Authority Actand until such time that he is so licensed or is authorised orotherwise 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 un der the
Investment Services Act, to carry out activities within paragraph 4
of the First Schedule to that Act and provides the Commissionerwith a certificate in writing that he holds the share for the b enefit of
a person or persons all of whom are not resident in Malta withi n the
                    INCOME TAX MANAGEMENT           [CAP. 372.       5
meaning of the Income Tax Acts, the Commissioner shall not trea t
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 taxpayeridentification 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 fal se
statement within the meaning of article 52(1)( b).
Cap. 123.(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 purpos es
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 busines s
between those persons can be so arranged and is so arranged tha t
the business done by the resident person in pursuance of hisconnection with the non-resident person produces to the residen t
person either no profits or less than the ordinary profits whic h
might be expected to arise from the business, the non-residentperson 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 t o tax
in the name of a resident person cannot in any individual case be
readily ascertained, the Commissioner may, if he thinks fit, as sess
and charge the non-resident person on a fair and reasonablepercentage of the turnover of the business done by the non-resi dent
person through or with the resident person in whose name he ischargeable as aforesaid and in such case the provisions of theIncome Tax Acts as to the delivery of returns or particulars bypersons acting on behalf of others shall extend so as to requir e
returns or particulars to be furnished by the resident person o f the
business so done by the non-resident person through or with theresident person, in the same manner as returns or particulars a re to
be delivered by persons acting for incapacitated or non-residen t
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 anappeal 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 agen t
is not an authorised person carrying on the regular agency of t he
 6        CAP. 372. ]                  INCOME TAX MANAGEMENT
non-resident person, or a person chargeable as if he were an ag ent
in pursuance of sub-articles (5), (6) and (7), in respect of ga ins 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 carrie s
out transactions with other non-residents in circumstances whic h
would make him chargeable in pursuance of sub-articles (5) and (6)
in the name of a resident person shall not of itself make himchargeable in respect of gains or profits arising from those sa les or
transactions.
(10) Where a non-resident person is chargeable to tax in the
name of any attorney, factor, agent, receiver, branch or manage r in
respect of any gains or profits arising from the sale of goods or
produce manufactured or produced out of Malta by the non-reside nt
person, the person in whose name the non-resident person is sochargeable 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 beexpected to have been earned by a merchant or, where the goods are
retailed by or on behalf of the manufacturer or producer, by aretailer of the goods sold, who had bought from the manufacture r or
producer direct, and, on the proof to the satisfaction of theCommissioner of the amount of the profits on the basis aforesai d,
the assessment shall be made or amended accordingly.
Cap. 370.(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 othe r
representative in respect of gains or profits arising to the no n-
resident person resulting from the provision in Malta by the ag ent
or such other representative of any of the services listed in t he 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 investmentservices to the non-resident person is at a rate which isnot less than that which is customary for that class ofbusiness, and in the case of an agent or otherrepresentative who provides investment services aspart 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 investmen t
service on behalf of his principal whether he undertakes thetransaction himself or gives instructions to another person.
(13) The activities of the agent or other representative shall n ot
affect the residence of the non-resident person for tax purpose s.
Acts to be done by 
trustees, etc.6. 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 inco me
                    INCOME TAX MANAGEMENT           [CAP. 372.       7
of any person for whom he acts and for paying the tax chargeabl e
thereon.
Manager of 
corporate bodies of persons.
Amended by:
V . 2012.44.7.(1) The manager or other principal officer of every body of
persons shall be answerable for doing all such acts, matters an d
things as are required to be done by virtue of the Income Tax A cts
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 f or
payment personally, and jointly and severally with any other pe rson
responsible therefor, if at any time after 1st January, 1979 he  had in
his possession or control any property belonging to the body ofpersons 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 sharehol ders
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 w hich
he knows of or might reasonably expect to be payable by thecompany under the Income Tax Acts and in default, such liquidat or
shall be liable personally, and jointly and severally with any other
person responsible therefor, for payment of the tax due:
Cap. 386.Provided that this sub-article shall not apply to an official
receiver, or any other person, appointed in accordance with theprovisions of article 225 of the 
Companies Act.
Lists to be 
prepared by representative or agent.8. Every person who in whatever capacity is in receipt of any
money or value being income arising from any of the sourcesmentioned in the Income Tax Acts or belonging to any person whois chargeable in respect thereof, or who would be so chargeable  if
he were resident in Malta and not an incapacitated person, shal l
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 no tice
from the Commissioner shall apply to any such lists.
Indemnification of 
representative.9. Every person answerable under the Income Tax Acts for
the payment of tax on behalf of another person may retain out o f
any money coming to his hands on behalf of such other person somuch thereof as shall be sufficient to pay such tax, and shall be and
is hereby indemnified against any person whatsoever for allpayments made by him in pursuance and in virtue of the Income
Tax Acts.
 8        CAP. 372. ]                  INCOME TAX MANAGEMENT
PART IV
Returns
Return of income.
Substituted by:IX. 1999.2.
Amended by:
IV . 2011.56;VII.2018.54;VII.2019.46.10. (1) The Commissioner may, by notice in writing, require
any person to furnish him by not later than such date as may beprescribed with a return of income together with and containingsuch particulars, statements, accounts, computations or otherdocuments as may be necessary to enable such person’s income an d
allowable deductions and the tax payable by or repayable to tha t
person to be readily ascertained in accordance with and for thepurposes 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 computationshowing:
(a) the chargeable income of that person for the year of
assessment on the basis of the information containedin 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 thetax 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 ofassessment:
(i) any provisional tax paid and any tax deducted at
source that falls to be set off or that is availableas a credit in accordance with the provisions ofthe Income Tax Acts against the tax computedunder paragraph ( b);
Cap. 123.(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 lawand relating to the chargeable income computedunder paragraph (a):
S.L.325.06
Cap. 325.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 termsof the 
Business Promotion Regulations  to set-off
any particular tax credits or any balance thereofgranted 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
                    INCOME TAX MANAGEMENT           [CAP. 372.       9
shall be entitled to determine the order in which
such tax credits or part thereof shall be claimedfor set-off against its income; and
(iv) any other amount paid on account of the tax
chargeable for the year of assessment ascomputed under paragraph ( b).
(3) A self-assessment shall not be construed as being an
assessment for any purpose of the Income Tax Acts and anyreference in the said Acts to an assessment shall not be constr ued 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 toget her
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-artic le
(1), and unless it is accompanied by such documents as are requ ired
under the other provisions of this article.
Commissioner may 
request information.
Added by:
II. 2003.42.
Amended by:
II. 2005.31.Substituted by:I. 2008.2.
Amended by:
XXXIII. 2015.108.10A.   (1) The Commissioner may, when and as often as he
deems necessary, give notice in writing to any person to furnis h
him, within a reasonable time stated in such notice, not being less
than thirty days, such information as may be necessary in order  to
provide information, including documents, to foreign taxauthorities where arrangements between Malta and the respectiveState 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 thepurposes of the Income Tax Acts. The provisions of this articleshall 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, o r 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 ofthis article, to attend before him and to examine suchperson on oath or otherwise;
(c) to require any person to produce for examination any
books, documents, accounts (including bankstatements, passbooks and other bank documents) andany other document which the Commissioner mayrequire or a copy or extract thereof;
 10        CAP. 372. ]                  INCOME TAX MANAGEMENT
(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 maybe prescribed any document prepared by that person oran 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 byhim;
(g) to require any person to provide information,
documents or written statements in such other form asthe Minister may prescribe.
Rules for the 
collection and maintenance of information.(5) The Minister may make rules for the collection and
maintenance of information, even where arrangements betweenMalta and other relevant jurisdictions, or their tax authoritie s, for
the purposes of exchange of information for tax purposes, are n ot in
force:
Provided that the person that is obliged to collect and
maintain such information according to such rules shall not beobliged 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 informatio n for
tax purposes, enters into force.
Where notice is not 
received.Substituted by:IX. 1999.2.11. Where any person chargeable with tax has not received the
notice mentioned in article 10(1)in respect of any year ofassessment for which he is so chargeable by such date as may beprescribed for the purpose of this article, the provisions of t he said
article 10 shall apply to him as if he has been duly served wit h 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 sha ll
accordingly be the duty of that person to furnish a return of i ncome
under that article including, when applicable, a self assessmen t for
that year and to comply with all the other provisions of the sa id
article.
Election not to 
furnish return. Substituted by:IX.1999.2.
Amended by:
VIII.2020.56
*.12. (1) Notwithstanding the provisions of articles 10 and 11,
but without prejudice to the othe r provisions of this Part, a p erson
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 -
Cap. 123.(i) does not include any income falling under article
4(1)( a) of the Income Tax Act; and
*Applicable as from year of assessment 2021.
                    INCOME TAX MANAGEMENT           [CAP. 372.       11
Cap. 123.(ii) does not exceed the amount to which a nil rate of
tax applies in terms of the relevant provisions ofarticle 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 thatwas subject to deduction at source, including incomesubject to a nil rate of deduction, in terms ofregulations made for the purposes of article 23 andfully reported in a statement or statements of earningsprepared in accordance with the said regulations andheld in his possession;
(c) a person who is designated as a person to whom this
article applies by regulations that may be prescribedunder this article.
Cap. 123.(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 forthe purposes of sub-article (2), and if that personmakes an election under this article he shall be deemed
for the purposes of the Income Tax Acts to have optednot to disclose that income and such income shallaccordingly 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 disclosewere it not for the provisions of this article shall betaken into account in determining his total income forany purpose of the Income Tax Acts.
Cap. 123.(c) When a person makes an election under this article and
he is also eligible to make an election for a separatecomputation under article 50 of the 
Income Tax Act,
that person shall be deemed to have taken the moreadvantageous option under that article according to hisparticular circumstances.
Cap. 123.(d)*With respect to a married individual living with his
spouse, other than an individual in respect of whom anelection for a separate return for the purposes of article49A of the  
Income Tax Act is effective references in
this article to an individual shall be construed asreferences to the responsible spouse and references tothe income or the chargeable income of an individualshall be construed as references to the income or thechargeable income of both spouses.
(4) ( a) An election under this article shall be made by the
delivery to the Commissioner of a signed declarationconfirming the person’s eligibility to make the electionin terms of this article and complying with the otherprovisions of this sub-article.
(b) An election shall not be deemed to have been made
*Applicable as from year of assessment 2021.
 12        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 suchdocuments 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.
No obligation to 
furnish return of income.
Added by:
IV . 2007.25.12A. (1) Notwithstanding the provisions of articles 10, 11 and
12, but without prejudice to the other provisions of this Part,  a
person shall not be required to furnish a return of incomementioned in article 10(1) or to make an election in terms of a rticle
12 where the Commissioner gives notice in writing to this effec t 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 purpo ses
of the Income Tax Acts as known to the Commissioner at the timeof 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 hig her
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 theperson in receipt of such notice has agreed in writing that therefund 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 h as
failed to abide by the provisions of sub-article (3) the provis ions of
article 48(9) shall apply.
Further returns.
Substituted by:IX. 1999.2.
Amended by:
II. 2009.29.13. (1) The Commissioner may when and as often as he thinks
necessary give notice in writing to any person who has filed areturn under article 10 requiring him to furnish, within a reas onable
time stated in such notice, not being less than thirty days, fu ller or
further returns respecting any matter as to which a return isrequired 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 ofincome and to make a self assessment under article 10 and tocomply with the other provisions of that article within a reaso nable
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 suchcorrections to or additions to that return as he may considerappropriate by furnishing a further return in such manner and o n
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 taxpayable by or an increase in the tax repayable to that person a s
resulting from a previous return, it shall not have any effect for the
                    INCOME TAX MANAGEMENT           [CAP. 372.       13
purposes of this Act if it is made later than five years from t he
expiration of that year of assessment.
(5) A person who has made an election under article 12 with
respect to a year of assessment may at any time within that yea r of
assessment or within five years from the expiration thereof, bu t
before an assessment is made under article 31, furnish theCommissioner with a return of income including a self-assessmen t
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 dee med to
be a return of income made under article 10 and shall be read a nd
construed as one with any other return that may have been so ma de
for that same year, and any determination made under article 31shall 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 havebecome liable in accordance with any provision of theIncome 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 madea default by reason only of the fact that the return issubmitted after the time prescribed for the purposes ofarticle 10(1).
(7) The Commissioner may give notice in writing to any person
informing him that an enquiry will be conducted into that perso n's tax
declarations and liabilities in respect of such years of assess ment as
shall be indicated in the said notice.
Power to call for 
returns, books, etc.
Amended by:
II. 2003.43;|IV . 2011.57.Cap. 123.14.(1) For the purpose of obtaining full information in respect
of any person’s income, the Commissioner may, notwithstandingany other provision of this Act or of the 
Income Tax Act, give
notice to such person requiring him within a reasonable time tocomplete and deliver to the Commissioner any return specified i n
such notice and/or to attend personally or by representative be fore
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 obtainin g
full information in respect of any person’s income, give notice  in
writing to such person requiring him to furnish the Commissione r
within the time indicated in such notice, not being less than t hirty
days from the date of service of such notice, a statement conta ining
particulars of -
(a) all property held in his own name or in the name of his
spouse, minor children or dependents, or in any othername, in which he is or has been interested or has orhas had a beneficial interest, or in respect of which hehas or has had the power to operate or dispose, jointlyor solely, in his own economic interest and which
 14        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 adesignated person referred to in sub-article (3), duringthe 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, subsequent to a request for information made
in accordance with the provisions of sub-articles (1)and (2), the Commissioner has reasonable grounds tosuspect that tax has been, is, or may be evaded by anyperson, he may request, by notice in writing to adesignated person, that the designated person providethe Commissioner, within the time indicated in suchnotice not being less than thirty days from the date ofservice of such notice, with all such information anddocumentation which the designated person may haverelating to property of any kind or description,transferred or delivered to him by that person andowned, possessed, or held by the designated personunder any title on behalf of or for the benefit of anysuch person on the date of the said notice or during theperiod specified in such notice not commencing earlierthan five years from the da te of such notice; provided
that the designated person shall not be bound toprovide information to the Commissioner in respect ofany beneficiaries for whose benefit the property maybe held or the terms and conditions under which it is soheld.
Cap. 377.(b) Any designated person who receives such notice shall
provide the Commissioner with the informationrequested in the notice and this notwithstandinganything to the contrary in the Income Tax Acts, anyprovision of the 
Professional Secrecy Act, any
obligation of secrecy or confidentiality, or to any otherrestriction relating to the disclosure of informationwhether arising from a provision of law or anyagreement or other arrangement.
The Commissioner shall keep confidential any
information provided to him by the designated personand shall not disclose such information to any otherperson except where the Commissioner is bound at lawto effect such disclosure or where he requires to usesuch information in the context of proceedings underthis Act; provided that the Commissioner may reportany act or failure by the designated person to the
                    INCOME TAX MANAGEMENT           [CAP. 372.       15
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 theinvestigation being carried out by the Commissioner asto whether tax has been, is, or may be evaded by therelevant person being investigated and, or any relatedproceedings under this Act.
(c) The Commissioner shall specify in a notice issued
under this article what information he requires andwhether with reference to the property held on the dateof the notice and, or at any point during a period oftime (not commencing earlier than five years from thedate of such notice), and the designated personreceiving the notice shall supply the followinginformation:
(i) details of any such property owned, possessed or
otherwise held under any title and which hadbeen transferred or delivered (whether directlyor indirectly through a transaction or a numberof transactions which the designated person isaware of) to the designated person or vested insuch designated person by or on the instructionsof the person in respect of whom notice has beengiven by the Commissioner to the designatedperson in terms of paragraph ( a); and
(ii) details of the person or persons who transferred
or delivered or made arrangements for thedesignated person to receive the property or onwhose behalf the property was so transferreddelivered or vested in the designated persons:
Provided that this paragraph ( c) shall also apply to any
property transferred or delivered to the designatedperson and is no longer held by the designated personor has been converted into a different form of property
or has increased or decreased in value or extent or hasbeen transferred to another designated person, butshall not apply where the property has been heldtemporarily for the purpose of a transaction and hasbeen 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 indirectlythrough a transaction or a number oftransactions which the designated person isaware of) to the designated person or vested insuch designated person by the person in respectof whom notice has been given by theCommissioner to the designated person in termsof paragraph ( a); or
(ii) holds or has held the aforesaid property on a
 16        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 theCommissioner to the designated person in termsof paragraph ( a),
he shall inform the Commissioner accordingly and
shall have no further obligations in this regard unlessthe Commissioner seeks further informationspecifically on such circumstances in which case theprovisions of this article shall apply mutatis mutandis .
(e) Where a notice has been given by the Commissioner to
a designated person in terms of paragraph ( a), the
Commissioner shall, within fifteen days of issue ofsuch notice, inform by a further notice in writing theperson in respect of whom such notice was given, thathe has issued a notice under this article, and anydesignated person in receipt of any such notice mayinform his customer, principal or other person whomay have delivered, settled, donated or otherwisetransferred property to the designated person of thereceipt of such notice and his response thereto.
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 thelatter case be deemed to have been served within threeworking 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 inrelation to rights and interests whether vested,contingent, voidable or future, and including anymoney, investments, and amounts in savings,loan and other bank accounts (whether fixed,overdraft, current, deposit, or otherwise, andwhether 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 workor otherwise, and includes without limitationany of the following:
Cap. 371.(A) a person who is in possession of a valid
licence issued in terms of the Banking Act;
or
Cap. 370.(B) a person who is licensed in terms of the
Investment Services Act; or
Cap. 403.
Cap. 487.(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
                    INCOME TAX MANAGEMENT           [CAP. 372.       17
Cap. 331.(D) a person who is authorised under the
Trusts and Trustees Act to act as a trustee
or as an administrator of any privatefoundation; or
(E) advocates, notaries, legal procurators,
accountants, auditors and other personsholding warrants to exercise a profession,
and irrespective of whether such person is in
actual possession of authorisations or is exemptfrom requiring such authorisations under anylaw or is acting in breach of law when holdingsuch property without authorisation required todo so by applicable law;
(iii) owning, possessing and holding property
includes owning, possessing and holding withothers or through others and, or enjoying apower to operate or dispose of such property insuch manner as renders secret the ownershiprights or interests of the person beinginvestigated and does not include circumstanceswhere such person remains registered as theowner of the property in a public register inMalta or where the designated person is owning,holding or possessing the property temporarilyfor the purposes of a transaction relating to orinvolving such property or is otherwise a simpleadministrator of such property;
(iv) reasonable grounds on the part of the
Commissioner to suspect that tax has been, is ormay be evaded by any person shall include butnot be limited to the following:
(A) a refusal by that person to provide the
Commissioner with any documentation orinformation as may have been requestedfrom him by the Commissioner in relationto any property which he owns, possesses,or holds at that time through anotherperson including designated persons, orany property previously owned, possessedor held and subsequently disposed ofunder any title whatsoever by such personat an earlier date;
(B) where a notice in terms of article 29 is not
made as the taxpayer could not be found orfor other reasons attributable to thetaxpayer, and in accordance with the saidarticle 29, the Commissioner publishes anotice in the Gazette and in one or moredaily newspapers stating that a notice hasbeen made and inviting the taxpayer to callfor it at the Department;
(C) where, after being requested by the
 18        CAP. 372. ]                  INCOME TAX MANAGEMENT
Commissioner by means of a notice in
writing, such person fails to producewithout any reasonable excuse any books,records, documents, accounts, electronicdata and a correct statement referred to insub-article (2) within thirty days from thedate of service of such notice;
(D) such person gives any false answer,
whether verbally or in writing, to anyquestion or request for information askedor made in accordance with the provisionsof the Income Tax Acts;
(E) such person prepares or maintains any
false books of account or other records orfalsifies any books of account or records.
(g) Where a designated person gives any false, misleading
or incorrect information in relation to a notice issuedunder this sub-article he shall be guilty of an offenceand shall, on conviction, be liable to a fine ( multa ) of
not less than ten thousand euro (€10,000) and notexceeding twenty-three thousand euro (€23,000).
Returns to be 
deemed to be furnished by due authority.15. A return, statement or form purporting to be furnished
under the Income Tax Acts by or on behalf of any person shall f or
all purposes be deemed to have been furnished by that person or  by
his authority, as the case may be, unless the contrary is prove d, and
any person signing any such return, statement or form shall bedeemed to be cognizant of all matters therein.
Official 
information.
Amended by:
II. 2005.32;I. 2008.3.16. The Commissioner may require any person having an
office or employment, whether paid or otherwise, with theGovernment of Malta or with any organisation or other bodywhether having a legal personality or not in which the Governme nt
of Malta or any such body as aforesaid have a controlling inter est
or over which they have effective control to supply such partic ulars
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 suchperson 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 thisarticle, be obliged to disclose any information in relation to a
person in respect of which such person having such office oremployment is under the duty of professional secrecy. Where anyinformation is protected by professional secrecy for the benefi t of
any person, nothing in this proviso shall preclude the giving o f such
information in respect of any other person, excluding therefrom  the
name of the person in whose interest such protection is given
Professional 
secrecy.
Amended by:
I. 2008.4;IV . 2011.58;
VII.2018.55.*17. Without prejudice to the provisions relating to the duty of
professional secrecy, and subject to articles 10A and 14(3), no request
for information shall be made pursuant to any power under the
Income Tax Acts from any of the following licensed persons:
                    INCOME TAX MANAGEMENT           [CAP. 372.       19
Cap. 371. (a) a bank licensed under the Banking Act;
Cap. 290 - 
Repealed.(b) an insurance company in respect of life assurance
business which is carried on pursuant to a licencegranted under the 
Insurance Business Act;
Cap. 370.
Cap. 370.
Cap. 345.(c) any person licensed to carry on investment business
under the Investment Services Act;
(d) a collective investment scheme licensed under the
Investment Services Act;
(e) a stockbroker licensed under the Malta Stock
Exchange Act,
except solely for the purposes of determining the taxable incom e of
such licensed person, and in replying to any such request thelicensed person shall not disclose any information in relation to the
affairs of persons with whom the licensed person has or has had  a
professional relationship:
Cap. 123.Provided that nothing in this article shall prejudice the right
of the Commissioner to receive the accounts referred to in articles 33
and 34  of the Income Tax Act.
Substitution of 
original returns.
Amended by:
IX. 1999.3.18. (1) Where any return, statement or form completed and
delivered to the Commissioner for the purposes of the Income Ta x
Acts has been lost or destroyed, or has been so defaced or dama ged
as to be illegible or otherwise useless, the Commissioner mayrequire the person by or on whose behalf such return, statement  or
form has been completed and delivered to furnish him to the bes t of
his ability with a duplicate copy of such return, statement or form
or to give such information, particulars or evidence as may berequired in replacement.
(2) Nothing in this article contained shall affect the provision s
of article 30(4) and (5) or article 31(5) and (6), nor shall th e
Commissioner be empowered to require a copy of any return,statement or form, or the provision of any information, particu lars
or evidence in respect of any year of assessment where the rais ing
of the relative assessment is statute-barred in terms of the
provisions of the said sub-articles.
Records to be kept. 
Amended by: 
XX.1996.21;II. 2007.23;IV . 2007.26;VII.2018.56.19. (1) Every person carrying on a trade, business, profession
or vocation shall keep proper and sufficient records of his inc ome
and expenditure to enable his income and allowable deductions t o
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 orexpenditure takes place; and
(ii) all sales, purchases or services rendered, as well
as any other transaction, act or operation
* Applicable as from the year of assessment 2019.
 20        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 acompany, 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 o f
assessment from keeping any record or statement referred to in sub-
article (2).
(4) The records required to be kept under the provisions of this
article shall be supported by such documents as may be appropri ate
in the circumstances, including -
Cap. 386.(a) in the case of a company registered in Malta, the
balance sheet and profit and loss account, which shallcomply in every respect with the applicable provisionsof articles 167, 168 and 169 of the 
Companies Act and
notwithstanding any exemption made by that Act or byany other law, such balance sheet and profit and lossaccount shall be accompanied by a report made out bya certified public auditor as provided by the applicableprovisions of articles 179 and 181 of that Act:
Provided that in the case of a company which is not
resident in Malta, such records shall be those whichrefer to the company’s activities in Malta:
Provided further that the auditor’s report mentioned in
this paragraph shall not be required for the first twoaccounting periods of a newly registered companywhose sole shareholders are individuals in possession of
educational qualifications as may be prescribed who have
set up the new company within three years of obtaining
the said qualifications and subject to such conditions,
including the amount of turnover, as may beprescribed.'
(b) in the case of a co-operative society, the audited
financial statements of the society, prepared in allrespects as required by the law for the time being inforce regulating co-operative societies andaccompanied by any report which is by any such lawrequired to accompany the audited financial statementsof 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 ni ne years
after the completion of the transactions, acts or operations to  which
they relate:
Cap. 386.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.
                    INCOME TAX MANAGEMENT           [CAP. 372.       21
Certain powers of 
the Commissioner.
Amended by:
XI. 2001.31;II. 2005.33;L.N. 425 of 2007;IV . 2011.59.20. (1) The Commissioner, or any officer authorised by him in
writing shall have full and free access to all business orprofessional premises such as offices, factories, workshops,warehouses, garages and land serving such purposes in order toinspect 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 existe nce of
merchandise and means of producti on and transport and shall hav e
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 wi lls and
registers thereof during the life of the testator or testators,  without
the permission in writing of such testator or testators:
Provided further that the Commissioner or any officer
authorised by him as aforesaid may not inspect any document orother record which is protected by the duty of professional sec recy
or listen to any conversation or recording device which is prot ected
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, requir es
access to premises occupied in whole or in part for the purpose s of
habitation, such access shall require the presence of an office r 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.
Cap. 55.(3) The Commissioner shall, for the purpose of assessing the
tax under the Income Tax Acts, be entitled to make the applicat ion
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 comp ly with
any request made by the Commissioner or by the said officer inaccordance with the provisions of this article, he shall, onconviction by the Court of Magistrates, sitting as a court ofcriminal judicature, be liable to a fine ( multa ) of not less than fifty-
eight euro (58) and not exceeding four hundred and sixty-five e uro
(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 byhim, has reasonable grounds to s uspect that tax is being evaded  in
respect of operations carried out by the taxpayer on the premis es
referred to in sub-article (1).
Return to be 
delivered by employer.21. (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 - 
 22        CAP. 372. ]                  INCOME TAX MANAGEMENT
(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 per son
engaged in the management of a company, shall be deemed to be aperson employed.
Payment of tax of 
individuals employed but not domiciled or ordinarily resident in Malta.22. (1) In this article the expression "individual to whom this
article applies" means an individual who is not domiciled in Ma lta
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 w ith tax
under the provisions of the Income Tax Acts, he shall give noti ce in
writing to the Commissioner not later than three months after t he
date of the commencement of such employment, stating the fullname and address of such individual, the date of commencementand 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 chargea ble
with tax under the Income Tax Acts, shall give notice in writin g to
the Commissioner not less than one month before such individualceases to be employed by him in Malta stating the name andaddress 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 personabout to leave or intending to leave Malta on termination of hi s
employment with such person shall give notice in writing to theCommissioner of the expected date of departure of such individu al.
Such notice shall be given not less than one month before theexpected 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 moni es
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 i s
about to cease to be employed by such person in Malta, he shall  not
without the permission of the Commissioner, notwithstanding theprovisions 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 t o be
given under sub-article (4).
                    INCOME TAX MANAGEMENT           [CAP. 372.       23
(6) The Commissioner may by notice in writing whenever he
thinks fit declare any person who employs in Malta an individua l to
whom this article applies, being an individual who is or is lik ely to
be chargeable with tax under the Income Tax Acts, to be therepresentative taxpayer of such individual, and the person sodeclared shall be the representative taxpayer of such individua l for
the purposes of the Income Tax Acts and may be required to payany tax due by such individual from property or monies, includi ng
pension, salary, wages or any remuneration which may be due byhim to such individual and, in default, such payment shall,notwithstanding the provisions of any other law, be recoverablefrom the representative taxpayer so declared by the Commissione r
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 individu al who does not have an employe r
in Malta the foregoing provisions of this article shall apply t o such
resident person in the same manner as if he were the employer o f
the said individual. 
Payment by 
deduction at source from certain income.
Amended by:
V . 1998.5;IX. 1999.4;II. 2003.44;II. 2004.49;L.N. 425 of 2007;
IV . 2011.60;
VII.2018.57.Cap. 123.23. (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 paymentdeduct tax therefrom at such amount and in such manner as may b e
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 suchperiod as may be prescribed.
(3) Deductions of tax made under sub-article (1) shall be set of f
for the purposes of collection against the tax chargeable on th e
corresponding income for the year of assessment following thatduring which the relative deductions are made, or for any otheryear of assessment as the Commissioner may elect and any taxwhich cannot be set off as aforesaid shall be refunded inaccordance 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 t hat
income in a return of income furnished in accordance with artic le
10 or made an election under article 12 for the year of assessm ent
following that during which the deductions were made or hascomplied with such conditions that may be prescribed to the ext ent
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 beenremitted to the Commissioner and the Commissioner is satisfiedthat 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
 24        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 theprovisions of such rules, he shall be liable to the prescribedadditional tax which the Commissioner is empowered to imposeunder sub-article (5) hereof and where applicable he shall, inaddition, be chargeable with the tax which should have beendeducted 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 rulesreferred to under this article he may at any time serve upon su ch
person a default notice as prescribed showing the tax which sho uld
have been deducted or remitted together with interest and/or an y
additional tax imposed upon him as aforesaid, sohowever that su ch
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 i n
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 theCommissioner in writing contesting such notice in the manner an d
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 beenrefused, the Commissioner may, where the payment of the amountdue has not already been made, serve a demand notice on suchperson showing the tax which should have been deducted orremitted together with interest and/or any additional tax impos ed
upon him; and, unless the contrary is proved, the said notice s hall
be sufficient evidence that the amount shown therein is the amo unt
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 inaccordance with this sub-article may appeal such decision in acourt of law within fifteen days from the date of service of su ch
notice.
(8) The Commissioner may in his discretion remit wholly or in
part any additional tax imposed under the provisions of this ar ticle.
Cap. 123.(9) Any additional tax imposed under the provisions of this
article shall not be deemed to be part of any tax paid or payab le 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 tocommence proceedings in respect of an offence under theprovisions of sub-article (13).
                    INCOME TAX MANAGEMENT           [CAP. 372.       25
Cap. 318.(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, shallconstitute a privileged claim over the assets of the employer(including the assets of a principal officer in the case of a b ody of
persons) ranking immediately after the wages of employees andclaims of the Director of Social Security for any amounts due b y
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.
Cap. 123.(12) Any person to whom this article applies shall at all times
maintain proper and sufficient records as may be prescribed andshall, whenever called upon to do so by the Commissioner or byany public officer authorised by him in writing, produce forinspection at such person’s premises or as otherwise directed, all
wage sheets, lists and documents and other records whatsoeverrelating to any payment made by him of income chargeable underparagraph ( 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 deductio n
made therefrom or to the accounting of any such payment or taxdeduction:
 Provided that all such records shall be retained for a period
of not less than nine years after the completion of the transac tions,
acts or operations to which they relate and shall be made readi ly
available for examination at any time during such period.
 The aforesaid period of prescription shall in no case
commence before such person has fully complied with theprovisions 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-a rticle
(1) shall be liable, on conviction, to a fine ( multa ) of not less than
one hundred and sixteen euro (116) and not exceeding onethousand and one hundred and sixty euro (1,160) or toimprisonment for a term not exceeding six months or to both suc h
fine and imprisonment, and to a further fine ( multa ) of not less than
four euro (4) but not exceeding twenty-three euro (23) for ever y
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 orcompound any proceedings thereunder:
Provided further that the offence under this sub-article shall
continue to subsist until the offender shall have conformed andcomplied with the provisions of this article or of any rules re ferred
to therein.
 26        CAP. 372. ]                  INCOME TAX MANAGEMENT
Return to be 
furnished of income received on account of, or paid to, other persons.
Amended by:
IX. 1999.5;XIII. 2004.87;I. 2008.5.24. (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 someother 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 perso n
requiring him to furnish within the time limited by such notice , not
being less than thirty days from the date of service of such no tice, 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 dis close
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 whomsuch profits or income as are mentioned in that sub-article bel ong
or are paid or to any particular person or class of persons asaforesaid.
Returns to be 
furnished by trustees.
Added by:
XIII. 2004.88.24A. (1) The Commissioner may give notice to a trustee of a
trust requiring him to furnish, within the time limited by suchnotice, not being less than thirty days from the date of servic e of
such notice, a return containing -
Cap. 123.(a) a true and correct statement, certified by a warrant
holder referred to in article 57, of the incomeattributable to such trust as referred to in article 27B ofthe 
Income Tax Act; and
Cap. 123. (b) (i) the names and addresses of those beneficiaries to
whom income has been allocated as provided inarticle 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 eachbeneficiary 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 underthe provisions of article 10.
(b) A trustee who issues a false certificate to the
Commissioner shall be guilty of making a falsestatement within the meaning of article 52(1)( b).
                    INCOME TAX MANAGEMENT           [CAP. 372.       27
Returns to be 
furnished by settlors.
Added by:
XIII. 2004.88.
Amended by:
L.N. 425 of 2007.24B. 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 theGazette, 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 ofsuch trust. This information shall be submitted to theCommissioner by not later than thirty days from the date of therelevant settlement. Any settlor who fails to comply with theprovisions of this article shall be guilty of an offence and li able on
conviction to a fine (multa) of not less than one hundred and
sixteen euro (116) and not exceeding one thousand and onehundred 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.
Powers of the 
Commissioner to request information.
Added by:
II. 2005.34.
Amended by:
I. 2008.6.24C. 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 theCommissioner, relates to the income or the economicactivities 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 tothe income or the economic activity of any person orclass of persons:
Provided that, subject to article 10A, the information
requested under this article may not include:
Cap. 377.(i) any information falling within the definition of a
"professional secret" or "secret" in terms ofarticle 2 of the 
Professional Secrecy Act; or
Cap. 586.(ii) any information falling within the definition of
"sensitive personal data" in terms of article 2 ofthe 
Data Protection Act:
Cap. 586.Provided further that, subject to article 10A, where any
such information is protected by professional secrecy or theprovisions of the 
Data Protection Act and such protection is for the
benefit of any person, such information in respect of any otherperson shall be given excluding therefrom the name of the perso n
in whose interest such protection is given.
Occupiers to 
furnish return of rent payable.25. The Commissioner may give notice in writing to any
person who is the occupier of any house, property, land orindustrial building requiring him to furnish within a reasonabl e
 28        CAP. 372. ]                  INCOME TAX MANAGEMENT
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.
Return of lodgers 
and inmates.26. The Commissioner may give notice in writing to any
person requiring him within the time limited by such notice, no t
being less than thirty days from the date of service of such no tice,
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 in stitution,
and has been so resident, except for temporary absences,throughout the preceding three months.
Certain 
partnerships.
Amended by:
V . 2012.45;XIII. 2015.121;XV . 2016.27.Cap. 123.27. (1) Where income from any source accrues to or is
received by a partnership that is carried on by any two or morepersons jointly and the partnersh ip is not a "company" in terms  of
article 2 of the Income Tax Act (including, for the avoidance o f
doubt, partnerships in respect of which no election in terms of  sub-
article (6) of this article is in force), the income of any par tner from
the partnership, shall be deemed to be the share to which he wa s
entitled during the year preceding the year of assessment in th e
income of the partnership, such income being ascertained inaccordance with the provisions of the Income Tax Acts and shall  be
included in the return of income to be made by such partner und er
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 inco me
being ascertained in accordance with the provisions of the Inco me
Tax Acts, and declare therein the names and addresses of the ot her
partners in the firm together with the amount of the share of t he
said income to which each partner was entitled for that year; a nd -
(a) where no partner is resident in Malta, the return shall
be made and delivered by the attorney, agent, manageror 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 inaccordance with a notice from the Commissioner shallapply 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 joi ntly,
the particular income shall be deemed to have accrued to or bee n
received by such person entitled to a share of such income as t he
Commissioner may elect, and assessment of tax shall be madeaccordingly.
                    INCOME TAX MANAGEMENT           [CAP. 372.       29
Cap. 123.(4) Where an assessment has been made in accordance with the
provisions of sub-article (3), the partnership shall not be con sidered
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.
Cap. 123.(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 comp any
for all purposes of the Income Tax Acts, and in such case, theprovisions of this article shall not be applicable thereto. Suc h an
election shall be made on such form and under such conditions a s
the Commissioner may determine and shall be effected not laterthan 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 reasonabl e
cause, authorises a change following a request in writing made by
the partnership or EEIG, as the case may be, on such form andunder such conditions as the Commissioner may determine.
Signature of 
notices.
Amended by:
II. 2003.45.28. (1) Every notice to be given by the Commissioner under
the Income Tax Acts shall be signed by the Commissioner or bysome person or persons from time to time appointed by him for t hat
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 or persons 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 furnishparticulars to the Commissioner, or any notice under the Income
Tax Acts requiring the attendance of any person or witness befo re
the Commissioner shall be personally signed by the Commissioneror by any person duly authorised by him.
(2) A signature attached to any notice and purporting to be the
signature of any person so appointed shall be taken to be thesignature of that person until the contrary be shown. 
Service of notices.
Amended by:
I. 2010.46;VII.2018.58.29. (1) Notice may be served on a person either personally or
by electronic means to his verified email address or by being s ent by
post to his last known business or private address, and shall i n the
latter case unless the contrary is proved be deemed to have bee n
served, in the case of persons resident in Malta, not later tha n the
third day succeeding the day when posted, and in the case of
 30        CAP. 372. ]                  INCOME TAX MANAGEMENT
persons not so resident, the day succeeding the day on which th e
notice would have been received in the ordinary course by post,  and
in proving such service it shall be sufficient to prove that th e letter
containing the notice was properly addressed and posted:
Provided that where such notice is not made because the
taxpayer could not be found or for other reasons attributable t o him
and the Commissioner publishes a notice in the Gazette and in o ne
or more daily newspapers stating that a notice has been made an d
inviting the taxpayer to call for it at the Department, then su ch
notice shall also be deemed to have been duly notified.
Free postage. (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 envelop es
marked "Income Tax".
Time and date for 
delivery of returns, etc., and for payments.
Added by:
IX. 1999.6.29A. (1) Any period or date laid down in or under the Income
Tax Acts for the furnishing, delivery or service of a return, n otice
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 beprescribed.
Cap. 252.(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 saidSaturday or public holiday.
PART V
Assessments
Assessments 
relating to years preceding the year of assessment 
1999.
Substituted by:IX. 1999.7.
Amended by:
II. 2004.50.30. (1) Where a person has delivered a return of income for
any year of assessment preceding the year of assessment 1999 th e
Commissioner may -
(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 orobtained by him, refuse to accept the return and to thebest of his judgement determine by order in writing theamount of the chargeable income of the person andassess 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 th e
Commissioner is of the opinion that such person is liable to pa y tax,
he may, according to the best of his judgement, determine theamount of the chargeable income of such person and assess himaccordingly, but such assessment shall not affect any liabilityotherwise incurred by such person by reason of his failure orneglect to deliver a return.
                    INCOME TAX MANAGEMENT           [CAP. 372.       31
(3) Where it appears to the Commissioner that a person has not
been assessed or has been assessed at a lesser amount than thatwhich ought to have been charged for any year of assessmentpreceding the year of assessment 1999, the Commissioner mayassess such person at such amount or additional amount as,according to his judgement, ought to have been charged and theprovisions 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 w ithin
that year of assessment or within eight years after the expirat ion
thereof:
Provided that in cases where there has not yet been a final
decision or a final judgement, the notification of an assessmen t to
the taxpayer after the expiration of the periods specified in t his sub-
article shall not constitute and shall not be deemed to have ev er
constituted a reason for the said assessment or notice thereof being
declared prescribed, time-barred or otherwise quashed, if suchassessment is delivered by not later than the 31st December, 20 07:
Provided further that where such notification is not made by
the 31st December, 2007 because the taxpayer could not be foundor for other reasons attributable to him, such assessment shall  be
deemed to have been duly notified if, not later than 31st Decem ber
2008, the Commissioner publishes a notice in the Gazette and inone or more daily newspapers stating that such assessment has b een
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 bythe Income Tax Acts for any year of assessment preceding the ye ar
of assessment 1999 or a full and true disclosure of all materia l facts
necessary for his assessment for any such year and there has be en
an avoidance of tax, the Commissioner, where he is of the opini on
that the avoidance of tax is due to fraud or evasion, may at an y time
assess such person at such amount or additional amount asaccording to his judgement ought to have been charged and takeaction 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 t o
appeal under the provisions of articles 35 and 37.
Assessment, and 
determinations relating to the year of assessment 1999 and subsequent years.Substituted by:IX. 1999.7.
Amended by:
II. 2003.46;I. 2010.47;L.N. 336 of 2010;XII. 2014.61;VII.2018.59.31. (1) Where a person has delivered a return of income under
article 10 that includes a self-assessment for the year of asse ssment
1999 or any subsequent year of assessment, the Commissioner sha ll
determine the chargeable income, the tax chargeable thereon andthe tax payable by or repayable to that person for that year ofassessment 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 thatreturn.
(2) Where a person has made an election under article 12 for a
year of assessment the Commissioner shall, on the basis of theinformation in his possession, determine the chargeable income,
 32        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 (A F) on
such form as the Commissioner may determine, within five yearsfrom the date on which the person is notified of suchdetermination:
Provided that, notwithstanding any other provision of this Act,
if the adjustment form is filed later than three months from th e date of
the notification of the determination, interest shall become pa yable by
the Commissioner on a repayment of tax that may result to be du e in
terms of the adjustment only if the repayment is paid later tha n 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 s ubsequent year and has not made
an election under article 12 or, having made such an election h as,
after being given notice by the Commissioner to make a return a s
provided in article 13, failed to file such a return, and theCommissioner is of the opinion that such person is liable to pa y tax,
he may determine the amount of the tax payable by that person f or
that year of assessment on the basis of an estimate made in suc h
manner and by such method as the Commissioner deems fit withoutprejudice to any liability otherwise incurred by that person byreason 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 beendelivered, the Commissioner may make an assessment under theprovisions of sub-article (5) on the person concerned, without the
need to have previously notified the said person that an enquir y 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 b y or
repayable to a person and may make such adjustments to adetermination made under the other provisions of this article a s
may be agreed upon in writing with that person or as may berequired 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 y ear
of assessment has been determined at a lesser amount than thatwhich ought to have been charged, the Commissioner may afterconsidering such further returns, books or evidence, if any, as  may
be produced before or obtained by him, to the best of his judge ment
make an assessment of the chargeable income of that person, thetax chargeable thereon and the tax payable by or repayable to t hat
person for that year of assessment, and where the Commissionerafter having made an assessment is of the opinion that any tax so
assessed has been assessed at a lesser amount than that which o ught
to have been charged he may, in the same manner, make anadditional assessment or assessments:
                    INCOME TAX MANAGEMENT           [CAP. 372.       33
Provided that if there is evidence that, after being requested
by the Commissioner by means of a notice in writing, such perso n
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 theCommissioner referred to in article 33(5) has been issued, suchperson 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 r eturn
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 th at 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 allmaterial facts relevant to the determination of hisincome and allowable deductions; or
(b) for the purpose of avoiding tax or through gross or
wilful neglect has furnished the Commissioner with areturn which is incorrect or misleading in any materialrespect,
an assessment or an additional assessment under sub-article (5)
may be made at any time after the time laid down in accordancewith this Act for the submission of the return of income for th at
year.
(8) A decision on the existence of any circumstance that
warrants the application of the provisions of sub-article (7) s hall 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 thepurposes of the Income Tax Acts.
Assessment and 
payment of tax in foreign currency.
Added by:
IX. 1999.7.31A. The tax chargeable on the income of a company shall be
declared, determined, assessed and paid in the currency (or whe re
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 t ax
shall be made in the same currency (or, where applicable, incurrencies pro rata ) in which such tax was paid.
Cancellation of 
assessments.
Amended by:
XXIII. 1995.2;I. 1999.2;II. 2002.80.32. (1) The Commissioner may for the purposes of the Income
Tax Acts cancel any assessment raised by him, and such
cancellation shall be without prejudice to the raising of anyassessment required to be raised under this Act in replacement of
the assessment so cancelled which shall be deemed not to havebeen raised.
 34        CAP. 372. ]                  INCOME TAX MANAGEMENT
(2) Nothing in this article contained shall empower the
Commissioner to cancel or raise any assessment for any year whe re
such cancellation or raising of any assessment would involve th e
opening of any matter which has been determined on appeal for t hat
year.
(3) Notwithstanding any other provisions of the Income Tax
Acts where more than eight years have elapsed since the expirat ion
of the year of assessment to which an assessment raised by theCommissioner before 1st January, 1992 refers and such assessmen t
is still not final and conclusive in terms of article 38, and i t appears
to the Commissioner that such assessment may be invalid or voidbecause of any mistake, defect or omission by the Commissioner in
making such assessment or in the notice thereof, the Commission er
may within ten years from 1st January 1992 or within two yearsfrom the date the taxpayer applies to the Commissioner in writi ng
indicating as a further ground of objection such mistake, defec t 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 u nder
the Income Tax Acts shall apply to such an assessment and to th e
tax charged thereon:
Provided that:
(i) the provisions of this sub-article shall similarly
apply to those assessments which have beenraised by the Commissioner on 1st January 1992or any subsequent date other than assessmentsraised 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) ofthis proviso refers has not been raised by theCommissioner within the period referred to inthis sub-article, the Commissioner may at anytime raise a new assessment on the taxpayer onall or any part of the chargeable income of thetaxpayer as declared by him for the year ofassessment in question upon which no validassessment has been raised; and except for theprovisions of article 30(4), the provisions of theIncome 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.
Power of the 
Commissioner to revise assessment in case of objection.
Amended by:
XXIII. 1995.3;XX. 1996.21.33. (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, stati ng the
amount of his chargeable income and the amount of tax payable b y
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 hi m. Such application shall sta te
                    INCOME TAX MANAGEMENT           [CAP. 372.       35
precisely the grounds of his objection to the assessment and sh all
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 t he
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 thenotice is given to the Commissioner;
Cap. 123. (b) the tax not in dispute for the said year of assessment
has been paid in full before the time limit set out inarticle 42(1) where the main income of the person forthe year immediately preceding the said year ofassessment is derived from sources other than thosefalling 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 a rticle
38 he shall comply with the preceding proviso hereto by the 28t h
June, 1996, otherwise the notice given will be rejected and theassessment objected to will become final and conclusive on suchdate.
(3) On receipt of the notice of objection referred to in sub-
article (2), the Commissioner may require the person giving thenotice of objection to furnish such particulars or information as the
Commissioner may deem necessary with respect to the income ofthe person assessed and to produce all books or other documents  in
his custody or under his control relating to such income, and m ay
summon any person who, he thinks, is able to give evidencerespecting the assessment to attend before him and produce allbooks or other documents in his custody or under his control an d
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 char ged
and the parents, spouse or children of such person shall not beexamined 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 informationconcerning 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 tothe amount at which he is liable to be assessed, the assessment  shall
be amended accordingly, and notice of the tax payable shall be
 36        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 Commissio ner
for a revision of the assessment made upon him, failing to agre e
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
Administrative 
Review Tribunal.Substituted by:L.N. 336 of 2010.
Amended by:
L.N. 390 of 2010;VII.2018.60.Cap. 490.34. (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 app eals
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.
Cap. 490. (3) The provisions of the Administrative Justice Act, in so far
as they apply to the Administrative Review Tribunal, shall appl y to
any proceedings before the said Tribunal and the words "publicadministration" in the said enactment shall be construed as areference 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 appellantand the parent, spouse or children of such appellantshall not be called to give evidence or to be examinedexcept 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 notbe called to give evidence or to be examined inconnection with any official matter concerning theassessment under appeal except on the request of theCommissioner;
(iii) except at the request of the appellant, no person shall
be examined in relation to any information concerningthe appellant in respect of which the said person isunder 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 go od
                    INCOME TAX MANAGEMENT           [CAP. 372.       37
faith in the course of the operations of the Tribunal.
Cap. 490. (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 assigne d
to the Administrative Review Tribunal in terms of the aforesaidarticle 25 with effect from 1st June, 2010:
Provided that any proceedings pending before the Board of
Special Commissioners and which have already commenced on the1st June, 2010, shall remain pending before the said Board ofSpecial Commissioners for decision, and the provisions of this sub-
article shall not apply to those proceedings.
Appeal.
Amended by:
IV . 2007.27;L.N. 336 of 2010;XII. 2014.62.35. (1) Any person who, being aggrieved by an assessment
made upon him, has failed to agree with the Commissioner in themanner provided in article 33(4) may enter within thirty days a fter
the date of service upon him of notice of the refusal of theCommissioner to amend the assessment as desired, an appealagainst 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 f or 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 othe r
reasonable cause, any person is prevented from attending at thehearing of his appeal on the day and at the time fixed for thatpurpose, the Tribunal may postpone the hearing of such appeal f or
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 makesuch 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 theconsent 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 thedecision.
Certain provisions 
to be followed in the hearing of appeals.
Amended by:
IV . 2007.28;I. 2010.48;L.N. 336 of 2010.36. 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 theassessment complained of unless prima facie  proof is
brought before it that, by the date on which the appealwas entered, appellant had filed under articles 10 and
 38        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 theCommissioner in accordance with the provisions ofarticle 30(1)( b) or (2) or (3), or of article 31(5), no
evidence shall be considered by the Tribunal assufficient to warrant any change in the assessmentconcerning that income if the person appealing againstthe Commissioner’s decision has failed to providewithout any reasonable excuse the records, documents,accounts and electronic data in accordance with theproviso to article 31(5);
(c) the Commissioner may at any time during the hearing
of an appeal require a declaration by the Tribunal as towhether the appeal should be rejected and theassessment complained of confirmed in accordancewith the provisions of paragraph ( a) or ( b).
Appeals to the 
Court of Appeal.
Amended by:
VI. 2001.25;IV . 2007.29;L.N. 425 of 2007;L.N. 336 of 2010;XII. 2014.63.37. (1) Any person who, having appealed to the Tribunal feels
aggrieved by its decision may, by application filed within twen ty
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 waslodged before the Tribunal is less than one million andone 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 waslodged before the Tribunal is of one million and onehundred and sixty-five thousand euro (1,165,000) ormore, to the Court of Appeal.
(2) The Commissioner may, if he is dissatisfied with the
decision of the Tribunal, appeal a gainst the decision on a ques tion
of law only to the court that is competent to take cognizance o f the
appeal in accordance with sub-article (1)(i) and (ii) by anapplication filed within twenty days from the date of the Tribu nal’s
decision.
(3) Unless rules made hereunder provide a longer period, seven
clear days’ notice shall be given to the parties of the date fi xed 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 t he
arguments.
                    INCOME TAX MANAGEMENT           [CAP. 372.       39
(7) The cost of the appeal shall be in the discretion of the Cou rt
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 regist ry of
the courts in relation to the filing of judicial acts in connec tion with
an appeal to the Court of Appeal and to the Court of Appeal(Inferior Jurisdiction), as the case may be, under this article :
Cap. 12.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.
Assessments or 
amended assessments to be final.
Amended by:
I. 2010.49.Cap. 123.38. Where no valid objection or appeal has been lodged within
the time limited by this Part against an assessment or order asregards the amount of the chargeable income assessed thereby orthe tax rebate granted in terms of article 57 of the 
Income Tax Act,
or where the amount of the chargeable income or tax rebate hasbeen agreed to under article 33(4), or where the appeal has bee n
withdrawn or discontinued, or where the amount of such chargeab le
income or tax rebate has been determined on objection or appeal ,
the assessment or order as made or agreed to or determined onappeal, as the case may be, shall be final and conclusive for a ll
purposes of the Income Tax Acts as regards the amount of suchchargeable income or tax rebate:
Provided that nothing in this Part shall prevent the
Commissioner from making any refund under the provisions ofarticle 48 or any assessment or additional assessment for any y ear
of assessment which does not involve reopening of any matterwhich has been determined on appeal for the year.
Errors, etc., in 
assessments and notices.39. (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 wa nt
of form, or be affected by the reason of a mistake, defect oromission therein, if the same is in substance and effect inconformity with or according to the intent and meaning of theIncome Tax Acts or any Act amending the same, and if the personassessed or intended to be assessed or affected thereby isdesignated therein according to the common intent andunderstanding.
(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 s uch
notice shall contain, in substance and effect, the particulars on
 40        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 ofpersons 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 finaldecision or judgment declared invalid or void, the Commissionermay, within one year of the final decision or judgment as the c ase
may be, where a new assessment cannot be issued under any otherprovision of the Income Tax Acts, raise a new assessment on thetaxpayer on all or any part of the chargeable income of the tax payer
as declared by the taxpayer for the year of assessment in quest ion
upon which no valid assessment has been raised; and the provisi ons
of the Income Tax Acts as to notice of assessment, appeal and o ther
proceedings under the Income Tax Acts shall apply to suchassessment and to any tax chargeable thereunder.
PART VII
Collection
Executive title.
Amended by: 
XXIII. 1995.4;V . 1998.6;II. 2004.51;I. 2010.50;IV . 2011.61;VII.2018.61.Cap. 12.Cap. 123.40. (1) The following shall constitute an executive title within
the meaning and for the purposes of Title VII of Part 1 of BookSecond of the
 Code of Or ganization 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 theCommissioner 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 o f
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 enforcemen t
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 p ublic
registry or land registry, as the case may be, a note of privil ege for the
amount demanded in the judicial act which note of privilege sha ll be
                    INCOME TAX MANAGEMENT           [CAP. 372.       41
registered by any advocate or notary.
Procedure in cases 
where objection or appeal is pending.
Amended by:
VII.2019.47.41. (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 pay able
in accordance with the provisions of article 42(2).
Time within which 
payment is to be made. 
Amended by:
XX. 1996.21;IX. 1999.8;XII. 2014.64;XXXVII. 2014.5;XV . 2016.28;VII.2018.62.42. (1) Tax due for any year of assessment preceding the year
of assessment 1999 shall be payable within the period ending onthe last day of the first calendar month immediately following that
during which service has been made of a notice of assessmentunder article 33.
(1A) Tax chargeable for the year of assessment 1999 or any
subsequent year of assessment shall be due and payable by not l ater
than such date, being a date not earlier than the tax return da te as
determined in accordance with article 10, during that year, in the
Income Tax Acts referred to as the "tax settlement date", as ma y 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 inrespect of his liability for the year of assessment in such amo unt
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 activit ies
relating or ancillary to banking, sound or television broadcast ing,
film renting or insurance (excluding commissions derived from t he
sale of insurance by bodies of persons residing in Malta) in re spect
of the liability of such body of  persons for any year of assess ment
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’soutstanding liability to tax for any year of assessmentin such amount and in such manner and on such date asmay 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 towhom article 12 applies but who does not make anelection under that article for that year, shall, by notlater than the tax settlement date, pay the amount, ifany, that is required to be determined in that self-assessment as the amount of tax payable by that personfor that year of assessment;
(d) notwithstanding any other provision contained in this
Act or in any other law no person may set off against
 42        CAP. 372. ]                  INCOME TAX MANAGEMENT
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 creditunder the Income Tax Acts for any other year ofassessment;
Amended by:
VII.2018.62.*
Cap. 123.(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 therelevant year in respect of the income arising duringthe period January to December of the relevant year.
This payment shall be accompanied by a statement of
accounts indicating the taxable net profits for therelevant 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 accountingpractices but duly adjusted for income tax purposes.
Amended by:
VII.2018.62.†
Cap. 123.(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 duringthe period January to December of the relevant year.
This payment shall be accompanied by the relevant
form which the Commissioner may prescribeindicating the gross rental income received for therelevant year. For the purposes of this paragraph"relevant year" means the calendar year during whichthe gross rental income is received:
Cap. 123.Provided that in the case of an individual who
exercises the option referred to in article 31D(6A) ofthe  
Income Tax Act, payment of tax shall be made by
not later than the 30th June 2015.
(5) If any person fails to pay any tax as prescribed under or
pursuant to this article he shall be chargeable with the tax wh ich
should have been so paid and, in addition, with further tax orinterest as provided for in article 44, and such tax, additiona l tax
and interest shall be recovered from such person in the samemanner 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 havebeen paid and any additional tax and interest to which he is li able
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
*Applicable as from the year of assessment 2019.
†Applicable as from the year of assessment 2019.
                    INCOME TAX MANAGEMENT           [CAP. 372.       43
the amount due to be paid to the Commissioner by the said perso n.
(7) The powers conferred upon the Commissioner by sub-
articles (5) and (6) shall be in addition to any right conferre d 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 madethereunder 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 hundredand sixty euro (1,160) and to a further fine ( multa ) of
not less than eleven euro (11) but not exceeding onehundred and sixteen euro (116) for every day duringwhich the offence continues.
(b) The Commissioner may compound any offence under
this article and may before judgment stay or compoundany proceedings thereunder.
(9) Notwithstanding anything contained in the preceding
provisions of this article, any tax payable by an internationaltrading company and by a company with respect to profits alloca ted
to the foreign income account shall not become payable before t he
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 thecompany.
Time limit within 
which payment is to be made by trustees.
Added by:
XIII. 2004.89.Cap. 123.42A. Notwithstanding anything contained in article 42, tax
payable on the income attributable to a trust as defined in art icle
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 I ncome
Tax Acts.
Advance Company 
Income Tax.
Added by:
II. 2007.24.
Amended by:
XIII. 2015.122.
Cap. 123.42B. (1) In addition to the other provisions of this Part and in
particular articles 42 and 43 hereof a company shall also pay t he
tax chargeable on its income in the manner set out in this arti cle.
(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 divide nd is
paid excluding any tax credits relative to a claim for relief o f
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:
Cap. 123.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 otherwis e
payable other than the tax credit referred to in article 74( d) of the
 44        CAP. 372. ]                  INCOME TAX MANAGEMENT
Income Tax Act.
(3) The amount of Advance Company Income Tax less any
claim for relief of double taxation and any tax that the compan y has
paid, as at the date of payment contemplated herein, on the pro fits
out of which the said dividend is paid shall be paid by the com pany
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 sh all,
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-offagainst any other future payments of tax that the company isrequired to make on the profits out of which the dividend is pa id.
(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 an d to
a company in respect of which paragraph (i) of the proviso toarticle 48(4A)( b) has been applied.
Gains or profits 
from transfer of property.
Amended by:
II. 2004.52;XIII. 2004.90;L.N. 425 of 2007;I. 2010.51;XV . 2016.29;
VIII.2020.57.
Cap. 123.
Cap. 123.43. (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 theCommissioner a payment of tax, if any, in such amountand 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 arechargeable under the provisions of that article or underany other provision of the Income Tax Acts, remit tothe Commissioner within fifteen days of the relativetransfer a provisional tax payment equivalent to 7% or,where applicable, at the rate provided for in article5(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 yearlyground rent or sub-ground rent payable according tothe deed:
Cap. 123.Provided further that in the case of a transfer ofsecurities, as defined in article 5 of the 
Income Tax
Act, involving a transfer of a controlling interest in
accordance with prescribed rules, the provisional taxpayment shall be equivalent to seven percent of thehigher of the market value and the consideration, andin the case of a transfer to which article 5(9A) of the
                    INCOME TAX MANAGEMENT           [CAP. 372.       45
Income Tax Act applies, such payment shall be made
within fifteen days from the date the chargeablecompany ceases to be a member of the group:
Cap. 123.Provided also that in the case of a transfer of value insecurities, as provided for in sub-article (13)( b)(ii) of
article 5 of the 
Income Tax Act, the provisional tax
payment shall be equivalent to seven percent of thegains or profits referred to in the said sub-article:
Cap. 123.
Cap. 123.Provided, moreover, that notwithstanding the foregoing
provisions of this paragraph, in the case of a transfer ofsecurities in a property company or of an interest in aproperty partnership, the provisional tax payment shall beequivalent to such amount as may be prescribed underthis Act or under the  
Income Tax Act but not exceeding
thirty-five (35%) percent of the higher of the marketvalue and the consideration for the transfer, and for thepurpose 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:
Cap. 123.(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 theprescribed form, stating which provision is applicable,and any other relevant documents which theCommissioner may deem necessary:
Cap. 123.Provided that provisional tax shall in any case be paidif article 33 of the 
Income Tax Act is applicable as a
result of claiming the exemption provided for underarticle 12(1)( u) of the said Act;
(b) transfer of property on deeds of partition;
(c) transfer of shares in public companies.
Cap. 123.(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 theconsideration or of the value of the donation as the case may b e:
Cap. 123.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, the t wenty
percent shall be calculated on the higher of the market value a nd
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
 46        CAP. 372. ]                  INCOME TAX MANAGEMENT
or a payable under the provisions of article 42 and he
shall not be required to declare any such income, inany return made pursuant to the Income Tax Acts.
Cap. 123.(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 ofcollection against the tax charged in respect of the said
year of assessment and if there is an excess after theaforesaid set-off has been made, such excess shall berefunded in accordance with the provisions of article48. Such provisional tax shall be separate and distinctfrom that paid or payable under the provisions ofarticle 42 except for persons who have gains or profitsfrom 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 aforesa id
unless the person who has paid the tax has declared the relativ e
gains or profits from the transfer in a return of income furnis hed in
accordance with article 10 for the year of assessment following  that
during which the gains or profits from the said transfer werederived.
(5) If any person fails to pay any provisional tax, as the case
may be, as provided under this article he shall be chargeable w ith
the tax which should have been so paid and, in addition, withfurther tax as provided for in article 44(1)( a), and such tax and
additional tax shall be recovered from such person in the samemanner 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 havebeen paid and any additional tax to which he is liable for havi ng
failed to pay the tax shall, unless the contrary is proved, besufficient 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 conferre d 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 f ine
(multa ) of not less than one hundred and sixteen euro (116) and not
exceeding one thousand and one hundred and sixty euro (1,160) o r
to imprisonment for any term not exceeding six months or to bot h
such fine and imprisonment, and to a further fine ( multa ) of not less
than four euro (4) but not exceeding twenty-three euro (23) forevery day during which the offence continues after conviction:
Provided that the Commissioner may compound any
offence under this article and may before judgment stay orcompound any proceedings thereunder.
(9) ( a) The tax or provisional tax, as the case may be, payable
                    INCOME TAX MANAGEMENT           [CAP. 372.       47
under this article shall be paid in such manner as may
be prescribed.
Cap. 364.(b) Notwithstanding anything that may be provided for in
the rules where immovable property or any rightsannexed thereto are transferred by means of a publicdeed the notary publishing such deed shall have thesame duties and liability in connection with thecollection and payment of the tax or provisional tax, asthe case may be, payable on such deed in accordancewith this article as are by the 
Duty on Documents and
Transfers Act imposed on notaries publishing such
deeds, in connection with the duty chargeable andcollected on transfers in accordance with that Act. Anyfailure by a notary in connection with the collectionand payment of tax or provisional tax, as the case maybe, 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.
Cap. 123.
Cap. 364.(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 Courtsshall have the same duties with regard to thewithholding and payment of the tax or provisional tax,as the case may be, under this article as are underarticle 66 of the 
Duty on Documents and Transfers Act
imposed on him in relation to the duty leviable ontransfers causa mortis  under the said Act.
Additional tax and 
interest for non-payment of tax, and enforcement of payment.
Amended by: 
XXIII. 1995.5;IX. 1999.9;II. 2003.47;II. 2004.53;II. 2009.30;I. 2010.52;XII. 2014.65;XV . 2016.30.VII.2018.63;VII.2019.48.Cap. 123.44. (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 whichsuch tax remains unpaid shall be added thereto, and theprovisions of the Income Tax Acts relating to thecollection and recovery of tax shall apply to thecollection and recovery of such additional tax;
(b) the Commissioner shall serve a demand note upon the
person assessed, and if payment is not made withinthirty days from the date of the service of such demand
note, the Commissioner may proceed to enforcepayment in virtue of the executive title referred to inarticle 40 after two days from the service on the debtorof an intimation, for payment made by means of ajudicial act, or as hereafter provided;
Cap. 123.(c) additional tax charged under this sub-article shall not
be deemed to be part of any tax paid or payable for thepurposes of articles 59, 73, 76 or 89 of the 
Income Tax
Act, or articles 23, 43, 51 or 52, or any rules made
thereunder.
 48        CAP. 372. ]                  INCOME TAX MANAGEMENT
(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 therespective periods owing to his absence from Malta or serioussickness or for such other cause as the Minister responsible fo r
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 datefor each calendar month or part thereof during whichsuch tax remains unpaid and the provisions of theIncome Tax Acts relating to the collection andrecovery of tax shall apply to the collection andrecovery of such interest:
Provided that for any period or part thereof commencing
on or after 1st January 2009, interest shall be calculatedat the rate of point seven five percent (0.75%) per monthor part thereof and the total interest shall not exceed theamount of the said tax:
Provided further that, for any period or part thereof
commencing on or after 1st January 2014, interest shallbe calculated at the rate mentioned in the precedingproviso or at such lower rate as the Minister may, fromtime to time, prescribe by rules and the total interest shallnot 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 anassessment made under article 31 shall unless and untilit is substituted by another amount by means of asubsequent determination or assessment be deemed tobe the tax payable for that year of assessment for thepurpose of paragraph ( a) regardless of the date when
the said determination is made or when the assessmentbecomes final and conclusive;
(c) the Commissioner shall serve a demand note upon the
person by whom any tax is due and if payment is notmade within thirty days from the date of the service of
such demand note, the Commissioner may proceed toenforce payment in virtue of the executive titlereferred to in article 40 after two days from the serviceon the debtor of an intimation for payment made bymeans 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 hasdetermined and directed by notice in writing given to apayor in accordance with rules made pursuant to
                    INCOME TAX MANAGEMENT           [CAP. 372.       49
article 23 that deductions be made from emoluments
payable to that person to cover the said tax and if thatnotice has not been revoked by a notice in writinggiven by the Commissioner to that person;
Cap. 123.(b) no interest shall run on any additional tax charged
pursuant to the provisions of article 56(12) of the
Income Tax Act;
Cap. 123.(c) no interest shall run on any tax payable in
circumstances where a person has taken action under aMutual Agreement Procedure in terms of anarrangement 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 connectionwith the adjustment of profits of associatedenterprises, for the period between the date when thesaid action under the Mutual Agreement Procedure isinitiated and the date when the issue is concludedunder the said procedure;
Cap. 123.(d) No interest shall run on any tax payable by any person
to the Commissioner when the non-payment of that taxrenders that person liable to additional tax as providedfor in sub-article (1) of this article or in article 73(4) ofthe 
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 accor dance
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 actobtained thereunder or the paying out of the proceeds of anywarrant 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 otherprovisions of the Income Tax Acts.
Collection of tax 
after determination of objection or appeal.
Amended by:
IX. 1999.10.45. Where payment of tax is kept in abeyance in accordance
with the provisions of article 41 pending the result of a notic e of
objection or of an appeal, the tax outstanding under the assess ment
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 cale ndar
month immediately following that during which service of thenotification of tax payable has been made, and if such tax is n ot
paid within such period the provisions of the last preceding ar ticle
shall apply:
Provided that nothing in this article or in article 41 shall be
construed as suspending the running of interest on the taxoutstanding as aforesaid and interest on the said tax shall be
 50        CAP. 372. ]                  INCOME TAX MANAGEMENT
computed and due in accordance with the provisions of article
44(2A) as from the relevant tax settlement date up to the date of
payment.
Payment of tax by 
persons about to leave Malta.
Amended by:
IX. 1999.11.46. (1) If in any particular case, the Commissioner has reason
to believe that a person who has been assessed to tax may leaveMalta before such tax becomes payable under the provisions of t he
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 payme nt,
unless security for payment thereof be given to the satisfactio n of
the Commissioner, be recovered forthwith in the manner providedby article 44.
(2) If in any particular case, the Commissioner has reason to
believe that tax upon any char geable 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 suchincome 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 makingsuch return or the Commissioner is dissatisfied withsuch return, in such amount as the Commissioner maythink reasonable;
(c) by notice in writing to the person assessed require that
security for the payment of the tax assessed beforthwith 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 asse ssed,
and any tax so assessed (in accordance with the provisions of s ub-
article (2)) shall be payable on demand made in writing under t he
hand of the Commissioner and shall in default of payment, unles s
security for the payment thereof be given to the satisfaction o f the
Commissioner, be recoverable forthwith in the manner provided b y
article 47.
(4) Any person who has paid the tax in accordance with a
demand made by the Commissioner or who has given security forsuch payment under sub-article (2) shall have the rights ofobjection and appeal conferred by articles 33, 35 and 37 and th e
amount paid by him shall be adjusted in accordance with the res ult
of any such objection or appeal.
(5) The provisions of sub-article (2) shall not affect the power s
conferred upon the Commissioner by articles 30 and 31.
Suit for tax by 
Commissioner.
Amended by:
IX. 1999.12;II. 2004.54;IV . 2007.30.47. (1) Tax may be sued for and recovered, as the case may
require, in the Civil Court, First Hall, or in the Court of Mag istrates
(Malta) in its civil jurisdiction or in the Court of Magistrate s
(Gozo), also in its civil jurisdiction by the Commissioner in h is
official name with full costs of suit from the person chargedtherewith, from the person by whom it is payable or from the
                    INCOME TAX MANAGEMENT           [CAP. 372.       51
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, i nterest
or any penalty may be taken during any time from the date onwhich it becomes due and payable up to eight years from that da te
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) sha ll
be interrupted by a demand note served through registered post by
the Commissioner or by any judicial act filed by the Commission er
before the expiration of such period demanding the payment of t he
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 timeexpires on or before the 31st December 2003, then, notwithstand ing
the provisions of the said sub-articles, action for the payment  of the
said tax, additional tax, interest or penalty may be taken unti l the
31st December 2005.
Assistance in the 
collection of taxes.
Added by:
IV . 2011.62.Cap. 123.47A.  (1) The Commissioner shall lend assistance to foreign tax
authorities in the collection of revenue claims in accordance w ith
the provisions of applicable arrangements referred to in articl e 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 revenueclaim by a foreign tax authority to which he is liable for havi ng
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 relati on
to the collection of taxes shall determine the meaning of "taxe s"
and "revenue claims".
PART VIII
Refunds
Repayment of tax. 
Amended by: 
XX. 1996.21;V . 1998.7;IX. 1999.13;II. 2003.48;II. 2004.55;II. 2007.25;IV . 2007.31;IX. 2007.7;II. 2009.31;I. 2010.53;IV . 2011.63;XII. 2014.66;XIII. 2015.123;VII.2019.49;
VIII.2020.58.
*48. (1) If it be proved to the satisfaction of the Commissioner
that any person for any year of assessment has paid tax, bydeduction or otherwise, in excess of the amount with which he i s
properly chargeable, such person shall be entitled to have theamount so paid in excess refunded by the Commissioner. Everyclaim for repayment under this article should be made within fo ur
years from the date on which the assessment in respect of the y ear
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 yearsfrom the end of the year of assessment to which the claim relat es:
Provided also that where the claim relates to tax paid for
 52        CAP. 372. ]                  INCOME TAX MANAGEMENT
the year of assessment 1999 or any subsequent year of assessmen t
it shall be made within five years from the relevant tax return  date
or, where an assessment in respect thereof has been made from t he
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 invirtue of any exemption granted by or under any law isnot chargeable to tax thereon; and
Cap. 123.(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 collectiveinvestment scheme.
For the purposes of this proviso -"company" includes a collective investment scheme; and"dividend" includes any distribution made by a collective
investment scheme.
S.L. 372.14.(1A) Notwithstanding the provisions of sub-article (1), in no
case shall any refund be made to any person in respect of the y ear
of assessment 1999 or any subsequent year of assessment unlessand until such person has filed all tax returns, which are requ ired to
be furnished under this Act, in respect of the years of assessm ent
1999 up to and including the year of assessment preceding the y ear
in which the refund would have been payable but for theapplication of this sub-article and, in the case of a person wh o is a
payer as defined in the Final Settlement System (FSS) Rules, he  has,
moreover, submitted all the Payer’s Annual Reconciliation State ments
together with the Payee Statements of Earnings in accordance wi th 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..
Cap. 406.(1B) Notwithstanding the provisions of sub-article (1), in no
case shall any refund be made under this Act to any personregistered for the purpose of the Value Added Tax Act, unless a nd
until such person has filed all tax returns or declarations req uired to
be furnished for the purpose of the Value Added Tax Act in resp ect
of tax periods up to and including the last complete tax period  in
the year preceding that in which the refund would have beenpayable 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 theamount contained in his return, provided he has received notice  of
*Applicable as from year of assessment 2021.
                    INCOME TAX MANAGEMENT           [CAP. 372.       53
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 t o
deliver a true and correct return did not proceed from any frau d or
wilful act or omission on the part of that person.
Cap. 123.(2A) Subject to the provisions of sub- sub-article (2B) any tax
determined as repayable to a person for a year of assessment un der
article 31(1) or (2) shall become due or shall be deemed to hav e
become due, as the case may be, in the case of a person to whomarticle 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 suchother 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 following a return furnished after therelevant tax return date it shall become due or shall bedeemed to have become due, as the case may be, on thelater 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 interms 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 payablebut for the provisions of the said sub-articles, shallbecome due or shall be deemed to have become due, asthe case may be, on the last day of the sixth (6th)month following that in which the tax returns referredto 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 (2 B)
any tax, additional tax or interest that may be due by that per son
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 t he
date it becomes due as aforesaid at the rate of one per cent fo r 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 rat e of point
seven five percent (0.75%) per month or part thereof and the to tal
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 calc ulated
at the rate established by the provisions of article 44(2A) and  the total
interest shall not exceed the amount of the said repayment.
*Applicable as from year of assessment 2021.
 54        CAP. 372. ]                  INCOME TAX MANAGEMENT
(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 deeme d 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 d ecision
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 ofarticle 35 and 37 has lapsed or w hich 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 anyprofits distributed by an international trading company,as the case may be, may claim a refund of two-thirds ofthe Malta tax paid by the company in respect of thoseprofits 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, directlyor 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 inMalta, provided that such person or persons arenot owned and controlled by, directly orindirectly, or act on behalf of a person or personsordinarily resident and domiciled in Malta:
Provided that the conditions set out in paragraphs (i)
and (ii) shall not apply in respect of dividends paid byany company registered in Malta to any recipientshareholder who is registered for the purpose of thisarticle 48(4) or article 48(4A).
(b) Subject to the provisions of paragraph ( a), where
profits distributed as aforesaid out of the foreignincome account derive from a participating holding orfrom the disposal of such holding, a claim may bemade for a refund of all of the Malta tax paid inrespect of those profits:
Provided that with respect to a claim for refund
relative to dividends derived from a participatingholding acquired on or after 1 January 2007, the refundcontemplated by this paragraph shall only be due whenthe conditions set out in either paragraph (i) orparagraph (ii) below are satisfied:
(i) where the body of persons in which the
                    INCOME TAX MANAGEMENT           [CAP. 372.       55
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 theEuropean 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 passiveinterest or royalties;
(ii) where none of the conditions set out in
paragraph (i) are satisfied then both of thefollowing two conditions must be satisfied:
(1) the equity holding by the company
registered in Malta in the body of personsnot resident in Malta is not a portfolioinvestment and for this purpose theholding of shares by a company resident inMalta in a body of persons not resident inMalta which derives more than fifty percent of its income from portfolioinvestments shall be deemed to be aportfolio investment; and
(2) the body of persons not resident in Malta
or its passive interest or royalties havebeen subject to any foreign tax at a ratewhich is not less than five per cent (5%):
Provided further that the provisions of the immediately
preceding proviso shall, with effect from 1 January2011, also be applicable to a claim for refund inrespect of the Malta tax paid on distributed profitscomprised in dividends received from a participatingholding 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 bythe company to the Commissioner on the profitsdistributed out of the foreign income account or on anyprofits derived and distributed by a company while itwas an international trading company, as the case maybe:
Cap. 123.Provided that as regards claims made relative to thepayment of dividends from profits allocated to theforeign income account and brought to charge to tax inyear of assessment 2008 and subsequent years ofassessment the expression "Malta tax paid" shall, for the
purpose of determining the amount of the refund, meanthe tax actually paid by the company to theCommissioner on the profits so allocated plus theamount, if any, by which such tax has been reduced bya claim of relief of double taxation under the articlesreferred to in articles 74( a), (b) and ( c) of the 
Income
 56        CAP. 372. ]                  INCOME TAX MANAGEMENT
Tax Act:
Provided further that, notwithstanding the previous
proviso, a tax refund payable in terms of this sub-articleshall in no case exceed the amount of tax actually paid bythe company to the Commissioner on the profitsdistributed out of the foreign income account or on anyprofits derived and distributed by a company while it wasan 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 acompany which was an international trading companyas at 31 December 2010, the provisions of this articleshall continue to apply after 31 December 2010 withrespect to the distribution of profits earned by suchcompany while it was an international tradingcompany;
(ii) a person resident in Malta, registered for the purpose
of making a claim in terms of this sub-article in suchmanner as may be prescribed, may also claim a taxrefund contemplated by this sub-article with respect todividends paid from profits allocated to the foreignincome 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 notresident 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 ofaccounting periods which commenced on orafter 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 inMalta from profits allocated to its Maltese taxedaccount or its foreign income account, may claim arefund of six-sevenths of the Advance CompanyIncome Tax pertaining to those profits distributed tohim by way of such dividend, provided that suchperson is for such purpose registered in such manneras may be prescribed:
Provided that where the dividend is paid out of profits:
Cap. 123.(i) consisting of passive interest or royalties or of
dividends received from a participating holdingin a body of persons which does not satisfy theconditions referred to in the proviso to article12(1)( u) of the 
Income Tax Act, the rate of
refund shall be of five-sevenths of the said
                    INCOME TAX MANAGEMENT           [CAP. 372.       57
Advance Company Income Tax;
(ii) allocated to the foreign income account and in
respect of which profits the company hasclaimed relief of double taxation no claim forrefund may be made under this sub-article:
Provided further that, notwithstanding the provisions
of article 42B(2), a tax refund payable in terms of thissub-article shall in no case exceed the amount of taxactually paid by the company to the Commissioner onthe profits distributed out of the Maltese taxed accountor 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 adividend from a company which was a companyregistered in Malta on or after 1 January 2007 but wasnot 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 informedthe Commissioner as contemplated in the saidparagraphs (1) or (2) below, may also claim a taxrefund in terms of this sub-article during theaforementioned period if the conditions ofparagraph ( a) are satisfied:
1. a company which qualifies as an
international trading company and whichinforms the Commissioner that it has optedto cease to be an international tradingcompany which option shall be approvedby an extraordinary resolution of themembers of such company;
Cap. 123.2. a company which has informed the
Commissioner that it has opted to betreated as a company which was registeredin Malta on or after 1 January 2007 butwas not resident in Malta before that date,where such company had, in the threeaccounting periods immediately precedingthat in which it has so informed theCommissioner, in the aggregate more than50% of its profits allocated to the foreignincome account or consisting of income inrespect of which the exemption providedby article 12(1)( u) of the 
Income Tax Act
is applicable and has been applied, whichoption shall be approved by anextraordinary resolution of the members ofsuch company:
Provided that:
 58        CAP. 372. ]                  INCOME TAX MANAGEMENT
(aa) where the company was not in
existence or was not resident orregistered in Malta during the wholeof the above mentioned three yearperiod the condition relating to thenature of its income set out inparagraph (2) above shall bedetermined by reference to theperiod that such company was inexistence, resident or registered inMalta as the case may be;
(bb) The Commissioner may, in his
discretion, determine that paragraph2 above applies to a company if he isof the opinion that it is likely that inthe foreseeable future more than halfof the distributable profits of thecompany will consist of any or all ofthe following categories of income:
- profits that will be allocated to
the foreign income account;
- profits which are not subject to
tax but which would otherwisebe allocated to the foreignincome account;
- dividends received from an
international trading company,including, where applicable,dividends paid after thatcompany has exercised theoption under paragraph 1 ofproviso (i);
S.L. 234.43- income derived from the
ownership and, or chartering ofany tonnage tax ship as definedin the 
Merchant Shipping (Tax-
ation and Other Matters
Relating to Shipping  Organisat-
ions) Regulations ;
                    INCOME TAX MANAGEMENT           [CAP. 372.       59
S.L. 234.43
S.L. 234.42- income derived from the
ownership and, or chartering ofany ship, yacht, boat and anyother vessel (in each case notbeing a tonnage tax ship asdefined in the 
Merchant
Shipping  (Taxation and Other
Matters Relating to Shipping
Organisations) Regulations) ,
provided that the aforesaidincome is derived by a companywhich was originallyincorporated in terms of andsubject to the 
Merchant
Shipping (Shipping  Organis-
ations - Private Companies)
Regulations , and whose objects
were restricted as requiredunder such Regulations;
S.L. 325.06- income of any company
qualifying for benefits in termsof 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 entitledto claim a refund in respect of the Malta tax paidon profits allocated to its Maltese taxed accountin years of assessment prior to year ofassessment 2008.
(ii) such company did not derive any of its profits,
(even if such profits are not comprised in thesaid dividend) directly or indirectly, from atrade, business or other activity (hereinafterreferred to as "the new activity") which is inwhole or in part the same or an expansion,replacement or duplication of a trade, businessor other activity which was carried on in Malta,prior to the 1 January 2007, by any person(hereinafter referred to as the "old activity"); andthe foregoing shall be interpreted in the light ofthe following:
(1) where the human, tangible or intangible
resources of the new activity aresubstantially the same as those which wereutilised by old activity, it shall bepresumed, unless the contrary is proved,that the new activity is the same or anexpansion, replacement or duplication ofan old activity;
(2) where the new activity is carried on
directly or indirectly by any person in any
 60        CAP. 372. ]                  INCOME TAX MANAGEMENT
way directly or indirectly connected or
associated with the persons which carriedon the old activity through shareholding,voting or other ownership or controllingrights it shall be presumed, unless thecontrary is proved, that the new activity isthe same or an expansion, replacement orduplication of an old activity;
(3) a new activity shall not be presumed to be
the same or an expansion, replacement orduplication of an old activity merelybecause the new activity is similar to anold activity because, inter-alia, it providesthe same type of goods or services orbecause the new activity operates in thesame market as the old activity andcompetes with the old activity:
Provided that where the old activity had been
carried by a company to which proviso (i) to thisparagraph ( b) may be applied the new activity
shall not be considered in whole or in part thesame or an expansion, replacement orduplication of the old activity.
Cap. 123.(c) For the purpose of paragraph ( b)(ii) where the
Commissioner is of the opinion that any activitycarried out by any company which consists of any partof any administrative, management or other activitycarried on by any person as part of his businessactivities prior to the 1 January 2007, and any otheractivity forms part of a scheme the sole or mainpurpose of which is the avoidance of the provisions ofparagraph ( b) shall be a trade, business or activity
which was carried on in Malta, prior to the 1 January2007, by any person; and for this purpose the word"scheme" shall have the meaning assigned to it byarticle 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 Maltesetaxed account by companies which were resident inMalta prior to the 1 January 2007 may only be made inrespect of the tax paid on profits derived by the saidcompany in respect of accounting periods whichcommenced 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 i n Malta
prior to the 1st January, 2007, which profits were derived by t hose
companies in accounting periods which commenced prior to the 1s t
January, 201 1, 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 expiratio n of the
                    INCOME TAX MANAGEMENT           [CAP. 372.       61
deadline of the 31st December, 2014.
(5) A claim for refund pursuant to sub-article (4) or sub-articl e
(4A) shall be made not later than four years from the date fromwhich the amount of tax is eligible for refund.
Cap. 123.(6) The Commissioner shall make payment of the refund under
sub-article (4) or sub-article (4A) on being satisfied as to th e
correctness of the claim made and upon receipt of a certificateissued 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 paymentunless any tax due under the investment income provisions inrespect 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) inrespect of Malta tax paid on distributed profits asproperly shown in the relevant dividend certificate, noperson shall be entitled to a further refund under thosesub-articles or to a refund under any other provisionsof the Income Tax Acts in relation to the Malta tax paidon such distributed profits:
Provided that a person entitled to such refund as set
out under sub-article (4) in respect of profitsdistributed by an international trading company shallalso be entitled to a refund of the difference betweenthe Malta tax paid by the international tradingcompany and the tax chargeable on such person onsuch income in accordance with the provisions of this
Act:
Provided further that the provisions of the immediately
preceding proviso shall during the period 1 January2011 to 31 December 2014 also apply in the case ofany profits distributed by a company which was aninternational trading company as at 31 December 2010where such profits were earned by such companywhile it was an international trading company.
Cap. 123.(b) Where a claim for refund has been made under the
provisions of sub-article (4) or sub-article (4A) inrespect of Malta tax paid on distributed profits asproperly 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 59from such dividend, shall, when such dividend isincluded in the chargeable income of any person,including a company receiving the said dividend or aperson holding directly or indirectly shares in such
 62        CAP. 372. ]                  INCOME TAX MANAGEMENT
company which receives a dividend out of such
profits, be set off, for the purposes of collection, onlyagainst 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 ondistributed profits as properly shown in the relevantdividend certificate, no person shall be entitled to afurther refund under the provisions of sub-article (4) orsub-article (4A) in relation to the Malta tax paid on suchdistributed profits.
(8) A refund due by the Commissioner as aforesaid shall
constitute a debt due by the Commissioner to the claimant whichshall be payable not later than the fourteenth day following th e day
on which the refund becomes due and shall be recoverable as suc h.
(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 daysfrom the date of receipt of such refund, and where such repayme nt
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) o r
sub-article (4A) when that person was not entitled to the saidrefund such person shall be liable to pay a penalty equal to th e
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 sorefunded and to additional tax of seven per cent per month or p art
thereof commencing from the month in which the said refund waspaid to him up to the month in which he repaid the tax refunded  and
any payment made by the said person in respect of the taxrepayable by him in terms of this paragraph shall first be appl ied
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 d id
not know and could not reasonably have known that he was notentitled 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
General provisions 
regarding offences.
Amended by:
L.N. 425 of 2007;XII. 2014.67.49. (1) Any person who contravenes or fails to comply with
any of the provisions of the Income Tax Acts or of any rules ma de
thereunder shall be guilty of an offence and, unless anotherpunishment is specifically provided by the Income Tax Acts, heshall be liable on conviction to a fine ( multa ) of not less than
twenty-three euro (23) and not exceeding one hundred and sixtee n
euro (116).
                    INCOME TAX MANAGEMENT           [CAP. 372.       63
Cap. 446.(2) Where a person is, on or after 1st July 1977, found guilty o f
an offence under any of the provisions of the Income Tax Acts a nd
is not sentenced to imprisonment for that offence the court sha ll
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 natu re
or not) he shall be sentenced, in addition to any other punishm ent,
to not less than three days imprisonment or to a fine ( multa ) of one
thousand and five hundred euro (€1500); and a person so foundguilty on a second or subsequent occasion, within the periodaforesaid, 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 punishm ent
except imprisonment for a longer term.
Penalty for failure 
to comply with notice.
Amended by:
L.N. 425 of 2007;I. 2008.7.50. Every person who without sufficient cause -
(a) fails to comply with the requirements of a notice,
intimation, request or demand note given or made tohim 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 answerany 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 defau lt
continues after conviction.
Penalty for making 
incorrect returns, etc.
Amended by:
L.N. 425 of 2007.51. (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 theliability of any other person or of a partnership,
shall be guilty of an offence and shall, on conviction, be liab le 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 dou ble
the amount of tax which has been undercharged in consequence ofsuch incorrect return, or information, or would have been soundercharged if the return or information had been accepted ascorrect.
(2) No person shall be liable to any penalty under this article
unless the complaint concerning such of fence was made in the ye ar
of assessment in respect of or during which the offence wascommitted 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 anyproceedings thereunder.
 64        CAP. 372. ]                  INCOME TAX MANAGEMENT
Penal provisions 
relating to fraud, etc.
Amended by:
L.N. 425 of 2007;IV . 2011.64.52. (1) Any person who wilfully with intent to evade or to
assist any other person to evade tax under the Income Tax Acts - 
(a) omits from a return or any other document or
statement made, prepared or submitted for thepurposes of or under the Income Tax Acts, any incomewhich should be included therein; or
(b) makes any false statement or entry in any return or
other document or statement prepared or submitted forthe 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 ormade 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 otherrecords or falsifies or authorises the falsification ofany 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 orcontrivance; 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 reasonablyexpected 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 thecourse of or in connection with altering, destroying,erasing or concealing any information, records orevidence which he knows or is reasonably expected toknow to be relevant for any purpose of this Act, orintending it to be used to commit, or assist in thecommission of fraud; or
(h) alters, destroys, conceals, covers up, falsifies, or makes a
false entry in any record, document, electronic data ortangible object,
shall be guilty of an offence, and shall be liable on convictio n
before a Court of Magistrates sitting as a court of criminaljudicature -
(i) to a fine ( multa ) not less than seven hundred
euro (€700) and not exceeding three thousandfive hundred euro (€3,500) in the case of anyoffence 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 thousandeuro (€10,000) for an offence committed underparagraphs (e) to (h), 
                    INCOME TAX MANAGEMENT           [CAP. 372.       65
and, in addition, for each offence as above referred to in para graphs
(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 f or
any term not exceeding six months, or to both such fine andimprisonment.
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 anyproceedings thereunder.
Penalty for 
offences against official secrecy.
Amended by:
L.N. 425 of 2007.53. Any person who, having or having had any official duty or
being or having been employed in the administration of the Inco me
Tax Acts, has or had access to, possession of or control over a ny
documents, information, returns or assessments, relating to theIncome Tax Acts, or copies thereof, and who, except as provided  in
article 4, at any time communicates or attempts to communicateany such information or anything contained in such documents,returns, assessments or copies to any person, shall be guilty o f 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 th an
two thousand and three hundred and twenty-five euro (2,325), or  to
imprisonment for a period not exceeding six months, or to bothsuch fine ( multa ) and imprisonment.
Tax to be payable 
notwithstanding any proceedings for penalties, etc.54. The institution of proceedings for, or the imposition of, a
penalty, fine or term of imprisonment under the Income Tax Actsshall not relieve any person from liability to payment of any t ax for
which he is or may be liable.
Saving for criminal 
proceedings.55. The provisions of the Income Tax Acts shall not affect any
criminal proceedings under any other Act or law.
Prosecution to be 
with the sanction of Commissioner.56. No prosecution for any offence against the Income Tax
Acts may be commenced except at the instance of or with the
sanction of the Commissioner.
Documents 
containing evidence of act or omission by warrant holder.
Added by: 
V . 1998.4.
Amended by:
V . 2012.46.Cap. 281.57.*(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 anypurpose of the Income Tax Acts for the year immediately precedi ng
the year of assessment beginning on 1st January, 1998 andsubsequent 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
*This article was originally added as article 19A.
 66        CAP. 372. ]                  INCOME TAX MANAGEMENT
omission mentioned in article 15(1)( a)(i) of the Accountancy
Profession Act he shall, subject to the other provisions of thi s
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 c opy
of the original and shall send to the Board together with any s uch
document a statement giving the reasons for which he has formedhis opinion, provided that no reference may be made in any suchstatement to any facts or circumstances which do not result fro m
the said documents.
(4) The Board may use any document received in accordance
with the provisions of this article for the purpose of an enqui ry
which it may conduct under the said Act but not for any otherpurpose.
(5) A  document sent to the Board and certified as a true copy of
the original in accordance with this article shall be admissibl e as
evidence as if it were the original and the production of suchdocument shall not empower any court or authority to request th e
Commissioner to produce the original of such document or to giv e
evidence on such document except as may be allowed under theother 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 handwriti ng or the signature or the iden tity
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 purpos e 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 inf orm the
Commissioner in writing whether it proposes to use the saiddocument 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 t o
the Commissioner.
(7) Within a reasonable time from the conclusion of any
enquiry in which any documents referred to the Board inaccordance with this article have been used, the Board shall de liver
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 otherwisehave access to documents or other information held bythe Commissioner;
 (b) binding the Commissioner to give evidence or expla-
nations in respect of any documents sent by him to theBoard;
(c) binding the Commissioner to conduct any investi-
gation or make reports on the conduct of any warrant
                    INCOME TAX MANAGEMENT           [CAP. 372.       67
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 orcertification 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 towhich this article refers unless it is sent to the Boardtogether with the said report or certification.
PART X
Power to make rules
Power to make 
rules.
Amended by:
II. 2002.81;IV . 2011.65;III. 2013.54.58. The Minister responsible for finance may from time to time
make rules generally for carrying out the provisions of this Ac t 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 anddelivery of which is authorised or required by or under
the Income Tax Acts and of regulations madethereunder, including the making of payments byelectronic means under the said Acts and regulations;
Cap. 123.(c) for the fees to be levied in relation to the issue of tax
residency and tax balance certificates, application for aruling 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.
Record of certain 
exemptions to be laid on Table of the House of Representatives.Cap. 123.59. A record of any exemption made by the Minister
responsible for finance under the provisions of article 12(2) o f 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 Representat ives
as soon as may be after it is made.
Transitory 
provision.Cap. 123.60. (1) The provisions of article 4(4A) of the Income Tax Act
as in force immediately before the coming into force of this Ac t 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 i n
that sub-article up to the year of assessment 1994.
Cap. 123. (2) The provisions of the Income Tax Act with respect to
returns of income and capital assets for the years of assessmen t up
to the year of assessment 1994, shall continue in force, asimmediately in force before the coming into force of this Act.
 68        CAP. 372. ]                  INCOME TAX MANAGEMENT