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against any other future payments of tax that the company is required to make on the profits out of which the dividend is paid.

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(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 and to a company in respect of which paragraph (i) of the proviso to article 48(4A)(b) has been applied.
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I N C O M E TAX M A N A G E M E NT

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Art. 43

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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 the Commissioner a payment of tax, if any, in such amount and 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 are chargeable under the provisions of that article or under any other provision of the Income Tax Acts, remit to the Commissioner within fifteen days of the relative transfer a provisional tax payment equivalent to 7% or, where applicable, at the rate provided for in article 5(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:
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Provided that in deeds of emphyteusis or subemphyteusis no account shall be taken of any yearly ground rent or sub-ground rent payable according to the deed:

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Provided further 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, or a transfer of an interest in a partnership, as defined in article 5(1)(a)(v)(a) of the Income Tax Act, the provisional tax payment shall be equivalent to seven percent (7%) of the higher of the market value and the consideration, and in the case of a transfer to which article 5(9A) of the Income Tax Act applies, such payment shall be made within fifteen (15) days from the date the chargeable company ceases to be a member of the group:

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Provided further that in the case of a transfer of value in securities, as provided for in article 5(13)(b)(ii) of the Income Tax Act, or a deemed transfer of an interest in a partnership, as provided for in article 5(1)(a)(v) of the Income Tax Act, the provisional tax payment shall be equivalent to seven percent (7%) of the gains or profits referred to in the said sub-articles, as applicable:

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Provided, moreover, that notwithstanding the foregoing provisions of this paragraph, in the case of a transfer of securities in a property company or of an interest in a property partnership, the provisional tax payment shall be equivalent to such amount as may be prescribed under this Act or under the Income Tax Act but not exceeding thirty-five (35%) percent of the higher of the market value and the consideration for the transfer, and for the purpose 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 Gains or profits from transfer of property.

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Amended by:

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II. 2004.52;

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XIII. 2004.90;

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L.N. 425 of 2007;

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I. 2010.51;

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XV. 2016.29;

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VIII.2020.57;

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XII.2023.39.

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I N C O M E TA X M A N A G E M E N T Act shall be disregarded.

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(2)Provisional tax under this article shall not be payable in respect of: (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 the prescribed form, stating which provision is applicable, and any other relevant documents which the Commissioner may deem necessary:
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Provided that provisional tax shall in any case be paid if article 33 of the Income Tax Act is applicable as a result of claiming the exemption provided for under article 12(1)(u) of the said Act; (b) transfer of property on deeds of partition; (c) transfer of shares in public companies.

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(3)Saving the transfer of property referred to in sub-article
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(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
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(1), if it can be proved that the gain is less than 20% of the consideration or of the value of the donation as the case may be:
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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, or of a transfer of an interest in a partnership, as defined in article 5(1)(a)(v)(a) of the Income Tax Act, the twenty percent (20%) shall be calculated on the higher of the market value and the consideration.

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(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.
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Such tax shall be separate and distinct from that paid or a payable under the provisions of article 42 and he shall not be required to declare any such income, in any return made pursuant to the Income Tax Acts. (b) Any provisional tax paid for the purposes of sub-article

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(1)(b), during or in respect of the year preceding any year of assessment, shall be set off for the purpose of collection against the tax charged in respect of the said year of assessment and if there is an excess after the aforesaid set-off has been made, such excess shall be refunded in accordance with the provisions of article 48. Such provisional tax shall be separate and distinct from that paid or payable under the provisions of article 42 except for persons who have gains or profits from immovable property falling under article 4(1)(a) of the Income Tax Act:
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Provided that the tax paid and referred to in paragraph (b) of this sub-article shall not be set off or refunded as aforesaid unless the person who has paid the tax has declared the relative I N C O M E TAX M A N A G E M E NT gains or profits from the transfer in a return of income furnished in accordance with article 10 for the year of assessment following that during which the gains or profits from the said transfer were derived.

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(5)If any person fails to pay any provisional tax, as the case may be, as provided under this article he shall be chargeable with the tax which should have been so paid and, in addition, with further tax as provided for in article 44(1)(a), and such tax and additional tax shall be recovered from such person in the same manner as other tax assessed and charged upon him.
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(6)For the purposes of sub-article (5) a notice by the Commissioner to any person showing the tax which should have been paid and any additional tax to which he is liable 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 the amount due to be paid to the Commissioner by the said person.
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(7)The powers conferred upon the Commissioner by subarticles (5) and (6) shall be in addition to any right conferred upon him to commence proceedings in respect of any offence under subarticle (8).
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(8)Any person who contravenes or fails to comply with the provisions of this article 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 hundred and sixty euro (1,160) or to imprisonment for any term not exceeding six months or to both such fine and imprisonment, 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 conviction:
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Provided that the Commissioner may compound any offence under this article and may before judgment stay or compound any proceedings thereunder.

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(9)(a) The tax or provisional tax, as the case may be, payable under this article shall be paid in such manner as may be prescribed. (b) Notwithstanding anything that may be provided for in the rules where immovable property or any rights annexed thereto are transferred by means of a public deed the notary publishing such deed shall have the same duties and liability in connection with the collection and payment of the tax or provisional tax, as the case may be, payable on such deed in accordance with this article as are by the Duty on Documents and Transfers Act imposed on notaries publishing such deeds, in connection with the duty chargeable and collected on transfers in accordance with that Act. Any failure by a notary in connection with the collection and payment of tax or provisional tax, as the case may be, 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.
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Additional tax and interest for nonpayment of tax, and enforcement of payment.

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Amended by:

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XXIII. 1995.5;

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IX. 1999.9;

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II. 2003.47;

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II. 2004.53;

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II. 2009.30;

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I. 2010.52;

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XII. 2014.65;

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XV. 2016.30.

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VII.2018.63;

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VII.2019.48;

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XII.2023.40.

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I N C O M E TA X M A N A G E M E N T (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 Courts shall have the same duties with regard to the withholding and payment of the tax or provisional tax, as the case may be, under this article as are under article 66 of the Duty on Documents and Transfers Act imposed on him in relation to the duty leviable on transfers causa mortis under the said Act.

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Art. 44

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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 which such tax remains unpaid shall be added thereto, and the provisions of the Income Tax Acts relating to the collection and recovery of tax shall apply to the collection and recovery of such additional tax; (b) the Commissioner shall serve a demand note upon the person assessed, and if payment is not made within thirty days from the date of the service of such demand note, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in article 40 after two days from the service on the debtor of an intimation, for payment made by means of a judicial act, or as hereafter provided; (c) additional tax charged under this sub-article shall not be deemed to be part of any tax paid or payable for the purposes of articles 59, 73, 76 or 89 of the Income Tax Act, or articles 23, 43, 51 or 52, or any rules made thereunder.
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(2)The Commissioner may, in his discretion, remit wholly or in part any additional tax chargeable under sub-article (1):
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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 the respective periods owing to his absence from Malta or serious sickness or for such other cause as the Minister responsible for 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 date for each calendar month or part thereof during which such tax remains unpaid and the provisions of the Income Tax Acts relating to the collection and recovery of tax shall apply to the collection and recovery of such interest:

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Provided that for any period or part thereof commencing I N C O M E TAX M A N A G E M E NT on or after 1st January 2009, interest shall be calculated at the rate of point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the amount of the said tax:

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Provided further that, for any period or part thereof commencing on or after 1st January 2014, interest shall be calculated at the rate mentioned in the preceding proviso or at such lower rate as the Minister may, from time to time, prescribe by rules and the total interest shall not exceed the amount of the said tax:

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Provided further that when the date by which the tax shall be payable in terms of the relevant provisions of the Income Tax Acts is the 31 August 2022 or a later date, interest shall be charged at the rate of zero point six percent (0.6%) for every month or part thereof during which the tax remains unpaid or at such other rate as the Minister may, from time to time, prescribe by rules and the total interest shall not 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 an assessment made under article 31 shall unless and until it is substituted by another amount by means of a subsequent determination or assessment be deemed to be the tax payable for that year of assessment for the purpose of paragraph (a) regardless of the date when the said determination is made or when the assessment becomes final and conclusive; (c) the Commissioner shall serve a demand note upon the person by whom any tax is due and if payment is not made within thirty days from the date of the service of such demand note, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in article 40 after two days from the service on the debtor of an intimation for payment made by means 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 has determined and directed by notice in writing given to a payor in accordance with rules made pursuant to article 23 that deductions be made from emoluments payable to that person to cover the said tax and if that notice has not been revoked by a notice in writing given by the Commissioner to that person; (b) no interest shall run on any additional tax charged pursuant to the provisions of article 56(12) of the Income Tax Act;

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I N C O M E TA X M A N A G E M E N T (c) no interest shall run on any tax payable in circumstances where a person has taken action under a Mutual Agreement Procedure in terms of an arrangement 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 connection with the adjustment of profits of associated enterprises, for the period between the date when the said action under the Mutual Agreement Procedure is initiated and the date when the issue is concluded under the said procedure; (d) No interest shall run on any tax payable by any person to the Commissioner when the non-payment of that tax renders that person liable to additional tax as provided for in sub-article (1) of this article or in article 73(4) of the 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 accordance with rules issued for this purpose by the Minister responsible for finance.

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(3)No opposition other than that specifically provided for in this Act shall stay the issue or execution of any executive act obtained thereunder or the paying out of the proceeds of any warrant or sale by auction carried out in pursuance thereof.
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(4)The provisions of sub-article (3) shall not prejudice the amount of tax that may be finally determined under the other provisions of the Income Tax Acts.
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Collection of tax after determination of objection or appeal.

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Amended by:

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IX. 1999.10;

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XII.2023.41.

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Art. 45

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45.Where payment of tax is kept in abeyance in accordance with the provisions of article 41 pending the result of a notice of objection or of an appeal, the tax outstanding under the assessment 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 calendar month immediately following that during which service of the notification of tax payable has been made, and if such tax is not paid within such period the provisions of the last preceding article shall apply:
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Provided that nothing in this article or in article 41 shall be c on s t r u e d a s su s p e n d in g th e r u n ni n g o f in t e r e s t o n t h e t a x outstanding as aforesaid and for the purposes of article 44(2A) the said tax shall be treated as tax that was payable by not later than the relevant tax settlement date.

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Payment of tax by persons about to leave Malta.

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Amended by:

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IX. 1999.11.

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Art. 46

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46.(1) If in any particular case, the Commissioner has reason to believe that a person who has been assessed to tax may leave Malta before such tax becomes payable under the provisions of the 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 I N C O M E TAX M A N A G E M E NT be limited in such notice. Such tax shall thereupon be payable at the expiration of the time so limited and shall in default of payment, unless security for payment thereof be given to the satisfaction of the Commissioner, be recovered forthwith in the manner provided by article 44.
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(2)If in any particular case, the Commissioner has reason to believe that tax upon any chargeable 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 such income 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 making such return or the Commissioner is dissatisfied with such return, in such amount as the Commissioner may think reasonable; (c) by notice in writing to the person assessed require that security for the payment of the tax assessed be forthwith given to his satisfaction.
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(3)Notice of any assessment made in accordance with the provisions of sub-article (2) shall be given to the person assessed, and any tax so assessed (in accordance with the provisions of subarticle (2)) shall be payable on demand made in writing under the hand of the Commissioner and shall in default of payment, unless security for the payment thereof be given to the satisfaction of the Commissioner, be recoverable forthwith in the manner provided by article 47.
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(4)Any person who has paid the tax in accordance with a demand made by the Commissioner or who has given security for such payment under sub-article (2) shall have the rights of objection and appeal conferred by articles 33, 35 and 37 and the amount paid by him shall be adjusted in accordance with the result of any such objection or appeal.
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(5)The provisions of sub-article (2) shall not affect the powers conferred upon the Commissioner by articles 30 and 31.
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Art. 47

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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 Magistrates (Malta) in its civil jurisdiction or in the Court of Magistrates (Gozo), also in its civil jurisdiction by the Commissioner in his official name with full costs of suit from the person charged therewith, from the person by whom it is payable or from the person responsible for its deduction as a debt.
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(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, interest or any penalty may be taken during any time from the date on which it becomes due and payable up to eight years from that date or, where an assessment in respect thereof has been made, from the date on which that assessment becomes final and conclusive.
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Suit for tax by Commissioner.

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Amended by:

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IX. 1999.12;

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II. 2004.54;

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IV. 2007.30.

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I N C O M E TA X M A N A G E M E N T

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(3)The running of the period referred to in sub-article (2) shall be interrupted by a demand note served through registered post by the Commissioner or by any judicial act filed by the Commissioner before the expiration of such period demanding the payment of the amount claimed.
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(4)Where the action referred to in sub-articles (2) and (3) has not been taken within the time specified therein, and such time expires on or before the 31st December 2003, then, notwithstanding the provisions of the said sub-articles, action for the payment of the said tax, additional tax, interest or penalty may be taken until the 31st December 2005.
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Assistance in the collection of taxes.

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Added by:

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IV. 2011.62.

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Art. 47A

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47A. (1) The Commissioner shall lend assistance to foreign tax authorities in the collection of revenue claims in accordance with the provisions of applicable arrangements referred to in article 76 of the Income Tax Act where these exist.

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(2)For the purposes of sub-article (1), a notice by the Commissioner to any person showing the amount of a revenue claim by a foreign tax authority to which he is liable for having 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.
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(3)For the purposes of this article, the arrangements in relation to the collection of taxes shall determine the meaning of \"taxes\" and \"revenue claims\".
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PART VIII

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Refunds Repayment of tax.

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Amended by:

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XX. 1996.21;

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V. 1998.7;

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IX. 1999.13;

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II. 2003.48;

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II. 2004.55;

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II. 2007.25;

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IV. 2007.31;

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IX. 2007.7;

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II. 2009.31;

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I. 2010.53;

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IV. 2011.63;

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XII. 2014.66;

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XIII. 2015.123;

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VII.2019.49;

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VIII.2020.58;* XII.2023.42.

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Art. 48

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48.(1) If it be proved to the satisfaction of the Commissioner that any person for any year of assessment has paid tax, by deduction or otherwise, in excess of the amount with which he is properly chargeable, such person shall be entitled to have the amount so paid in excess refunded by the Commissioner. Every claim for repayment under this article should be made within four years from the date on which the assessment in respect of the year of assessment to which it relates becomes final and conclusive:
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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 years from the end of the year of assessment to which the claim relates:

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Provided also that where the claim relates to tax paid for the year of assessment 1999 or any subsequent year of assessment *Applicable as from year of assessment 2021.

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I N C O M E TAX M A N A G E M E NT it shall be made within five years from the relevant tax return date or, where an assessment in respect thereof has been made from the date on which that assessment becomes final and conclusive:

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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 in virtue of any exemption granted by or under any law is not chargeable to tax thereon; and (b) any tax charged on any body of persons under article 56(4) of the Income Tax Act, or under article 27(3) and

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(4); and (c) any tax which a company has deducted or is entitled to deduct from any dividend paid to a collective investment scheme.
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For the purposes of this proviso \"company\" includes a collective investment scheme; and \"dividend\" includes any distribution made by a collective investment scheme. (1A) Notwithstanding the provisions of sub-article (1), in no case shall any refund be made to any person in respect of the year of assessment 1999 or any subsequent year of assessment unless and until such person has filed all tax returns, which are required to be furnished under this Act, in respect of the years of assessment 1999 up to and including the year of assessment preceding the year in which the refund would have been payable but for the application of this sub-article and, in the case of a person who is a payer as defined in the Final Settlement System (FSS) Rules, he has, moreover, submitted all the Payer’s Annual Reconciliation Statements together with the Payee Statements of Earnings in accordance with 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.. (1B) Notwithstanding the provisions of sub-article (1), in no case shall any refund be made under this Act to any person registered for the purpose of the Value Added Tax Act, unless and until such person has filed all tax returns or declarations required to be furnished for the purpose of the Value Added Tax Act in respect of tax periods up to and including the last complete tax period in the year preceding that in which the refund would have been payable but for the application of this sub-article.

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(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 the amount contained in his return, provided he has received notice of 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 to S.L. 372.14.
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I N C O M E TA X M A N A G E M E N T deliver a true and correct return did not proceed from any fraud or wilful act or omission on the part of that person. (2A) Subject to the provisions of sub- sub-article (2B) any tax determined as repayable to a person for a year of assessment under article 31(1) or (2) shall become due or shall be deemed to have become due, as the case may be, in the case of a person to whom article 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 such other 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 fol lowing a return furnished after the relevant tax return date it shall become due or shall be deemed to have become due, as the case may be, on the later 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 in terms 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 payable but for the provisions of the said sub-articles, shall become due or shall be deemed to have become due, as the case may be, on the last day of the sixth (6th) month following that in which the tax returns referred to 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 (2B) any tax, additional tax or interest that may be due by that person 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 the date it becomes due as aforesaid at the rate of one per cent for every month or part thereof for which it remains unpaid:

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Provided that for any period or part thereof commencing on or after 1st January 2009, interest shall be calculated at the rate of point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the amount of the said repayment:

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Provided further that for any period or part thereof commencing on or after 1st January 2014, interest shall be calculated at the rate established by the provisions of article 44(2A) and the total interest shall not exceed the amount of the said repayment:

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Provided further that for any period or part thereof commencing on or after 1 September 2022, interest shall be calculated *Applicable as from year of assessment 2021.

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I N C O M E TAX M A N A G E M E NT at the rate of zero point six percent (0.6%) or at such other rate as may be prescribed, and the total amount of interest shall not exceed the amount of the said repayment. (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 deemed 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 subarticle (7)(a) refer.

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(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 decision as if he were aggrieved by an assessment made upon him:
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Provided that such appeal shall not reopen any question with respect to which a right of appeal under the provisions of article 35 and 37 has lapsed or which has already been decided on appeal.

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(4)(a) A person, in receipt of a dividend paid to him from profits allocated to the foreign income account or any profits distributed by an international trading company, as the case may be, may claim a refund of two-thirds of the Malta tax paid by the company in respect of those profits 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, directly or 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 in Malta, provided that such person or persons are not owned and controlled by, directly or indirectly, or act on behalf of a person or persons ordinarily resident and domiciled in Malta:
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Provided that the conditions set out in paragraphs (i) and (ii) shall not apply in respect of dividends paid by any company registered in Malta to any recipient shareholder who is registered for the purpose of this article 48(4) or article 48(4A). (b) Subject to the provisions of paragraph (a), where profits distributed as aforesaid out of the foreign income account derive from a participating holding or from the disposal of such holding, a claim may be made for a refund of all of the Malta tax paid in respect of those profits:

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Provided that with respect to a claim for refund relative to dividends derived from a participating holding acquired on or after 1 January 2007, the refund contemplated by this paragraph shall only be due when I N C O M E TA X M A N A G E M E N T the conditions set out in either paragraph (i) or paragraph (ii) below are satisfied: (i) where the body of persons in which the participating holding is held satisfies any one of the following conditions, that is to say:

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(1)it is resident or incorporated in a country or territory which forms part of the European Union;
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(2)it is subject to any foreign tax of at least fifteen per cent (15%);
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(3)it does not have more than fifty per cent (50%) of its income derived from passive interest or royalties; (ii) where none of the conditions set out in paragraph (i) are satisfied then both of the following two conditions must be satisfied:
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(1)the equity holding by the company registered in Malta in the body of persons not resident in Malta is not a portfolio investment and for this purpose the holding of shares by a company resident in Malta in a body of persons not resident in Malta which derives more than fifty per cent of its income from portfolio investments shall be deemed to be a portfolio investment; and
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(2)the body of persons not resident in Malta or its passive interest or royalties have been subject to any foreign tax at a rate which is not less than five per cent (5%):
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Provided further that the provisions of the immediately preceding proviso shall, with effect from 1 January 2011, also be applicable to a claim for refund in respect of the Malta tax paid on distributed profits comprised in dividends received from a participating holding 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 by the company to the Commissioner on the profits distributed out of the foreign income account or on any profits derived and distributed by a company while it was an international trading company, as the case may be:

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I N C O M E TAX M A N A G E M E NT Provided that as regards claims made relative to the payment of dividends from profits allocated to the foreign income account and brought to charge to tax in year of assessment 2008 and subsequent years of assessment the expression \"Malta tax paid\" shall, for the purpose of determining the amount of the refund, mean the tax actually paid by the company to the Commissioner on the profits so allocated plus the amount, if any, by which such tax has been reduced by a claim of relief of double taxation under the articles referred to in articles 74(a), (b) and (c) of the Income Tax Act:

\n

Provided further that, notwithstanding the previous proviso, a tax refund payable in terms of this sub-article shall in no case exceed the amount of tax actually paid by the company to the Commissioner on the profits distributed out of the foreign income account or on any profits derived and distributed by a company while it was an international trading company, as the case may be:

\n

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 a company which was an international trading company as at 31 December 2010, the provisions of this article shall continue to apply after 31 December 2010 with respect to the distribution of profits earned by such company while it was an international trading company; (ii) a person resident in Malta, registered for the purpose of making a claim in terms of this sub-article in such manner as may be prescribed, may also claim a tax refund contemplated by this sub-article with respect to dividends paid from profits allocated to the foreign income account when such dividend is paid:

\n

1.

\n

2.

\n
3.by a company which was a company registered in Malta on or after 1 January 2007 but was not resident in Malta before that date; and by any company which has exercised its option in terms of paragraph (i) of the proviso to article 48(4A)(b); and by any other company registered in Malta out of profits derived by the said company in respect of accounting periods which commenced on or after 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 in Malta from profits allocated to its Maltese taxed account or its foreign income account, may claim a refund of six-sevenths of the Advance Company Income Tax pertaining to those profits distributed to I N C O M E TA X M A N A G E M E N T him by way of such dividend, provided that such person is for such purpose registered in such manner as may be prescribed:
\n

Provided that where the dividend is paid out of profits: (i) consisting of passive interest or royalties or of dividends received from a participating holding in a body of persons which does not satisfy the conditions referred to in the proviso to article 12(1)(u) of the Income Tax Act, the rate of refund shall be of five-sevenths of the said Advance Company Income Tax; (ii) allocated to the foreign income account and in respect of which profits the company has claimed relief of double taxation no claim for refund may be made under this sub-article:

\n

Provided further that, notwithstanding the provisions of article 42B(2), a tax refund payable in terms of this sub-article shall in no case exceed the amount of tax actually paid by the company to the Commissioner on the profits distributed out of the Maltese taxed account or foreign income account. (b) During the period from 1 January 2007 to 31 December 2010, any refund contemplated in this subarticle may only be claimed by a person in receipt of a dividend from a company which was a company registered in Malta on or after 1 January 2007 but was not resident in Malta before that date:

\n

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 informed the Commissioner as contemplated in the said paragraphs (1) or (2) below, may also claim a tax refund in terms of this sub-article during the aforementioned period if the conditions of paragraph (a) are satisfied:

\n
1.a company which qualifies as an international trading company and which informs the Commissioner that it has opted to cease to be an international trading company which option shall be approved by an extraordinary resolution of the members of such company;
\n

I N C O M E TAX M A N A G E M E NT 2. a company which has informed the Commissioner that it has opted to be treated as a company which was registered in Malta on or after 1 January 2007 but was not resident in Malta before that date, where such company had, in the three accounting periods immediately preceding that in which it has so informed the Commissioner, in the aggregate more than 50% of its profits allocated to the foreign income account or consisting of income in respect of which the exemption provided by article 12(1)(u) of the Income Tax Act is applicable and has been applied, which option shall be approved by an extraordinary resolution of the members of such company:

\n

Provided that: (aa) where the company was not in existence or was not resident or registered in Malta during the whole of the above mentioned three year period the condition relating to the nature of its income set out in paragraph (2) above shall be determined by reference to the period that such company was in existence, resident or registered in Malta as the case may be; (bb) The Commissioner may, in his discretion, determine that paragraph 2 above applies to a company if he is of the opinion that it is likely that in the foreseeable future more than half of the distributable profits of the company will consist of any or all of the following categories of income:

\n
-profits that will be allocated to the foreign income account;
\n
-profits which are not subject to tax but which would otherwise be allocated to the foreign income account;
\n
-dividends received from an international trading company, including, where applicable, dividends paid after that company has exercised the option under paragraph 1 of proviso (i);
\n

I N C O M E TA X M A N A G E M E N T - income derived from the ownership and, or chartering of any tonnage tax ship as defined in the Merchant Shipping (Taxation and Other Matters Relating to Shipping Organisations) Regulations; - income derived from the ownership and, or chartering of any ship, yacht, boat and any other vessel (in each case not being a tonnage tax ship as defined in the Merchant Shipping (Taxation and Other Matters Relating to Shipping Organisations) Regulations), provided that the aforesaid income is derived by a company which was originally incorporated in terms of and subject to the Merchant Shipping (Shipping Organisations - Private Companies) Regulations, and whose objects were restricted as required under such Regulations;

\n

S.L. 234.43 S.L. 234.43 S.L. 234.42 - S.L. 325.06 income of any company qualifying for benefits in terms of regulation 4, 5 or 6 of the Business Promotion Regulations:

\n

Provided further that a company to which paragraph (2) above applies shall not be entitled to claim a refund in respect of the Malta tax paid on profits allocated to its Maltese taxed account in years of assessment prior to year of assessment 2008. (ii) such company did not derive any of its profits, (even if such profits are not comprised in the said dividend) directly or indirectly, from a trade, business or other activity (hereinafter referred to as \"the new activity\") which is in whole or in part the same or an expansion, replacement or duplication of a trade, business or other activity which was carried on in Malta, prior to the 1 January 2007, by any person (hereinafter referred to as the \"old activity\"); and the foregoing shall be interpreted in the light of the following:

\n
(1)where the human, tangible or intangible resources of the new activity are substantially the same as those which were I N C O M E TAX M A N A G E M E NT utilised by old activity, it shall be presumed, unless the contrary is proved, that the new activity is the same or an expansion, replacement or duplication of an old activity;
\n
(2)where the new activity is carried on directly or indirectly by any person in any way directly or indirectly connected or associated with the persons which carried on the old activity through shareholding, voting or other ownership or controlling rights it shall be presumed, unless the contrary is proved, that the new activity is the same or an expansion, replacement or duplication of an old activity;
\n
(3)a new activity shall not be presumed to be the same or an expansion, replacement or duplication of an old activity merely because the new activity is similar to an old activity because, inter-alia, it provides the same type of goods or services or because the new activity operates in the same market as the old activity and competes with the old activity:
\n

Provided that where the old activity had been carried by a company to which proviso (i) to this paragraph (b) may be applied the new activity shall not be considered in whole or in part the same or an expansion, replacement or duplication of the old activity. (c) For the purpose of paragraph (b)(ii) where the Commissioner is of the opinion that any activity carried out by any company which consists of any part of any administrative, management or other activity carried on by any person as part of his business activities prior to the 1 January 2007, and any other activity forms part of a scheme the sole or main purpose of which is the avoidance of the provisions of paragraph (b) shall be a trade, business or activity which was carried on in Malta, prior to the 1 January 2007, by any person; and for this purpose the word \"scheme\" shall have the meaning assigned to it by article 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 Maltese taxed account by companies which were resident in Malta prior to the 1 January 2007 may only be made in respect of the tax paid on profits derived by the said company in respect of accounting periods which commenced on or after 1 January 2011:

\n

Provided that a claim for refund may be made pursuant to I N C O M E TA X M A N A G E M E N T paragraph (a) in respect of dividends distributed from profits allocated to the Maltese taxed account of companies which were resident in Malta prior to the 1st January, 2007, which profits were derived by those companies in accounting periods which commenced prior to the 1st January, 2011, 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 expiration of the deadline of the 31st December, 2014.

\n
(5)A claim for refund pursuant to sub-article (4) or sub-article (4A) shall be made not later than four years from the date from which the amount of tax is eligible for refund.
\n
(6)The Commissioner shall make payment of the refund under sub-article (4) or sub-article (4A) on being satisfied as to the correctness of the claim made and upon receipt of a certificate issued 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:
\n

Provided that notwithstanding anything contained in the Income Tax Acts the Commissioner shall not make such payment unless any tax due under the investment income provisions in respect of investment income referred to in article 41(a)(viii)(2) or

\n
(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.
\n
(7)(a) Where a claim for refund has been made under the provisions of sub-article (4) or sub-article (4A) in respect of Malta tax paid on distributed profits as properly shown in the relevant dividend certificate, no person shall be entitled to a further refund under those sub-articles or to a refund under any other provisions of the Income Tax Acts in relation to the Malta tax paid on such distributed profits:
\n

Provided that a person entitled to such refund as set out under sub-article (4) in respect of profits distributed by an international trading company shall also be entitled to a refund of the difference between the Malta tax paid by the international trading company and the tax chargeable on such person on such income in accordance with the provisions of this Act:

\n

Provided further that the provisions of the immediately preceding proviso shall during the period 1 January 2011 to 31 December 2014 also apply in the case of any profits distributed by a company which was an international trading company as at 31 December 2010 where such profits were earned by such company while it was an international trading company.

\n

I N C O M E TAX M A N A G E M E NT (b) Where a claim for refund has been made under the provisions of sub-article (4) or sub-article (4A) in respect of Malta tax paid on distributed profits as properly 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 59 from such dividend, shall, when such dividend is included in the chargeable income of any person, including a company receiving the said dividend or a person holding directly or indirectly shares in such company which receives a dividend out of such profits, be set off, for the purposes of collection, only against 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 on distributed profits as properly shown in the relevant dividend certificate, no person shall be entitled to a further refund under the provisions of sub-article (4) or sub-article (4A) in relation to the Malta tax paid on such distributed profits.

\n
(8)A refund due by the Commissioner as aforesaid shall constitute a debt due by the Commissioner to the claimant which shall be payable not later than the fourteenth day following the day on which the refund becomes due and shall be recoverable as such:
\n

Provided that the said period of fourteen (14) days may be extended by another period of twelve (12) months if the Commissioner requires to carry out further verifications for due diligence purposes.

\n
(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 days from the date of receipt of such refund, and where such repayment is not paid as aforesaid interest shall be charged according to the provisions of article 44.
\n
(10)If any person claims a refund in terms of sub-article (4) or sub-article (4A) when that person was not entitled to the said refund such person shall be liable to pay a penalty equal to the 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 so refunded and to additional tax of seven per cent per month or part thereof commencing from the month in which the said refund was paid to him up to the month in which he repaid the tax refunded and any paym en t m ade by th e said person in r esp ect of th e tax repayable by him in terms of this paragraph shall first be applied against any additional tax due thereon:
\n

Provided that the provisions of this sub-article shall not be applicable when the person referred to therein proves that he did not know and could not reasonably have known that he was not entitled to such a tax refund.

\n
(11)The Minister responsible for finance may from time to time make rules in relation to the carrying out of the provisions of this I N C O M E TA X M A N A G E M E N T article.
\n

PART IX

\n

Offences and Penalties General provisions regarding offences.

\n

Amended by:

\n

L.N. 425 of 2007;

\n

XII. 2014.67.

\n

Penalty for failure to comply with notice.

\n

Amended by:

\n

L.N. 425 of 2007;

\n

I. 2008.7.

\n

Art. 49

\n
49.(1) Any person who contravenes or fails to comply with any of the provisions of the Income Tax Acts or of any rules made thereunder shall be guilty of an offence and, unless another punishment is specifically provided by the Income Tax Acts, he shall be liable on conviction to a fine (multa) of not less than twenty-three euro (23) and not exceeding one hundred and sixteen euro (116).
\n
(2)Where a person is, on or after 1st July 1977, found guilty of an offence under any of the provisions of the Income Tax Acts and is not sentenced to imprisonment for that offence the court shall 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 nature or not) he shall be sentenced, in addition to any other punishment, to not less than three days imprisonment or to a fine (multa) of one thousand and five hundred euro (€1500); and a person so found guilty on a second or subsequent occasion, within the period aforesaid, 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 punishment except imprisonment for a longer term.
\n

Art. 50

\n

Every person who without sufficient cause (a) fails to comply with the requirements of a notice, intimation, request or demand note given or made to him 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 answer any 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 default continues after conviction.

\n

Penalty for making incorrect returns, etc.

\n

Amended by:

\n

L.N. 425 of 2007;

\n

IX.2025.47.

\n

Art. 51

\n
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 the liability of any other person or of a partnership; or (c) fails to furnish a return which he is required to furnish in I N C O M E TAX M A N A G E M E NT accordance with the Income Tax Acts, shall be guilty of an offence and shall, on conviction, be liable 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 double the amount of tax which has been undercharged in consequence of such incorrect return, or information, or would have been so undercharged if the return or information had been accepted as correct.
\n
(2)No person shall be liable to any penalty under this article unless the complaint concerning such offence was made in the year of assessment in respect of or during which the offence was committed or within three years after the expiration thereof.
\n
(3)The Commissioner may compound any offence under this article, and may before judgment stay or compound any proceedings thereunder.
\n

Art. 52

\n
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) fails to furnish a return or any other document or statement which he is required to furnish by the Income Tax Acts or omits from a return or any other document or statement made, prepared or submitted for the purposes of or under the Income Tax Acts, any income which should be included therein; or (b) makes any false statement or entry in any return or other document or statement prepared or submitted for the 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 or made 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 other records or falsifies or authorises the falsification of any 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 or contrivance; 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 reasonably expected 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 the course of or in connection with altering, destroying, erasing or concealing any information, records or evidence which he knows or is reasonably expected to know to be relevant for any purpose of this Act, or Penal provisions relating to fraud, etc.
\n

Amended by:

\n

L.N. 425 of 2007;

\n

IV. 2011.64;

\n

IX.2025.48.

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I N C O M E TA X M A N A G E M E N T intending it to be used to commit, or assist in the commission of fraud; or (h) alters, destroys, conceals, covers up, falsifies, or makes a false entry in any record, document, electronic data or tangible object, shall be guilty of an offence, and shall be liable on conviction before a Court of Magistrates sitting as a court of criminal judicature (i) to a fine (multa) not less than seven hundred euro (€700) and not exceeding three thousand five hundred euro (€3,500) in the case of any offence 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 thousand euro (€10,000) for an offence committed under paragraphs (e) to (h), and, in addition, for each offence as above referred to in paragraphs (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 for any term not exceeding six months, or to both such fine and imprisonment.

\n

For the purposes of paragraphs (f) and (g) the term \"article\" includes any program or data held in electronic form.

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(2)The Commissioner may compound any offence under this article, and may before judgment stay or compound any proceedings thereunder.
\n

Special mechanism for out of court settlements.

\n

Added by:

\n

XXX.2025.9.

\n

Art. 52A

\n

Notwithstanding any other provision of this Act or of any other law, upon the conclusion of an agreement made in terms of this article between the Commissioner and any person obliged to make any payment under this Act, hereinafter in this article referred to as the \"debtor\" or the \"taxpayer\", providing for the payment of an additional penalty in addition to any other penalties otherwise provided in this Act, all criminal liability of the debtor for any breach against this Act and for any connected breach in respect of the acts in relation to which the agreement has been entered, shall be extinguished:

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Provided that the additional penalty that such person shall be liable to pay in respect of such breach or breaches shall amount to a minimum of ten thousand euro (€10,000) and a maximum of one million euro (€1,000,000), and shall be imposed in terms of a Schedule to be prescribed by the Minister under this Act, and this in addition to any other amount provided for in this Act for the debtor’s default and quantified according to the final agreement:

\n

Provided further that the agreement to pay any fine or make any other payment under an agreement as provided in this article shall I N C O M E TAX M A N A G E M E NT not extinguish any civil liability to make any payment not covered by the agreement entered into in terms of this article.

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(2)(a) The provisions of this article shall apply where the Commissioner, acting upon the written request of the taxpayer and the notification of adjustment of previous declarations given by the taxpayer, accepts that the adjustments have been correctly made and shall give notice in writing to the taxpayer of a draft agreement in terms of this article to be signed within six (6) months from the date of the request of the taxpayer:
\n

Provided that the said period of six (6) months may be extended by the Commissioner if the Commissioner is satisfied that a longer period is required to determine the extent of the proceeds of the breach. (b) The draft agreement shall include the following: (i) details of the breach or breaches which may include admissions made by the debtor; (ii) an obligation upon the debtor to pay and a quantification of an additional penalty and any other payment due in terms of this Act for the default; (iii) the period allowed for the payment of the amounts due under the agreement; (iv) the consequences of any failure to comply with any terms of the agreement including those provided in articles 187A, 187B and 187C of the Criminal Code; (v) any other terms and conditions imposed by the Commissioner:

\n

Provided that when a draft agreement is notified as aforesaid, an agreement in terms of this sub-article shall be signed and returned to the Commissioner within one (1) month, and if the signed agreement is not received by the Commissioner within the said timeframe, which may be extended by the Commissioner upon reasonable cause being shown by the taxpayer, the provisions of this article shall have no effect:

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Provided further that the amount resulting from this agreement shall constitute an executive title within the meaning of and for the purposes of Title VII of Part I of Book Second of the Code of Organisation and Civil Procedure.

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(3)The period of prescription in respect of the breach and connected breaches shall be suspended during the times established in, or under sub-article (2) and no prosecution shall be instituted in respect of the breach and connected breaches during the time when those I N C O M E TA X M A N A G E M E N T periods are running:
\n

Provided that no prosecution shall be annulled on the ground that it was instituted in violation of this sub-article.

\n
(4)The provisions of this article shall also apply upon the request of the debtor in any case where the debtor has been charged before a court in relation to the breach or breaches and connected breaches, but before final judgment has been given in the case.
\n
(5)Where proceedings are pending before the Court of Magistrates as a court of criminal inquiry and the existence of an agreement is brought to the Court’s notice, the Court shall, upon being satisfied that the breach or breaches mentioned in the charge are breaches to which this article applies or connected breaches, assume the function of a court of criminal judicature and declare the criminal action extinguished in respect of such charges. The Court shall likewise declare the criminal action extinguished if it is a court of criminal judicature whether at first instance or at appeal stage notwithstanding any previous judgment delivered in the cause which has not become final.
\n
(6)In this article: \"agreement\" means and includes a document evidencing an agreement reached between the Commissioner and the debtor in terms of this article and also includes a document or a declaration issued by the Commissioner after the coming into force of this article confirming that the debtor has before the coming into force of this article regularised his position with the Commissioner and has after the coming into force of this article satisfied the requirements thereof by accepting to pay the additional penalty; \"breach\" or \"breaches\" includes any act or acts which constitute a criminal offence; \"Commissioner\" means the Commissioner for Tax and Customs; \"connected breach\" means any act which constitutes a criminal offence committed in pursuance of committing a breach against this Act and shall include: (i) a breach committed, even if at different times, in pursuance of a pre-concerted plan to commit a breach against this Act; (ii) a breach committed with the object of procuring the means for the commission of a breach against this Act;
\n

I N C O M E TAX M A N A G E M E NT (iii) a breach committed with the object of facilitating the commission or completion of a breach against this Act, or of ensuring impunity for such a breach; (iv) a breach which in a single context violates more than one provision of law where at least one provision relates to a breach against this Act; (v) a breach committed through the apparently legitimate use of the proceeds of a breach against this Act:

\n

Provided that a connected breach shall not include any act included in Sub-title IV of Title III of Part II of Book First of the Criminal Code; \"this Act\" includes any subsidiary legislation issued thereunder.

\n

Art. 53

\n
53.Any person who, having or having had any official duty or being or having been employed in the administration of the Income Tax Acts, has or had access to, possession of or control over any documents, information, returns or assessments, relating to the Income Tax Acts, or copies thereof, and who, except as provided in article 4, at any time communicates or attempts to communicate any such information or anything contained in such documents, returns, assessments or copies to any person, shall be guilty of 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 than two thousand and three hundred and twenty-five euro (2,325), or to imprisonment for a period not exceeding six months, or to both such fine (multa) and imprisonment.
\n

Penalty for offences against official secrecy.

\n

Amended by:

\n

L.N. 425 of 2007.

\n

Art. 54

\n
54.(1) The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under the Income Tax Acts shall not relieve any person from liability to payment of any tax for which he is or may be liable.
\n

Tax to be payable notwithstanding any proceedings for penalties, etc.

\n

Amended by:

\n

VIII.2021.11.

\n
(2)The payment of any tax as mentioned in the preceding subarticle may be enforced in terms of article 40(2) of the Act, which shall be applicable mutatis mutandis, in like manner as it had been given in a civil action between the Commissioner and the offender.
\n

Art. 55

\n
55.The provisions of the Income Tax Acts shall not affect any criminal proceedings under any other Act or law.
\n

Art. 56

\n

Deleted by Act IX.2025.49.

\n

Saving for criminal proceedings.

\n

Prosecution to be with the sanction of Commissioner.

\n

Amended by:

\n

VIII.2021.12.

\n

Documents containing evidence of act or omission by warrant holder.

\n

Added by:

\n

V. 1998.4.

\n

Amended by:

\n

V. 2012.46.

\n

I N C O M E TA X M A N A G E M E N T 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.

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(2)Where the Commissioner is of the opinion that any document which has been produced to or obtained by him for any purpose of the Income Tax Acts for the year immediately preceding the year of assessment beginning on 1st January, 1998 and subsequent 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 omission mentioned in article 15(1)(a)(i) of the Accountancy Profession Act he shall, subject to the other provisions of this article, send a copy of that document to the Board.
\n
(3)The Commissioner shall certify any document he sends to the Board in accordance with sub-article (1) hereof as a true copy of the original and shall send to the Board together with any such document a statement giving the reasons for which he has formed his opinion, provided that no reference may be made in any such statement to any facts or circumstances which do not result from the said documents.
\n
(4)The Board may use any document received in accordance with the provisions of this article for the purpose of an enquiry which it may conduct under the said Act but not for any other purpose.
\n
(5)A document sent to the Board and certified as a true copy of the original in accordance with this article shall be admissible as evidence as if it were the original and the production of such document shall not empower any court or authority to request the Commissioner to produce the original of such document or to give evidence on such document except as may be allowed under the other provisions of the Income Tax Acts:
\n

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 handwriting or the signature or the identity 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 purpose for which it has been produced.

\n
(6)Within a reasonable time from the receipt of any document sent to it in accordance with this article, the Board shall inform the Commissioner in writing whether it proposes to use the said document 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 to the Commissioner. *This article was originally added as article 19A.
\n

I N C O M E TAX M A N A G E M E NT

\n
(7)Within a reasonable time from the conclusion of any enquiry in which any documents referred to the Board in accordance with this article have been used, the Board shall deliver to the Commissioner a copy of its decision on that enquiry.
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(8)Nothing in this article shall be construed as (a) empowering the Board to request any information or documents from the Commissioner or to otherwise have access to documents or other information held by the Commissioner; (b) binding the Commissioner to give evidence or explanations in respect of any documents sent by him to the Board; (c) binding the Commissioner to conduct any investigation or make reports on the conduct of any warrant holder.
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(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 or certification referred to in paragraph (a) hereof has been made:
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Provided that a document referred to in this paragraph shall not be deemed to be a document to which this article refers unless it is sent to the Board together with the said report or certification.

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PART X

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Power to make rules 58. The Minister responsible for finance may from time to time make rules generally for carrying out the provisions of this Act and may, in particular, by those rules provide (a) for the form of returns, claims, statements and notices under this Act;

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Power to make rules.

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Amended by:

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II. 2002.81;

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IV. 2011.65;

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III. 2013.54. (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 and delivery of which is authorised or required by or under the Income Tax Acts and of regulations made thereunder, including the making of payments by electronic means under the said Acts and regulations; (c) for the fees to be levied in relation to the issue of tax residency and tax balance certificates, application for a ruling 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.

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I N C O M E TA X M A N A G E M E N T Record of certain exemptions to be laid on Table of the House of Representatives.

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59.A record of any exemption made by the Minister responsible for finance under the provisions of article 12(2) of 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 Representatives as soon as may be after it is made.
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Transitory provision.

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60.(1) The provisions of article 4(4A) of the Income Tax Act as in force immediately before the coming into force of this Act 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 in that sub-article up to the year of assessment 1994.
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(2)The provisions of the Income Tax Act with respect to returns of income and capital assets for the years of assessment up t o th e y ear of a sse ssm en t 19 94, shal l con tin ue in f or ce, a s immediately in force before the coming into force of this Act.
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