B 1137
L.N. 159 of 2019
INCOME TAX ACT
(CAP. 123)
European Union Tax Dispute  Resolution Mechanisms 
Directive Implementation Regulations, 2019
IN EXERCISE of the powers conf erred by articles 52B and 96 of
the Income Tax Act, the Minister for Finance, has made the following
regulations:-
Citation and 
commencement.1. (1) The title of these regulations is the European Union
Tax Dispute Resolution Mechan isms Directive Implementation
Regulations, 2019.
(2) These regulations shall come  into force on the 1 July 2019.
They shall apply to any complaint submitted on or after 1 July 2019
relating to questions in disput e relating to income or capital earned in
or after the year immediately  preceding the year of assessment 2019. 
Scope. 2. (1) The scope of these regulations is the implementation
of Council Directive (EU) 2017/1852 of 10 October 2017 on tax
dispute resolution mechanisms in the European Union.
(2) These regulations lay down rules on a mechanism to
resolve disputes between Malta and other Member States when thosedisputes arise from the interpre tation and application of agreements
and conventions that provide for  the elimination of double taxation of
income and, where applicable, capital. It also lays down the ri ghts and
obligations of the affected persons when such disputes arise. 
Interpretation. 3. (1) In these regulations, unless the context requires
otherwise:
"affected person" means any person, including an
individual, that is a resident of a Member State for tax purpos es,
and whose taxation is directl y affected by a question in disput e;
"Commission" means the Commission of the European
Union;
"Commissioner" means that it also includes his authorised
representative;
"competent authority" in respect of Malta means the
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Commissioner and in respect of any other Member State it means
the authority of that Member State which has been designated as
such by that Member State concerned;
"competent court" in respect of Malta means the Civil
Court, First Hall and in respect of any other Member State itmeans the court, tribunal or other body of a Member State whichhas been designated as such by tha t Member State concerned; 
"double taxation" means the i mposition by two or more
Member States of taxes covered by an agreement or convention
referred to in regulation 2(2) in respect of the same taxable
income or capital when it gives rise to either: 
(a) the imposition of an additional tax charge; 
(b) an increase in tax liabilities; or 
(c) the cancellation or reduction of losses that
could be used to offset  taxable profits; 
"Member State" means a member of the European Union;"Member State concerned" means a Member State involved
in the question in dispute;
"other Member State" means a Member State other than
Malta;
"question in dispute" means th e matter giving rise to a
dispute referred to in regulation 2(2).
(2) Any term not defined in thes e regulations shall, unless the
context requires otherwise, have the meaning that it has at that time
under the relevant agreement or convention referred to in regul ation
2(2) that applies on the date o f receipt of the first notificat ion of the
action that resulted in, or tha t will result in, a question in dispute. In
the absence of a definition under such agreement or convention,  a n
undefined term shall have the meaning that it had at that time under the
law of the Member State concerned for the purposes of the taxes  to
which the said agreement or conve ntion applies, any meaning und er
the applicable tax laws of that Member State prevailing over a
meaning given to the term under other laws of that Member State .
Complaint. 4. (1) An affected person shall be entitled to submit a
complaint to the Commissioner on a question in dispute requesti ng the
resolution thereof.
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(2) An affected person shall have the right to submit a
complaint to the Commissioner in  accordance with these regulations
regardless of whether he has recourse to remedies available und er any
other provisions of Maltese law or the law of any one (1) of th e other
Member States concerned.
(3) A complaint shall be submitted to the Commissioner in the
Maltese or the English language within three (3) years from the  receipt
by the affected person of the fir st notification of the action resulting in,
or that will result in, the question in dispute.
(4) The affected person shall indicate in the complaint made to
the Commissioner which other Memb er States are concerned and sh all
simultaneously submit the complaint with the same information t o the
competent authority of each of the other Member States concerne d.
Information that 
shall be 
submitted by the 
affected person.5. (1) A complaint shall only be accepted by the
Commissioner if, as a first step, the affected person making th e
complaint provides the Commissione r and the competent authoriti es of
each of the other Member States concerned with the following
information:
(a) the name(s), address(es),  tax identification number(s)
and any other information neces sary for identification of the
affected person(s) who presented the complaint to the competent
authorities and of any ot her person concerned; 
(b) the tax periods concerned; 
(c) details of the relevant fa cts and circumstances of the
case (including details of structu re of the transaction and of the
relationship between the affected  person and the other parties to
the relevant transacti ons, as well as any fa cts determined in g ood
faith in a mutual binding agreemen t between the affected person
and the tax administration, where applicable) and more
specifically, the nature and the date of the actions giving ris e to
the question in dispute (includi ng, where applicable, details o f
same income received in the other Member State and ofinclusion of such income in the taxable income in the other
Member State, and details of the tax charged or that will becharged in relation to such income in the other Member State), as
well as the related amounts in t he currencies of the Member
States concerned, with a copy of any supporting documents; 
(d) reference to the applicab le national rules and to the
agreement or convention referred  to in regulation 2(2); where
more than one (1) agreement or convention is applicable, the
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affected person making the c omplaint shall specify which
agreement or convention is being interpreted in relation to the
relevant question in dispute. S uch agreement or convention shal l
be the applicable agreement or  convention for the purposes of
these regulations; 
(e) the following information, together with copies of
any supporting documents:
(i) an explanation of why the affected person
considers that there is a question in dispute; 
(ii) the details of any app eals and litigation initiated
by the affected person regarding the relevant transactionsand of any court decisions concerning the question in
dispute; 
(iii) a commitment by the affected person to respond
as completely and quickly as possible to all appropriaterequests made by a competent authority and to provide any
documentation at the request of the competent authorities; 
(iv) a copy of the final tax assessment decision in
the form of a final tax assessm ent notice, tax audit report or
other equivalent document leading to the question in
dispute and a copy of any other documents issued by the
tax authorities with regard to the question in dispute where
relevant; 
(v) information on any complaint submitted by the
affected person under another mutual agreement procedure
or under another dispute resolution procedure as defined inregulation 21(5) and an e xpress commitment by the
affected person that he will abide by the provisions ofregulation 21(5), if applicable; 
(f) any specific additional in formation requested by the
competent authorities that is c onsidered necessary to undertake
the substantive considerat ion of the particular case.
(2) The Commissioner may reque st additional information
referred to in paragraph (f) of sub-regulation (1) within three  ( 3 )
months from the receipt of the complaint. The Commissioner may
make further requests for information during the mutual agreement
procedure under regulation 10 when he considers this to be nece ssary,
without prejudice to the applicab ility of the laws of Malta and  of the
national laws of the other Member  States concerned regarding th e
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protection of information and the protection of trade, business ,
industrial or profes sional secret or trade processes. 
(3) The affected person shall reply to any request made to him
by the Commissioner in accordance with paragraph (f) of sub-
regulation (1) within three (3)  months from the receipt of the request
and shall send a copy of the reply simultaneously to the compet ent
authorities of the other Member States concerned.
Acknowledg-
ment of receipt 
of the 
complaint.6. The Commissioner shall acknowledge receipt of the
complaint within two (2) months from the date on which he recei ves
it. He shall also within that period inform the competent autho rities of
the other Member Sta tes concerned of the r eceipt of the complaint and
about the language or languages he intends to use for communica tions
during the relevant proceedings.
Acceptance or rejection of the 
complaint.7. (1) The Commissioner shall take a decision on the
acceptance or rejection of the com plaint within six (6) months of the
receipt thereof or within six ( 6) months of the receipt of the
information referred to in regul ation 5(1)(f), whichever is lat er. The
Commissioner shall inform the affected person and the competent
authorities of the other Member States concerned of his decisio n
without delay.
(2) The Commissioner may decide to reject a complaint within
the period provided for in sub-regulation (1) if: 
(a) the complaint lacks in formation required under
regulation 5, (including any information requested under
regulation 5(1)(f) that was not  submitted within the deadline
specified in regulation 5(3)); 
(b) there is no question in dispute; or 
(c) the complaint was not submitted within the three (3)
year period set out i n regulation 4(3).
(3) When informing the affected  person of a decision to reject
a complaint in accordance with the provisions of sub-regulation  ( 1 ),
the Commissioner shall provide the general reasons for the rejection.
Cap. 372.
Cap. 372.(4) Where the competent authori ties of all the Member States
concerned have rejected the compl aint, the affected person shal l have
the same right to appeal from the decision of the Commissioner
rejecting the complaint as if th e Commissioner’s decision were an
assessment issued under the Income  Tax Management Act and as if  the
Commissioner has refused an objec tion to an assessment duly filed by
the affected person, and the relevant provisions of the Income Tax
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Management Act relati ng to appeals shall apply mutatis mutandis :
Cap. 372.Provided that the time within which an appeal may be made
in accordance with article 35(1) of the Income Tax Management A ct
shall run from the date on which the affected person has been notified
of the decision to reject the com plaint by the competent author ities of
all the Member States concerned.
(5) An affected person who exercises the appeal right referred
to in sub-regulation (4) or an appeal right under the national law of any
other Member State concerned shall be barred from making a requ est
under regulation 11(1)(a): 
(a) while the decision is still under appeal according to
the provisions of the national law of any of the Member States
concerned; 
(b) where the rejection decision can still be further
appealed under the appeal procedure of any of the Member
States concerned; or 
(c) when a rejection decision has been confirmed under
the appeal procedure in sub-paragr aph (5)(a) but it is not poss ible
to derogate from the decision of the relevant court or other
judicial bodies in any one (1) of t he Member States concerned.
(6) Where an appeal right referred to in sub-regulation (4) has
been exercised, the decision of t he relevant court or other jud icial body
shall be considered for the purposes of regulation 11(1)(a).
(7) Where the Commissioner ha s not taken a decision on the
complaint within the time provided for in sub-regulation (1), t he
complaint shall be deemed t o be accepted by the Commissioner.
Unilateral 
resolution of 
dispute.8. (1) Within the period of six (6) months from the receipt
of a complaint, or within six (6) months of the receipt of the
information referred to in regul ation 5(1)(f), w hichever is lat er, the
Commissioner may decide to resolve the question in dispute on aunilateral basis, without involving the competent authorities o f the
other Member States concerned. In such case, he shall notify th e
affected person and the competent authorities of the other Memb er
States concerned without delay.
(2) Following a resolution of t he question in dispute by the
Commissioner or by the competen t authority of any of the other
Member States concerned, the proceedings under these regulation s
shall be terminated.
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Termination of 
proceedings 
when complaint is withdrawn or 
when question 
in dispute ceases to exist.9. (1) An affected person that wishes to withdraw a
complaint shall simultaneously submit a written notification of
withdrawal to the competent authorities of each one (1) of the Member
States concerned. Such notification shall terminate all proceed ings
under these regulations with immediate effect. 
(2) When the Commissioner receives such a notification he
shall inform the competent author i t i e s  o f  t h e  o t h e r  M e m b e r  S t a t es
concerned of the termination of proceedings without delay. 
(3) If for any reason a question in dispute ceases to exist, all
proceedings under these regulati ons shall terminate with immediate
effect and the Commissioner shall inform the affected person of  this
state of affairs and of the gene ral reasons therefore without d elay. 
Mutual 
agreement 
procedure.10. (1) (a) Where the Commissioner and the competent
authorities of the other Membe r States concerned accept a complaint,
the Commissioner shall seek to resolve the question in dispute by
mutual agreement with the competent authorities of the other Member
States concerned within two (2) y ears starting from the last no tification
of a decision of the competent a uthority of one (1) of the Memb er
States on the acceptance of the complaint. 
(b) The said period of two (2) years may be
extended by up to one (1) year at the request of the competentauthority of another Member State concerned to theCommissioner:
Provided that such request is received by the
competent authorities of all the Member States concerned, andthe requesting competent authority provides written justificati on;
(c) The Commissioner may  request an extension
referred to in paragraph (b) where he considers that thecircumstances of the case make such an extension necessary. In
making such a request, the Comm issioner shall send a written
request with appropriate justification to all the competent
authorities of the other Member States concerned. 
(2) Once the Commissioner has re ached an agreement with the
competent authorities of the other Member States concerned as t o how
to resolve the question in dispute within the period provided f or in sub-
regulation (1), he shall, without delay, notify this agreement to the
affected person, as a decision that is bi nding on the Commissio ner and
enforceable by the affected person, subject to the affected per son
accepting the decision and renounc ing the right to any other re medy,
where applicable: 
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Provided that where proceed ings regarding such other
remedies have already commenced, the decision shall only become
binding and enforceable once the affected person has providedevidence to the Commissioner and to the competent authorities o f the
other Member States concerned that action has been taken to ter minate
those proceedings. Such evidence shall be provided not later th an sixty
(60) days from the date on which such decision was notified to the
affected person. The Commissione r shall then implement the deci sion
without delay, irrespective of a ny time limits prescribed by Maltese
law.
(3) Where the competent authorities of the Member States
concerned have not reached an agreement on how to resolve the
question in dispute within the period provided for in sub-regul ation
(1), the Commissioner shall infor m the affected person indicating the
general reasons for the failure to reach an agreement.
Dispute 
resolution by 
the Advisory Commission.11. (1) Upon a request made by the affected person, the
Commissioner shall take the necessary action for the setting up  of an
Advisory Commission in accordance with regulation 13 where:
(a) the complaint submitted by such affected person was
rejected by the Commissioner under regulation 7(2) or, where th e
Commissioner has not rejected the complaint, the complaint was
rejected by the competent author ity of at least one (1) of the
other Member States concerned under provisions of the national
law of that Member State corresponding to regulation 7(2); or
(b) the Commissioner and the competent authorities of
the other Member States concerned had accepted the complaintthat was submitted by the affected person but failed to reach a n
agreement on how to resolve the question in dispute by mutualagreement within the time lim it provided for in regulation 10(1 ).
The functions and obligations o f an Advisory Commission and
its members as provided for in t hese regulations shall be deeme d to
form part of its t erms of reference.
(2) The affected person may only make a request under
paragraph (a) of sub-regulation (1) if, in accordance with the laws of
Malta or any applicable national rules of the Member State whos e
competent authority rejected the complaint in accordance withprovisions in the national law of that Member State that corres pond to
regulation 7(2):
(a) no appeal can be made;
(b) no appeal is pending; or 
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(c) the affected person has formally renounced his right
of appeal.
The request shall include a declaration to this effect.
(3) The affected person shall make the request to the
Commissioner to set up an Advisory Commission in writing, not l ater
than fifty (50) days from the date of receipt of the notificati on under
regulation 7(1) or 10(3) or fifty (50) days from the date of de livery of
the decision by the relevant court or judicial body under regul ation
7(4), as the case may be. 
(4) The Commissioner shall take the necessary steps for the
setting up of the Advisory Commission by not later than one hun dred
and twenty (120) days from the rec eipt of the request referred to in the
foregoing sub-regulations, and once the Advisory Commission is set
up, its Chairperson shall inform the affected person thereof wi thout
delay.
(5) The Advisory Commission set up in the case of sub-
regulation (1)(a) shall adopt a decision on the acceptance of t he
complaint within six (6) months from the date of its establishm ent. It
shall notify the competent authorities of its decision within t hirty (30)
days of the adoption thereof.
(6) (a) Where the Advisory Commission set up in the case of
sub-regulation (1)(a) has confir med that all of the requirement s under
regulations 4 and 5 have been satisfied, the mutual agreement
procedure provided for in regulation 10 shall be i nitiated at t he request
of the Commissioner or of the competent authority of any one (1 ) of
the other Member States concerned. Where the request is made by  the
Commissioner, he shall notify the Advisory Commission, the
competent authorities of the other Member States concerned and the
affected person thereof. The per iod provided for in regulation 10(1)
shall start from the d ate of the notification of the decision taken by the
Advisory Commission of the acceptance of the complaint. 
(b) Where none of the competent authorities of the
Member States concerned has re quested the initiation of the
mutual agreement procedure as per paragraph (a) w ithin sixty (6 0)
days of the date of the notificat ion of the decision of the Adv isory
Commission, the Advisory Commi ssion shall provide an opinion
on how to resolve the question in dispute as provided for in
regulation 19(1). In such a case, for the purposes of regulatio n
19(1), the Advisory C ommission shall be deemed to have been set
up on the date on which that sixty (60) day period expired. 
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(7) In the case of paragraph (b) of sub-regulation (1), the
Advisory Commission shall deliv er an opinion on how to resolve the
question in dispute in accordance with regulation 19(1).
Appointments 
by national 
appointing body.12. (1) If an Advisory Commission is not set up within the
period provided for in regulation 11(4), the relevant affected person
may apply to the Administrative Review Tribunal (national appoi nting
body) to set up the Advisory Commission. 
(2) Where the Commissioner has failed to appoint at least one
(1) independent person of standing and a substitute, the affect ed
person may request the national appointing body to appoint an
independent person of standing an d a substitute from the list r eferred
to in regulation 14:
Provided that if more than one (1) affected person is
involved in the proceedings, a re quest to the Commissioner for the
appointment of at least one (1)  independent person of standing and a
substitute may only be made by an affected person who is reside nt in
Malta.
(3) The appointment of the independent persons and their
substitutes under sub-regulations  (1) or (2) shall be referred to the
national appointing body only after the end of the one hundred and
twenty (120) day period referred to in regulation 11(4), and wi thin
thirty (30) days after the end of that period. 
 The Advisory 
Commission.13. (1) The Advisory Commission set up in accordance with
regulation 11 shall have the  following composition: 
(a) one (1) Chairperson; 
(b) one (1) representative of the competent authority of
each of the Member States concerned: 
Provided that on agreement between the competent
authorities, the number of such representatives may be increase d
to two (2) for each competent authority; and
(c) one (1) independent person of standing, who shall be
appointed by the competent authority of each of the Member
States concerned from the list of independent persons of standing
nominated by the Member States:
Provided that on agreement between the competent
authorities, the number of such persons appointed may be
increased to two (2) for each competent authority. 
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(2) The rules for the appointment  of the independent persons of
standing shall be agreed by the Commissioner together with the
competent authorities of the other Member States concerned.Following the appointment of the independent persons of standin g, a
substitute shall be appointed for each of them according to the  rules for
the appointment of the independent persons in cases where theindependent persons are prevente d from carrying out their dutie s.
(3) Where the rules for the appointment of independent persons
of standing have not been agreed to in accordance with sub-regu lation
(2), the appointment of such persons shall be carried out by dr awing
lots. 
(4) Except where the independent persons of standing have
been appointed by the national appointing body as provided in
regulation 12, or by the competent court or national appointing body ofanother Member State as provided i n  t h e  l a w  o f  t h a t  o t h e r  M e m b e r
State by means of provisions c orresponding to regulation 12, th e
Commissioner may object to the appointment of any particular
independent person of standing fo r any reason agreed in advance
between the competent authoritie s concerned or for any one (1) of the
following reasons: 
(a) that person belongs to or is working on behalf of one
of the tax administrations concerned or was in such a situation  at
any time during the previous three (3) years; 
(b) that person has, or has had, a material holding in or
voting right in, or is or has been an employee of or adviser to  any
affected person concerned, at any time during the last five (5)years prior to the da te of his appointment; 
(c) that person does not offer a sufficient guarantee of
objectivity for the settlement o f the dispute or disputes to be
decided; 
(d) that person is an employee with an enterprise that
provides tax advice or otherwise gives tax advice on aprofessional basis, or was in suc h a situation at any time during a
period of at least three (3) ye a r s  p r i o r  t o  t h e  d a t e  o f  h i s
appointment. 
(5) The Commissioner may request that a person of standing
who has been appointed in accordance with sub-regulation (2) or  (3),
or his substitute, shall disclose any interest, relationship or  any other
matter that is likely to affect  that person's independence or i mpartiality
or that might reasonably create an appearance of bias in the
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proceedings. For a period of twelve (12) months after the opini on of the
Advisory Commission was delivere d, an independent person of sta nding
who is part of the Advisory Commi ssion shall not be in a situat ion that
would have given cause to a competent authority to object to hi s
appointment as provided for in s ub-regulation (4) had he been i n that
situation at the time of appointment to that Advisory Commission.
(6) The representatives of the competent authorities and the
independent persons of standing appointed in accordance with su b-
regulation (1) shall elect a Chairperson from the list of perso ns
referred to in regulation 14. Unless the representatives of the
competent authority of each of the Member States concerned and the
independent persons of standing ag ree otherwise, the Chairperso n
shall be a judge. 
The list of 
independent 
persons of 
standing.14. (1) For the purpose of the list of independent persons of
standing referred to in regulat ion 13, the Commissioner shall n ominate
at least three (3) individuals w ho are competent and independen t, and
who can act with imparti ality and integrity. 
(2) The Commissioner shall notify the Commission of the
names of the independent persons  of standing whom he has nomina ted.
The Commissioner shall also pr ovide the Commission with complete
and up-to-date information rega rding those persons' professiona l and
academic background, their competen ce, their expertise and any
conflicts of interest that they may have. The Commissioner may
specify in the notification which of those persons may be appointed as
a Chairperson. 
(3) The Commissioner shall in form the Commission of any
changes to the list of independent persons without delay. 
(4) The Commissioner shall put in place procedures for
removing any person whom he has appointed from the list ofindependent persons of standi ng if that person ceases to be
independent. 
(5) Where, taking into consideration the relevant provisions of
this regulation, the Commissioner has reasonable cause to objec t to an
independent person of standing appointed by the competent autho rity
of a Member State remaining in  the above mentioned list for rea sons of
lack of independence, he shall inform the Commission and provid e
appropriate evidence to support its concern. 
(6) Where the Commissioner is informed by the Commission
of an objection to an independ ent person of standing appointed by him
and of supporting evidence, he shall within six (6) months take  t h e
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necessary steps to investigate the complaint, and shall decide whether
to retain or remove that person from the list. The Commissioner  shall
then notify the Commission accordingly without delay.
(7) The list of independent persons of standing referred to in
regulation 13 shall consist of t he independent persons of stand ing
nominated by the Commissioner in  accordance with this regulatio n and
of all the other independent per sons of standing nominated by t he other
Member States concerned in accordance with their respective nat ional
laws.
The Alternative 
Dispute 
Resolution Commission.15. (1) The Commissioner may agree with the competent
authorities of the other Member States concerned to set up an
Alternative Dispute Resolution Co mmission instead of an Advisor y
Commission to deliver an opinion on how to resolve the question  in
dispute. The Commissioner may also agree with the competentauthorities of the other Member States concerned to set up an
Alternative Dispute Resoluti on Commission in the form of a
committee that is of a permane nt nature, known as a "Standing
Committee".
(2) Except for the rules regarding the independence of its
members set out in regulations 13(4) and (5), the Alternative D ispute
Resolution Commission may differ regarding its composition and form
from the Advisory Commission. An  Alternative Dispute Resolution
Commission may apply, where appr opriate, any dispute resolution
processes or technique to solve t he question in dispute in a bi nding
manner. As an alternative to the  type of dispute resolution process
applied by the Advisory Commission, i.e. the independent opinio n
process, any other type of disput e resolution process, includin g the
"final offer" arbitrat ion process (otherwise known as "last bes t offer"
arbitration), can be agreed by the Commissioner under this regu lation
together with the competent authorities of the other Member Sta tes
concerned and applied by the Al ternative Dispute Resolution
Commission. 
(3) The Commissioner shall agree on the Rules of Functioning
in accordance with regulation 16, together with the competent
authorities of the other Member States concerned. 
(4) Regulations 17 and 18 shall apply to the Alternative
Dispute Resolution Commission unless otherwise agreed to in theRules of Functioning referred to in regulation 16.
 Rules of 
Functioning.16. (1) Within the one hundred and twenty (120) day period
provided for in regulation 11(4 ), the Commissioner shall notify  t h e
affected person with the following: 
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(a) the Rules of Functioning for the Advisory
Commission or the Alternative D ispute Resolution Commission; 
(b)  the date by which the opinion on the resolution of the
question in dispute shall be adopted; 
(c) references to any applicable legal provisions in
Maltese law and to any applicable agreements or conventions. 
(2) The Rules of Functioni ng shall be signed by the
Commissioner together with the co mpetent authorities of the oth er
Member States concerned. The Ru les of Functioning shall provide  in
particular: 
(a) the description and the characteristics of the question
in dispute; 
(b) the terms of reference on which the competent
authorities of the Member States concerned agree as regards the
legal and factual questions to be resolved; 
(c) the form of the dispute resolution body, which shall
be either an Advisory Commission or an Alternative DisputeResolution Commission, as well as the type of process for any
Alternative Dispute Resolution, if the process differs from the
independent opinion process applied by an Advisory
Commission; 
(d) the time frame for the dispute resolution procedure; 
(e) the composition of the Advisory Commission or
Alternative Dispute Resoluti on Commission (including the
number and names of the members , details of their competence
and qualifications, and disclosing any conflicts of interest of  the
members); 
(f) the rules governing the participation of the affected
person(s) and third parties in the proceedings, exchanges of
memoranda, information and evidence, the costs, the type of
dispute resolution process to b e used, and any other relevant
procedural or organis ational matters; 
(g) the logistical arrangements for the Advisory
Commission's proceedings a nd delivery of its opinion:
Provided that if an Advisory Commission is set up to
deliver an opinion under re gulation 11(1)(a), only the
information referred to in paragraphs (a), (d), (e) and (f) of this
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sub-regulation shall be set out in the Rules of Functioning. 
(3) Where the Rules of Functioni ng are incomplete or were not
notified to the affected person, Standard Rules of Functioning
established by the Commission in accordance with Council Direct ive
(EU) 2017/1852 of 10 October 2017  on tax dispute resolution
mechanisms in the European Union shall apply.
(4) Where the Commissioner has not notified the Rules of
Functioning to the affected person in accordance with sub-regul ations
(1) and (2), or where the competent authorities of any one (1) of the
other Member States concerned have not notified the Rules of
Functioning to the affected perso n, the independent persons of standing
and the Chairperson shall complete the Rules of Functioning on the
basis of the standard rules refe rred to in sub-regulation (3) a nd shall send
them to the affected person within two (2) weeks from the date that the
Advisory Commission or Alternati ve Dispute Resolution Commission
was set up.
(5) Where the independent pers ons and the Chairperson have
not agreed on the Rules of Functioning or have not notified the m to the
affected person, the affected per son or affected persons may su bmit an
application to the Civil Court, F irst Hall, or to the competent  court in
one (1) of the other Member States concerned in order to obtain  a n
order for the implementati on of the Rules of Functioning. 
Costs of 
proceedings.17. (1) Except as provided in sub-regulation (2), and unless
the Commissioner has agreed otherwise with the competent authorities
of the other Member States concerned, the following costs shall  b e
shared equally among the  Member States concerned:
(a) the expenses of the independent persons of standing,
which are to be an amount equivalent to the average of the usua l
amount reimbursed to high ranking civil servants of the MemberStates concerned; and 
(b) the fees of the independen t persons, where applicable,
which are to be limited to one thousand euro (€1,000) per perso n
per day for every day on which the Advisory Commission or
Alternative Dispute Reso lution Commission meets. 
(2) The Commissioner shall not bear any costs that are
incurred by the affected person. 
(3) Where the affected person has made: 
(a) a notification of withdrawal of complaint under
regulation 9 or under correspondi ng provisions of the national
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law of any other Member State concerned; or 
(b) a request under the provi sions of regulation 11(1) or
under corresponding provisions of the national law of any other
Member State concerned following a rejection made under
regulation 10(1) or under corresponding provisions of the
national law of any other Mem ber State concerned, and the
Advisory Commission has decided that the relevant competent
authorities were correct i n rejecting the complaint,
and the competent authorities of the Member States concerned soagree, all the costs referred to in sub-regulation (1)(a) and ( b) shall
be borne by the affected person. 
Information, 
evidence and hearings.18. (1) For the purposes of the procedure referred to in
regulation 11, where the Commissioner so agrees with the compet ent
authorities of the other Member States concerned, the affected
person(s) may provide the Advi sory Commission or Alternative
Dispute Resolution Commission with any information, evidence ordocuments that may be relevant for the decision. 
(2) The affected person(s) and t he Commissioner shall provide
any information, evidence or doc uments upon request by the Advi sory
Commission or Alternative Dispute Resolution Commission.However, the Commissioner may re fuse to provide information to the
Advisory Commission in any one (1) of the following cases, wher e: 
(a) obtaining the information requires carrying out
administrative measures that are against Maltese national law; 
(b) the information cannot be obtained under Maltese
national law; 
(c) the information concerns trade secrets, business
secrets, industrial secrets, profe ssional secrets or trade proc esses; 
(d) the disclosure of the information is contrary to public
policy.
(3) Affected persons may, at the ir request and with the consent
of the Commissioner and the competent authorities of the other
Member States concerned, appear  or be represented before an
Advisory Commission or Alternative Dispute Resolution Commission.
Affected persons shall appear or be represented before it upon request
by the Advisory Commission or A lternative Dispute Resolution
Commission. 
(4) The independent persons of standing or any other member
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shall be subject to obligations o f professional secrecy in rela tion to
information they receive in their capacity as members of an Adv isory
Commission or Alternative Dispute Resolution Commission. 
(5) Affected persons, and where applicable, their
representatives, shall undertake to treat any information (incl uding
knowledge of documents) that they receive during such proceedin gs as
secret. The affected person and his representatives shall make a
declaration to this effect to the Commissioner and the competen t
authorities of the other Member States concerned when so reques ted
during the proceedings.
Cap. 377.
Cap. 9.(6) The provisions of the Professional Secrecy Act and of
article 257 of the Criminal Code shall apply in respect of any breach of
the secrecy obligations impos ed under this regulation.
(7) The Commissioner shall inform the Commission of any
measures taken in order to pen alise any breach of secrecy oblig ation
provided for in this regulation.
The opinion of 
the Advisory 
Commission or 
Alternative Dispute Resolution 
Commission.19. (1) An Advisory Commission or Alternative Dispute
Resolution Commission shall deliver its opinion to the Commissi oner
and to the competent a uthorities of the other Member States con cerned
no later than six (6) months after the date on which it was set  up.
Where the Advisory Commission or Alternative Dispute Resolution
Commission considers that the que stion in dispute is such that it would
need more than six (6) months to deliver an opinion, this perio d may
be extended by three (3) months. The Advisory Commission orAlternative Dispute Resolution Commission shall inform theCommissioner, the competent authorities of the other Member Sta tes
concerned and the affected persons of any such extension. 
(2) The Advisory Commission or Alternative Dispute
Resolution Commission shall base  its opinion on the provisions of the
applicable agreement or convention referred to in regulation 2( 2) as
well as on any applicable national rules. 
(3) The Advisory Commission or Alternative Dispute
Resolution Commission shall adopt  its opinion by a simple major ity of
its members. Where a majority cannot be reached, the vote of th e
Chairperson shall determine the final opinion. The Chairperson shall
communicate the opinion of the Advisory Commission or Alternative
Dispute Resolution Commission to the Commissioner and to thecompetent authorities of the other Member States concerned.
Final decision. 20. (1) The Commissioner shall agree with the competent
authorities of the other Member States concerned on how to reso lve
the question in dispute within si x (6) months of the notificati on of the
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opinion of the Advisory Commission or Alternative Dispute
Resolution Commission. 
(2) The Commissioner t ogether with the competent authorities
of the other Member States concerned may take a decision whichdeviates from the opinion of the  Advisory Commission or Alternative
Dispute Resolution Commission. Ho wever, if the Commissioner fai ls
to reach an agreement as to how to resolve the question in disp ute, the
Commissioner shall be bound by that opinion. 
(3) The Commissioner shall no tify the final decision on the
resolution of the question in dispute to the affected person wi thout
delay. In the absence of such not ification within thirty (30) d ays of the
decision having been taken, the af fected person shall be entitl ed to file
an application in the Civil Cour t, First Hall requesting the Co urt to
order the Commissioner to provide a copy of the final decision without
further delay. 
(4) The final decision shall be binding on the Commissioner
and shall not constitute a precedent. 
(5) The final decision shall be  implemented subject to the
affected person(s) accepting th e final decision and renouncing the right
to any domestic law remedy within sixty (60) days from the date when
the final decision was no tified, where applicable. 
(6) Except where the relevant c ourt or other judicial body of a
Member State concerned decides a ccording to its applicable nati onal
rules on remedies and applying th e criteria under regulation 13  t h a t
there was lack of independence, the final decision shall, whereapplicable, be implemented under the Income Tax Acts and thetaxation under those Acts shall be amended accordingly, irrespe ctive
of any time limits pres cribed by Maltese law.
Cap. 372.(7) Where the Commissioner fails to implement the final
decision, the affected person shall be entitled to present an a pplication
to appeal as if the Commissioner’ s failure were an assessment i ssued
under the Income Tax Management Act and as if the Commissioner
has refused an objection to an assessment duly filed by the aff ected
person, and the relevant provisions of that Act relating to app eals shall
apply mutatis mutandis :
Cap. 372.Provided that the time within which an appeal may be made
in accordance with article 35(1) of the Income Tax Management A ct
shall run from the expiration of  six (6) months from the date on which
the affected person is served with a copy of the final decision. 
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Interaction with 
national 
proceedings and derogations.21. (1) The fact that the action that gave rise to a question in
dispute has become final under the Income Tax Acts shall not pr event
the affected persons from having recourse to the procedures provided
for in these regulations. 
(2) The submission of the question in dispute to the mutual
agreement procedure or to the di spute resolution procedure unde r
regulations 10 and 11 respectivel y shall not prevent the Commis sioner
from initiating or continuing judi cial proceedings or proceedings for
administrative and criminal penalties in rel ation to the same m atters. 
(3) Affected persons may hav e recourse to the remedies
available to them under the nati onal law of the Member States
concerned. However, where the affected person has commencedproceedings to seek such a remedy , the terms of periods referre d to in
regulations 8 and 10(1) respectively shall commence from the da te on
which a judgement delivered in t hose proceedings has become fin al or
on which those proceedings have otherwise been definitively
concluded or where the proceedings have been suspended.
Cap. 372.(4) Where a decision on a questi on in dispute delivered by the
Administrative Review Tribunal or the Court of Appeal has been
rendered final and conclusive in terms of article 38 of the Inc ome Tax
Management Act: 
(a) before an agreement has been reached by the
competent authorities of the Member States concerned under themutual agreement procedure under regulation 10 on that question
in dispute, the Commissioner shall notify the competentauthorities of the other Member States concerned of that decisi on
and that the procedure is to be t erminated as from the date of
such notification; 
(b)  before the affected person has made a request under
regulation 11(1), the provision s of regulation 11(1) do not app ly
if the question in dispute had remained unresolved during the
whole of the mutual agreement procedure under regulation 10, in
which case the Commissioner shall inform the other competentauthorities of the Member States concerned of the effect of tha t
decision; 
(c) the dispute resolution process under regulation 11 is
to be terminated if the decision was rendered at any time after  an
affected person has made a re quest under regulation 11(1) but
before the Advisory Commissi on or the Alternative Dispute
Resolution Commission has delivered its opinion to thecompetent authorities of the other Member States concerned, in
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conformity with regulation 19, in which case the Commissioner
is to inform the competent author ities of the other Member Stat es
concerned and the Advisory C ommission or the Alternative
Dispute Resolution Commission of  the effect of that decision. 
(5) The submission of a complaint as provided under
regulation 4 shall put an end to any other ongoing proceedings under
the mutual agreement procedure or dispute resolution procedure under
an agreement or convention that i s being interpreted or applied  i n
relation to the relevant question in dispute. Such other ongoin g
proceedings concerning the releva nt question in dispute shall come to
an end with effect from the date  of the first receipt of the co mplaint by
any one (1) of the competent au thorities of the Member States
concerned. 
(6) By way of derogation fr om regulation 11, the
Commissioner may deny access to t he dispute resolution procedur e
under that regulation in cases where penalties were imposed und er the
Income Tax Acts in relation to the adjusted income or capital for tax
fraud, wilful default and gross negligence. Where judicial or
administrative proceedings were commenced that could potentiall y
lead to such penalties, and these proceedings are being conduct ed
simultaneously with any of the proceedings referred to in these
regulations, the Commissioner m ay stay the proceedings under th ese
regulations as from the date of acceptance of the complaint unt il the
date of the final outcome of those proceedings. 
(7) The Commissioner may de ny access to the dispute
resolution procedure under regulation 11 on a case-by-case basis
where a question in dispute does not involve double taxation. I n such a
case, the Commissioner shall inform the affected person and thecompetent authorities of the other Member States concerned withoutdelay. 
Special 
provisions for 
individuals and 
smaller undertakings.22. (1) Where the affected person is either:
(a)  an individual; or 
(b) not a large undertaking and does not form part of a
large group (both as defined in Directive 2013/34/EU of the
European Parliament and of the Council), 
the affected person may submit the complaints, replies to a req uest
for additional information, wit hdrawals and requests specified in
regulations 4, 5(2), 9 and 11(1), respectively or in provisions of the
law of any Member State concerned that correspond to those
regulations ("communications"), by way of derogation from those
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provisions, only to the competent authority of the Member State  in
which the affected person is resident. 
(2) When the Commissioner receives any such communication,
he shall, within two (2) months, notify the competent authoriti es of all
the other Member States concerned at the same time. 
(3) Once a notification of any such communication has been
made by the competent authority that receives it to the other competent
authorities of the Member States  concerned, the affected person  shall
be deemed to have submitted the communication to all the Member
States concerned as of the date of such notification. 
(4) When the Commissioner recei ves from an affected person
referred to in sub-regulation (1) additional information reques ted
under regulation 5(2), he shall transmit a copy to the competent
authorities of all the other Memb er States concerned at the sam e time. 
(5) Once a submission has been made to the competent
authorities of all Member Stat es of a copy of additional inform ation
received by the Commissioner as aforesaid or received by thecompetent authority of any other Member State concerned in term s of
provisions of the law of that Member State corresponding to reg ulation
5(2), it shall be deemed that a dditional information has been received
by all Member States concerned as at the date of such receipt o f
information.
Publicity. 23.  (1) The Commissioner may agree with the competent
authorities of the other Member States concerned to publish the  final
decisions referred to in regulation 20 in their entirety, subje ct to the
consent of each one (1) of the affected persons concerned. 
(2) Where the competent authorities or affected person
concerned do not consent to publis hing the final decision in it s
entirety, the Commissioner shall publish an abstract of the fin al
decision. That abstract shall contain a description of the issue and thesubject matter, the date, the t ax periods involved, the legal b asis, the
industry sector, and a short description of the final outcome. It shall
also include a description of t he method of arbitration used. The
Commissioner shall send the in formation to be published in
accordance with this sub-regulation to the affected person befo re its
publication. The affected person may, no later than 60 days fro m the
receipt of such information, request the Commissioner not to pu blish
information that concerns any trade, business, industrial or pr ofessional
secret, information that concerns a trade process, or informati on that is
contrary to public policy.
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(3) The Commissioner shall not ify the information to be
published in accordance with sub-regulation (2) to the Commission
without delay.
(4) The final decision, whether in its entirety or an abstract
thereof, shall be published on the website of the Office of theCommissioner for Revenue.
VERŻJONI ELETTRONIKA