L.S. 123.54 Ordni dwar Eżenzjoni mit-Taxxa fuq l-Income u Taxxa fuq Dokumenti u Trasferimenti fuq Trasferimenti ta Djar ta Residenza lil Azjonisti

(1)The title of this Order is the Income Tax and Duty on Documents and Transfers on Transfers of Dwelling Houses to Shareholders Exemption Order. Citation and scope.

(2)This Order applies to any transfer of a dwelling house made by a company to an individual by means of a deed published not earlier than the 21 November, 2000 and not later than 30th September, 2001 and which satisfies all the following conditions (

1. a)the transferee is on the date of the transfer a shareholder in the said company and has been a shareholder of that company without interruption since at least the 20th November, 2000 up to the date of the transfer; (
2. b)at 20th November, 2000 and up to the date of the transfer the transferee alone or together with a member or members of his family held directly or indirectly an aggregate of at least twenty percent in nominal value of the shares or of the voting rights in that company; (
3. c)at 20th November, 2000 and up to the time of the transfer the transferee or a member of his family occupied without interruption the dwelling house as his sole ordinary residence. 2. In this Order - Interpretation. (
4. a)a member of the family of the transferee means his spouse, ascendant, descendant, brother or sister, or a descendant of his brother or sister; (
5. b)"dwelling house" includes a garage attached to or underlying that house or a garage of not more than 30 square meters situated within 500 meters of that house and transferred by the said company to the transferee by means of the same deed with that house. 3. Upon a transfer to which this Order applies (
6. a)if the use of the dwelling house by the occupier or occupiers up to the date of the transfer is deemed to constitute a benefit by reason of an employment or office in terms of article 4

(1)(

1. b)of the Income Tax Act, no tax shall be chargeable under that Act on the Transfer terms. Amended by: L.N. 409 of 2007. Cap. 123. 2 [ S.L.123.54 INCOME TAX AND DUTY ON DOCUMENTS AND TRANSFERS ON TRANSFERS OF DWELLING HOUSES TO SHAREHOLDERS EXEMPTION value of the said benefit; (
2. b)if the transfer constitutes a benefit by reason of an employment or office in terms of the said article 4

(1)(

1. b)of the Income Tax Act, no tax shall be chargeable under that Act, on the value of the said benefit; (
2. c)no gain shall be deemed to arise from the said transfer for the purposes of article 5 of the Income Tax Act; Cap. 364. Transfer conditions. Cap. 372. Cap. 123. (
3. d)no duty shall be chargeable in terms of article 32 of the Duty on Documents and Transfers Act in excess of €2.50 for every €100 or part thereof of the deemed transfer value determined in accordance with regulation 4(a). 4. The exemptions granted by this Order shall be subject to the following conditions (
4. a)the deemed transfer value referred to in regulation 3(
5. d)shall be the cost at which the company had acquired the dwelling house increased by the cost of improvements incurred by the company before the 21st November, 2000 as shown in the records which that company is required to keep in accordance with article 19

(4)(

1. a)of the Income Tax Management Act disregarding any revaluation that may have been made by the company of the value of the said property; (
2. b)if the actual consideration for the transfer is less than the deemed transfer value determined as aforesaid the shortfall shall not be treated as a loss for any of the purposes of the Income Tax Act and the amount of the shortfall shall, moreover, be deemed for the purposes of that Act to be a dividend paid by that company to the transferee out of the untaxed account and the provisions of article 59

(5)and of article 62 and the other relevant provisions of that Act shall apply accordingly; (c) for the purpose of determining the capital gains in terms of the Income Tax Act arising upon a subsequent transfer of the dwelling house in full or in part by the transferee, the cost of acquisition of the dwelling house shall be deemed to be the deemed transfer value as determined in accordance with paragraph (a), and notwithstanding the provisions of article 5

(10)(

1. b)and (
2. c)of the said Act, no capital loss resulting from or bad debt incurred in relation to any other transfer shall be set off against any capital gains determined as aforesaid; INCOME TAX AND DUTY ON DOCUMENTS AND TRANSFERS ON TRANSFERS OF DWELLING HOUSES TO SHAREHOLDERS EXEMPTION [ S.L.123.54 (
3. d)when the parties to the transfer wish to avail themselves of the exemptions granted by this Order they shall make and give in a form supplied by the Commissioner the declarations and all the information specified in the Schedule to this Order. The declarations in the said form shall be signed on behalf of the company by an individual who is an officer of that company duly authorised for that purpose, by the transferee, by a notary public and by a certified public auditor as specified in the said Schedule and the form shall be delivered to the Commissioner of Inland Revenue together with the notice relative to the deed required in terms of article 51 of the Duty on Documents and Transfers Act and the Duty on Documents and Transfer Rules, within the time limit prescribed for the delivery of that notice: provided that in the case of a transfer made before the date of this Order the said form shall be delivered to the Commissioner at the Capital Transfer Division of the Inland Revenue Department, Valletta, by not later than the 31 July, 2001; 3 Cap. 364. S.L.364.06 (
4. e)the parties to the deed shall furnish to the Commissioner such further information and documents as he may at any time reasonably require for ascertaining the eligibility to the exemptions granted by this Order; (
5. f)in the event that any condition set out in this regulation is not fulfilled or that any information or declaration given or made for the purposes of this Order results to be incorrect in any material respect, the exemptions shall be forfeited; (
6. g)this Order shall have such retroactive effect as may be necessary to give effect to the exemptions granted herein with respect to any transfer to which this Order applies made before the date of this Order. 5. The exemptions granted by this Order may not be availed of in part, and when they have been validly availed of all the parties to the transfer shall be deemed to have accepted the conditions set out in regulation 4 notwithstanding any renunciation or reservation made by any person. Exemptions may not be availed of in part. 4 [ S.L.123.54 INCOME TAX AND DUTY ON DOCUMENTS AND TRANSFERS ON TRANSFERS OF DWELLING HOUSES TO SHAREHOLDERS EXEMPTION SCHEDULE Information and Declarations for the purposes of the Income Tax and Duty on Documents and Transfers on Transfers of Dwelling Houses to Shareholders Exemption Order Part A Description of the dwelling house and the transfer value information to be supplied and declaration to be made and signed by an individual who is an officer of the company duly authorised for this purpose 1. Address ....................................................................................... 2. Date when acquired by the company ............................................ 3. Cost at which the property was acquired by the company as recorded in the company’s records ............................................... 4. Cost of improvements as recorded in the company’s records ........ 5. Deemed transfer value (3 + 4) ...................................................... 6. Value of consideration payable by the transferee for the transfer... 7. Excess (if any) of the deemed transfer value (as in 5) over the consideration (as in 6) ................................................................. I declare that the above information is correct and that I am authorised by the company to sign this declaration. Signed for and on behalf of the company by (name of officer) ................ Designation .................................... Address ................................................................................................. Identity document number .................................... Signature ..................................... Date ........................................... Part B Declaration by Certified Public Auditor I declare that the information given in Part A corresponds to the relevant records of ................................................................ for the financial years ending .............................................. . Signed by (name of Certified Public Auditor) ........................................ Address ................................................................................................. Signature ............................................... Official Stamp ........................................ Date ...................................................... INCOME TAX AND DUTY ON DOCUMENTS AND TRANSFERS ON TRANSFERS OF DWELLING HOUSES TO SHAREHOLDERS EXEMPTION [ S.L.123.54 5 Part C Declaration to be made and signed by an individual who is an officer of the company duly authorised for the purpose To be made only in the case of an excess to which item 7 of Part A refers I declare that the amount of ........................ is being accounted for by the company for the purposes of the Income Tax Act as representing a dividend paid to ....................................... (the transferee) out of its untaxed account and that the company has undertaken to comply with the provisions of article 59

(5)and of article 62 and all the other provisions of that Act relevant to the payment of a dividend out of its untaxed account. Signed for and on behalf of the company by (name of officer) ......................................... Signature ................................................... Date ......................................................... Part D Description of shareholding and voting rights in the company Declaration to be made and signed by an individual who is an officer of the company duly authorised for such purpose and by the transferee Name of shareholder Number of shares held (*) Nominal Number of value of each votes attached to each share share Any relationship to transferee Total nominal value of shares held Total share capital (*) Shares of a different class are to be indicated separately Signed for and on behalf of the company by (name of officer) ................................ Signature ....................................... Name of transferee .............................................................. Address ................................................................................................. Identity document number ..................................................................... Signature ............................................. Date .................................................... 6 [ S.L.123.54 INCOME TAX AND DUTY ON DOCUMENTS AND TRANSFERS ON TRANSFERS OF DWELLING HOUSES TO SHAREHOLDERS EXEMPTION Part E Declaration relating to the residence Declaration to be made and signed by an individual who is an officer of the company duly authorised for such purpose and by the transferee We d e c l a r e t h a t o n 2 0 t h N o v e m b e r 2 0 0 0 a n d u p t o t o d a y . . . . . . . . . . . . . . . . . . . . . . . ............................... occupied the dwelling house in question as his/her/their sole ordinary r e si d en c e a n d t h a t t h e s ai d o c c u p i e r / s i s/ a r e r el a t e d t o t h e t r a n s f e r e e a s f o l l o w s : ........................................................................... Signed for and on behalf of the company by (name of officer): ............................. Signature................................... Name of transferee ................................................. Address ................................................................................................. Identity document number ....................................... Signature ....................................................... Date ............................. Part F Declaration by Notary Public I declare that the declarations in Parts A, B (where applicable), C and D have been signed in my presence after that I, Notary, explained to the signatories the purport thereof and of the Tax on Transfers of Dwelling Houses to Shareholders (Income Tax and Duty on Documents and Transfers) Exemption Order. Signed by (name of Notary Public) ............................................................. Address ........................................................................................................ Signature .............................................. Official Stamp ...................................... Date ...................................