               INCOME TAX MANAGEMENT [ CAP. 372.        1
CHAPTER 372
INCOME TAX MANAGEMENT ACT
To regulate the collection of income tax and to provide the administrative machinery for
such collection.
23rd September, 1994
ACT XVIII of 1994 as amended by Acts: XXIII and XXIV of 1995, XX of 1996, XVI of 1997,
V of 1998, I and IX of 1999, VI and IX of 2001, II of 2002 and II of 2003.
ARRANGEMENT OF ACT
Articles
PART I. Preliminary 1-2
PART II. Administration 3-4
PART III. Persons assessable 5-9
PART IV. Returns 10-29
PART V. Assessments 30-33
PART VI. Appeals 34-39
PART VII. Collection 40-47
PART VIII. Refunds 48
PART IX. Offences and penalties 49-57
PART X. Power to make rules 58-60
  2      CAP. 372. ]                INCOME TAX MANAGEMENT
PART I
Preliminary
Short title. 1. The short title of this Act is Income Tax Management Act.
Interpretation.
Cap. 123.
2. In this Act, and in any rules made under this Act, words
and   expressions shall, unless the subject in context otherwise
requires, have the same meaning and the same interpretation as the
meanings and interpretations contained in article 2 of the Income
Tax Act.
 PART II
Administration
Appointment of 
administrative 
authority.
Amended by:
V. 1998.2;
IX. 2001.30.
Cap. 123.
3. (1) The administration of this Act and of the Income Tax
Act,  ( hereinafter collectively referred to as "the Income Tax Acts" )
is vested in the Commissioner who may, in writing and subject to
such limitations as he may think fit, delegate to any person serving
in his department any of the rights, duties, powers and other
functions vested, conferred or imposed upon him by the Income
Tax Acts.
(2) The Commissioner may appoint any person who in his
opinion has the necessary qualifications to assist him in
determining the value of any movable or immovable property for
any of the purposes of the Income Tax Acts and such person shall,
during the term of his appointment, be deemed to be an officer
employed in the administration of the Income Tax Acts and serving
in the Commissioner’s department.
Official secrecy.
Amended by: 
XXIV.1995.362;
XVI. 1997.8;
V. 1998.3;
II. 2003.41.
4. ( 1 ) Except as may be necessary for the purposes of the
Income Tax Acts, or where the Prime Minister otherwise directs,
every person having any official duty or being employed in the
administration of the Income Tax Acts shall regard and deal with
all documents, information, returns and assessments relating to the
Income Tax Acts, or copies thereof, as secret and confidential and
shall make and subscribe before the Court of Appeal a declaration
on oath to that effect in the form prescribed.
( 2 ) No person appointed under or employed in carrying out the
provisions of the Income Tax Acts shall be required to produce in
any court, tribunal, Board or committee of enquiry, any return,
document or assessment or to divulge or communicate to any court,
tribunal, Board or committee of enquiry, any matter or thing
coming under his notice in the performance of his duties under the
Income Tax Acts except as may be necessary for the purpose of
carrying into effect the provisions of the Income Tax Acts, or for
the purpose, or in the course, of a prosecution for any offence
committed against any of the provisions of the Income Tax Acts.
( 3 ) Nothing contained in this article shall prevent the
disclosure to any authorised representative of any other
Government of such information as is required to be disclosed in
terms of -
Cap. 123. ( a ) any arrangement made under article 76 of the Income
               INCOME TAX MANAGEMENT [ CAP. 372.        3
Tax Act including the disclosure of such facts as may
be necessary to enable proper relief to be given in
Malta or elsewhere under any such arrangement or
under article 89 of the Income Tax Act;
( b ) any other arrangement between Malta and other States or
their tax authorities providing for the reciprocal exchange
of information for tax purposes.
( 4 ) The provisions of this article in regard to secrecy shall not
apply to information contained in any return filed in accordance
with articles 10, 21 or 23 and relating to such details of income and
as prescribed under the Income Tax Acts.
( 5 ) ( a ) The Commissioner shall submit to the Speaker of the
House of Representatives a certified statement
showing the details of income declared by each
Member of the House for the purpose of the Income
Tax Acts from the year of assessment in which such
Member first became a Member of the House and for
every subsequent year of assessment up to and
including the year of assessment following the year in
which such Member ceases to be a Member of the
House:
Provided that if a Member having ceased to be a
Member of the House as aforesaid again becomes a
Member of the House, the Commissioner shall also
submit to the Speaker the details of the income in
respect of the period covering the years when such
member ceased to be a Member until he again becomes
a Member of the House.
Cap. 248.
( b ) The Speaker of the House of Representatives shall,
upon a request in writing by any Member of the House
or by the editor responsible for any newspaper
registered under the Press Act, furnish such Member
or editor with the details of income in respect of any
year of assessment declared by any Member of the
House for the purposes of the Income Tax Acts,
provided that the details of income so requested have
been made available to the Speaker under the
provisions of paragraph  ( a )  and that prior to giving
such information the Speaker shall notify such
Member whose details of income are being requested,
with a copy of such request and of the reply being
given.
( 6 ) Notwithstanding anything contained in this article, the
Commissioner may permit the Auditor General of the Government
or any other officer duly authorised in that behalf by the Auditor
General to have such access to any records or documents as may be
necessary for the performance of his official duties. The Auditor
General or any such officer shall be deemed to be a person
employed in the administration of this Act for the purpose of this
article.
  4      CAP. 372. ]                INCOME TAX MANAGEMENT
Cap. 364.
( 7 ) Notwithstanding anything contained in this article, the
Commissioner may make use of the documents, information and
returns relating to the income or items of income of any person for
the purpose of the Duty on Documents and Transfers Act, and may
produce or cause to be produced in court in any proceedings
relating to duties levied or leviable, and for the collection of any
penalty inflicted under such Act, a copy of any particulars
contained in any document of return as aforesaid, certified by him
or by the chairman of the Board of Special Commissioners
constituted under article 34 or by the Registrar of Courts, as the
case may be, to be a correct copy of such particulars:
Provided that the Commissioner may produce or cause to be
produced the original of any such document or return in any case
where it is necessary to prove the handwriting or the signature or
the identity of the person who wrote, made, signed or furnished
such document or return, but only for the purpose of such proof.
(8) Nothing in this article shall prevent the delivery of
documents by the Commissioner in accordance with article 57.
PART III
Persons Assessable
Chargeability of 
agent or person 
residing out of 
Malta.
Cap. 123.
5. ( 1 ) Further to the provisions contained in Part IX of the
Income Tax Act, a person not resident in Malta  ( hereinafter in this
Act referred to as "a non-resident person" )  shall be assessable and
chargeable in the name of his trustee, guardian, tutor, curator or
committee, or of any attorney, factor, agent, receiver, branch or
manager, whether such attorney, factor, agent, receiver, branch or
manager has the receipt of the income or not, in like manner and to
the like amount as such non-resident person would be assessed and
charged to tax in Malta as if he were in the actual receipt of such
income.
A non-resident person shall be assessable and chargeable in
respect of any income arising, whether directly or indirectly,
through or from any attorneyship, factorship, agency, receivership,
branch or management, and shall be so assessable and chargeable in
the name of the attorney, factor, agent, receiver, branch or manager.
( 2 ) Where the registered holder of a share holds such share for
the benefit of another person, the Commissioner shall be entitled to
treat such registered holder as beneficially entitled to such share
except as provided in subarticle  ( 3 ) .
Cap. 330.
Cap. 370.
( 3 ) Where the registered holder of a share is licensed under
article 51A of the Malta Financial Services Authority Act or is
licensed under the Investment Services Act, to carry out activities
within paragraph 4 of the First Schedule to that Act and provides
the Commissioner with a certificate in writing that he holds the
share for the benefit of a person or persons all of whom are not
resident in Malta within the meaning of the Income Tax Acts, the
Commissioner shall not treat the registered holder of the share as
beneficially entitled to it.
( 4 ) A licensed nominee shareholder who issues a false
               INCOME TAX MANAGEMENT [ CAP. 372.        5
certificate to the Commissioner shall be guilty of making a false
statement within the meaning of article 52 ( 1 )( b ) .
Cap. 123.
( 5 ) The master of any ship owned or chartered by a non-
resident person who is chargeable under article 28 of the Income
Tax Act shall  ( though not to the exclusion of any other agent )  be
deemed the agent of such non-resident person for all the purposes
of the Income Tax Acts.
( 6 ) Where a non-resident person carried on business with a
resident person, and it appears to the Commissioner that, owing to
the close connection between the resident person and the non-
resident person and to the substantial control exercised by the non-
resident person over the resident person, the course of business
between those persons can be so arranged and is so arranged that
the business done by the resident person in pursuance of his
connection with the non-resident person produces to the resident
person either no profits or less than the ordinary profits which
might be expected to arise from the business, the non-resident
person shall be assessable and chargeable to tax in the name of the
resident person as if the resident person were an agent of the non-
resident person.
( 7 ) Where it appears to the Commissioner that the true amount
of the gains or profits of any non-resident person chargeable to tax
in the name of a resident person cannot in any individual case be
readily ascertained, the Commissioner may, if he thinks fit, assess
and charge the non-resident person on a fair and reasonable
percentage of the turnover of the business done by the non-resident
person through or with the resident person in whose name he is
chargeable as aforesaid and in such case the provisions of the
Income Tax Acts as to the delivery of returns or particulars by
persons acting on behalf of others shall extend so as to require
returns or particulars to be furnished by the resident person of the
business so done by the non-resident person through or with the
resident person, in the same manner as returns or particulars are to
be delivered by persons acting for incapacitated or non-resident
persons in respect of income to be charged:
Provided that the amount of the percentage shall in each
case be determined having regard to the nature of the business and
shall, when determined by the Commissioner, be subject to an
appeal as provided by articles 35 and 37.
( 8 ) Nothing in this article shall render a non-resident person
chargeable in the name of a broker or general commission agent or
other agent where such broker, general commission agent or agent
is not an authorised person carrying on the regular agency of the
non-resident person, or a person chargeable as if he were an agent
in pursuance of subarticles  ( 5 ) ,  ( 6 )  and  ( 7 ) , in respect of gains or
profits arising from sales or transactions carried out through such a
broker or agent.
( 9 ) The fact that a non-resident person executes sales or carries
out transactions with other non-residents in circumstances which
would make him chargeable in pursuance of subarticles  ( 5 )  and  ( 6 )
in the name of a resident person shall not of itself make him
  6      CAP. 372. ]                INCOME TAX MANAGEMENT
chargeable in respect of gains or profits arising from those sales or
transactions.
( 10 ) Where a non-resident person is chargeable to tax in the
name of any attorney, factor, agent, receiver, branch or manager in
respect of any gains or profits arising from the sale of goods or
produce manufactured or produced out of Malta by the non-resident
person, the person in whose name the non-resident person is so
chargeable may, if he thinks fit, apply to the Commissioner to have
the assessment to tax in respect of those gains or profits made or
amended on the basis of the profits which might reasonably be
expected to have been earned by a merchant or, where the goods
are retailed by or on behalf of the manufacturer or producer, by a
retailer of the goods sold, who had bought from the manufacturer or
producer direct, and, on the proof to the satisfaction of the
Commissioner of the amount of the profits on the basis aforesaid,
the assessment shall be made or amended accordingly.
Cap. 370.
( 11 ) A non-resident person shall not, by virtue of this article, be
assessable or chargeable to tax in the name of an agent or other
representative in respect of gains or profits arising to the non-
resident person resulting from the provision in Malta by the agent
or such other representative of any of the services listed in the First
Schedule to the Investment Services Act, provided that:
( a ) the investment services concerned are carried out in
the ordinary course of such business; and
( b ) the remuneration which the agent or other
representative receives for the provision of investment
services to the non-resident person is at a rate which is
not less than that which is customary for that class of
business, and in the case of an agent or other
representative who provides investment services as
part only of a business, the provisions of paragraphs
( a )  and  ( b )  shall apply as if that part were a separate
business.
( 12 ) For the purposes of subarticle  ( 11 )  an agent or other
representative shall be deemed to have carried out an investment
service on behalf of his principal whether he undertakes the
transaction himself or gives instructions to another person.
( 13 ) The activities of the agent or other representative shall not
affect the residence of the non-resident person for tax purposes.
Acts to be done by 
trustees, etc.
6. The person in whose name a non-resident person is
chargeable, shall be answerable for all matters required to be done
by virtue of the Income Tax Acts for the assessment of the income
of any person for whom he acts and for paying the tax chargeable
thereon.
Manager of 
corporate bodies of 
persons.
7. ( 1 ) The manager or other principal officer of every body of
persons shall be answerable for doing all such acts, matters and
things as are required to be done by virtue of the Income Tax Acts
for the assessment of such body and payment of the tax.
( 2 ) Every such principal officer shall pay the tax out of the
               INCOME TAX MANAGEMENT [ CAP. 372.        7
property of the body of persons. He shall, however, be liable for
payment personally, and jointly and severally with any other person
responsible therefor, if at any time after 1st January, 1979 he had in
his possession or control any property belonging to the body of
persons which could have been used to pay the tax then due.
( 3 ) The liquidator of a company which is being wound up shall
not distribute any of the assets of the company to its shareholders
unless he had made provision, in so far as he is able to do so out of
the assets of the company, for the payment in full of any tax which
he knows of or might reasonably expect to be payable by the
company under the Income Tax Acts and in default, such liquidator
shall be liable personally, and jointly and severally with any other
person responsible therefor, for payment of the tax due.
Lists to be 
prepared by 
representative or 
agent.
8. Every person who in whatever capacity is in receipt of any
money or value being income arising from any of the sources
mentioned in the Income Tax Acts or belonging to any person who
is chargeable in respect thereof, or who would be so chargeable if
he were resident in Malta and not an incapacitated person, shall
whenever required to do so by any notice from the Commissioner,
prepare and deliver within the period mentioned in such notice a
list signed by him containing - 
( a ) a true and correct statement of such income; and
( b ) the name and address of every person to whom the
same shall belong,
and the provisions of the Income Tax Acts with respect to the
failure to deliver lists or particulars in accordance with a notice
from the Commissioner shall apply to any such lists.
Indemnification of 
representative.
9. Every person answerable under the Income Tax Acts for
the payment of tax on behalf of another person may retain out of
any money coming to his hands on behalf of such other person so
much thereof as shall be sufficient to pay such tax, and shall be and
is hereby indemnified against any person whatsoever for all
payments made by him in pursuance and in virtue of the Income
Tax Acts.
PART IV
Returns
Return of income.
Substituted by:
IX. 1999.2.
10. (1) The Commissioner may, by notice in writing, require
any person to furnish him by not later than such date as may be
prescribed with a return of income together with and containing
such particulars, statements, accounts, computations or other
documents as may be necessary to enable such person’s income and
allowable deductions and the tax payable by or repayable to that
person to be readily ascertained in accordance with and for the
purposes of the Income Tax Acts.
(2) The Commissioner may, by means of the notice referred to
in subarticle (1), require any person to include in his return of
income for the year of assessment 1999 and any subsequent year of
assessment a self-assessment, that is to say, a computation
  8      CAP. 372. ]                INCOME TAX MANAGEMENT
showing:
( a ) the chargeable income of that person for the year of
assessment on the basis of the information contained
in the return of income;
( b ) the tax chargeable thereon; and
( c ) the tax payable by or repayable to that person for the
year of assessment, being the difference between the
tax computed under paragraph ( b ) and the aggregate of
the amounts referred to in the following sub-
paragraphs, disregarding any credit, relief or tax paid,
withheld, payable or repayable for any other year of
assessment:
(i) any provisional tax paid and any tax deducted at
source that falls to be set off or that is available
as a credit in accordance with the provisions of
the Income Tax Acts against the tax computed
under paragraph ( b );
Cap. 123.
(ii) any tax credit or relief claimed and due in
accordance with the provisions of Part X of the
Income Tax Act relating to the chargeable
income computed under paragraph ( a ); and
(iii) any other amount paid on account of the tax
chargeable for the year of assessment as
computed under paragraph ( b ).
(3) A self-assessment shall not be construed as being an
assessment for any purpose of the Income Tax Acts and any
reference in the said Acts to an assessment shall not be construed as
or as including a reference to a self-assessment.
(4) If a person required to file a return of income under this
article is a company resident in Malta it shall furnish together with
the return the documents specified in article 19(4).
(5) No return purporting to have been filed in accordance with
the provisions of this article shall be considered to have been so
filed unless it is complete in all material respects, including a self-
assessment when required by the notice referred to in subarticle (1),
and unless it is accompanied by such documents as are required
under the other provisions of this article.
Commissioner may 
request 
information.
Added by:
II. 2003.42.
10A.    The Commissioner may, when and as often as he deems
necessary, give notice in writing to any person to furnish him,
within a reasonable time stated in such notice, not being less than
thirty days, such information as may be necessary in order to
provide information to foreign tax authorities where arrangements
between Malta and the respective State or its tax authorities exist
for the reciprocal exchange of information for tax purposes and
where the information is such that the Commissioner could collect
for the purposes of the Income Tax Acts.
Where notice is not 
received.
Substituted by:
IX. 1999.2.
11. Where any person chargeable with tax has not received the
notice mentioned in article 10(1)in respect of any year of
assessment for which he is so chargeable by such date as may be
               INCOME TAX MANAGEMENT [ CAP. 372.        9
prescribed for the purpose of this article, the provisions of the said
article 10 shall apply to him as if he has been duly served with a
notice under subarticle (1) of that article and, with respect of the
year of assessment 1999 and any subsequent year of assessment,
with a notice under subarticle (2) of that article, and it shall
accordingly be the duty of that person to furnish a return of income
under that article including, when applicable, a self assessment for
that year and to comply with all the other provisions of the said
article.
Election not to 
furnish return. 
Substituted by:
IX.1999.2.
12.  (1) Notwithstanding the provisions of articles 10 and 11,
but without prejudice to the other provisions of this Part, a person
to whom this article applies shall not be required to furnish a return
of income for a year of assessment if he makes an election for that
year under and in accordance with this article.
(2) This article applies to:
( a ) an individual resident in Malta whose total income for
the year of assessment -
Cap. 123.
(i) does not include any income falling under article
4(1)( a ) of the Income Tax Act; and
Cap. 123.
(ii) does not exceed the amount to which a nil rate of
tax applies in terms of the relevant provisions of
article 56(1) of the Income Tax Act;
( b ) an individual resident in Malta whose total income for
the year of assessment consists solely of income that
was subject to deduction at source, including income
subject to a nil rate of deduction, in terms of
regulations made for the purposes of article 23 and
fully reported in a statement or statements of earnings
prepared in accordance with the said regulations and
held in his possession;
( c ) a person who is designated as a person to whom this
article applies by regulations that may be prescribed
under this article.
Cap. 123.
(3) ( a ) When a person has an option in terms of any provision
of the Income Tax Act to disclose or not disclose
income, that income shall not be taken into account for
the purposes of subarticle (2), and if that person makes
an election under this article he shall be deemed for the
purposes of the Income Tax Acts to have opted not to
disclose that income and such income shall
accordingly not form part of his total income.
( b ) When a person makes an election under this article, the
income that he would have been required to disclose
were it not for the provisions of this article shall be
taken into account in determining his total income for
any purpose of the Income Tax Acts.
Cap. 123.
( c ) When a person makes an election under this article and
he is also eligible to make an election for a separate
computation under article 50 of the Income Tax Act,
  10      CAP. 372. ]                INCOME TAX MANAGEMENT
that person shall be deemed to have taken the more
advantageous option under that article according to his
particular circumstances.
( d ) With respect to a married individual living with his or
her spouse references in this article to an individual
shall be construed as references to the responsible
spouse and references to the income or the chargeable
income of an individual shall be construed as
references to the income or the chargeable income of
both spouses.
(4) ( a ) An election under this article shall be made by the
delivery to the Commissioner of a signed declaration
confirming the person’s eligibility to make the election
in terms of this article and complying with the other
provisions of this subarticle.
( b ) An election shall not be deemed to have been made
under this article unless:
(i) it is made by a person to whom this article
applies;
(ii) it is made on the prescribed form and contains
such particulars and is accompanied by such
documents as may be required by that form; and
(iii) it is delivered to the Commissioner by not later
than such date as may be prescribed.
Further returns.
Substituted by:
IX. 1999.2.
13. (1) The Commissioner may when and as often as he thinks
necessary give notice in writing to any person who has filed a
return under article 10 requiring him to furnish, within a reasonable
time stated in such notice, not being less than thirty days, fuller or
further returns respecting any matter as to which a return is
required by the said article.
(2) The Commissioner may give notice in writing to any person
who has made an election under article 12 to make a return of
income and to make a self assessment under article 10 and to
comply with the other provisions of that article within a reasonable
time stated in such notice and not being less than thirty days.
(3) A person who has delivered a return of income may at any
time before an assessment is made under article 31 make such
corrections to or additions to that return as he may consider
appropriate by furnishing a further return in such manner and on
such form as may be prescribed.
(4) When a further return made pursuant to subarticle (3) with
respect to a year of assessment produces a reduction in the tax
payable by or an increase in the tax repayable to that person as
resulting from a previous return, it shall not have any effect for the
purposes of this Act if it is made later than five years from the
expiration of that year of assessment.
(5) A person who has made an election under article 12 with
respect to a year of assessment may at any time within that year of
assessment or within five years from the expiration thereof, but
               INCOME TAX MANAGEMENT [ CAP. 372.        11
before an assessment is made under article 31, furnish the
Commissioner with a return of income including a self-assessment
on such form as may be prescribed.
(6) When a return for a year of assessment is furnished
pursuant to and in accordance with this article it shall be deemed to
be a return of income made under article 10 and shall be read and
construed as one with any other return that may have been so made
for that same year, and any determination made under article 31
shall be revised and replaced as necessary, provided that:
( a ) such return shall not relieve any person of any penalty,
tax, additional tax or interest to which he may have
become liable in accordance with any provision of the
Income Tax Acts;
( b ) a person who has made an election under article 12 and
who submits a return in accordance with subarticle (2) or subarticle
(5) shall not be deemed to have made a default by reason only of
the fact that the return is submitted after the time prescribed for the
purposes of article 10(1).
Power to call for 
returns, books, etc.
Amended by:
II. 2003.43.
Cap. 123.
14. For the purpose of obtaining full information in respect of
any person’s income, the Commissioner may, notwithstanding any
other provision of this Act or of the Income Tax Act, give notice to
such person requiring him within a reasonable time to complete and
deliver to the Commissioner any return specified in such notice
and/or to attend personally or by representative before him and to
produce for examination any books, documents, accounts and
returns  ( including bank statements and passbooks )  which the
Commissioner may deem necessary.
Returns to be 
deemed to be 
furnished by due 
authority.
15. A return, statement or form purporting to be furnished
under the Income Tax Acts by or on behalf of any person shall for
all purposes be deemed to have been furnished by that person or by
his authority, as the case may be, unless the contrary is proved, and
any person signing any such return, statement or form shall be
deemed to be cognizant of all matters therein.
Official 
information.
16. The Commissioner may require any person having an
office or employment, whether paid or otherwise, with the
Government of Malta or with any organisation or other body
whether having a legal personality or not in which the Government
of Malta or any such body as aforesaid have a controlling interest
or over which they have effective control to supply such particulars
in respect of a person or persons specified by him as may be
required for the purposes of the Income Tax Acts and which may be
in the possession of such person having such office or employment:
Provided that no request for particulars shall be made under
this article unless the Commissioner or any officer authorised by
him has reasonable grounds to suspect that the persons named or to
be named in the request have evaded tax:
Provided further that no such person having such office or
employment as aforesaid shall, by virtue of this article, be obliged
to disclose any information in relation to a person in respect of
which such person having such office or employment is under the
  12      CAP. 372. ]                INCOME TAX MANAGEMENT
duty of professional secrecy.
Professional 
secrecy.
17. Without prejudice to the provisions relating to the duty of
professional secrecy, no request for information shall be made
pursuant to any power under the Income Tax Acts from any of the
following licensed persons:
Cap. 371. ( a ) a bank licensed under the Banking Act;
Cap. 290 - 
Repealed.
( b ) an insurance company in respect of life assurance
business which is carried on pursuant to a licence
granted under the Insurance Business Act;
Cap. 370.
Cap. 370.
Cap. 345.
( c ) any person licensed to carry on investment business
under the Investment Services Act;
( d ) a collective investment scheme licensed under the
Investment Services Act;
( e ) a stockbroker licensed under the Malta Stock
Exchange Act,
except solely for the purposes of determining the taxable income of
such licensed person, and in replying to any such request the
licensed person shall not disclose any information in relation to the
affairs of persons with whom the licensed person has or has had a
professional relationship:
Cap. 123.
Provided that nothing in this article shall prejudice the right
of the Commissioner to make a request referred to in article 34 ( 2 )
of the Income Tax Act.
Substitution of 
original returns.
Amended by:
IX. 1999.3.
18. (1) Where any return, statement or form completed and
delivered to the Commissioner for the purposes of the Income Tax
Acts has been lost or destroyed, or has been so defaced or damaged
as to be illegible or otherwise useless, the Commissioner may
require the person by or on whose behalf such return, statement or
form has been completed and delivered to furnish him to the best of
his ability with a duplicate copy of such return, statement or form
or to give such information, particulars or evidence as may be
required in replacement.
( 2 ) Nothing in this article contained shall affect the provisions
of article 30 ( 4 )  and  (5)  or article 31(5) and (6), nor shall the
Commissioner be empowered to require a copy of any return,
statement or form, or the provision of any information, particulars
or evidence in respect of any year of assessment where the raising
of the relative assessment is statute-barred in terms of the
provisions of the said subarticles.
Records to be kept. 
Amended by: 
XX.1996.21.
19. ( 1 ) Every person carrying on a trade, business, profession
or vocation shall keep proper and sufficient records of his income
and expenditure to enable his income and allowable deductions to
be readily ascertained.
( 2 ) The records referred to in subarticle  ( 1 )  shall include:
( a ) proper accounts with respect to - 
( i ) all sums of money received or expended and the
               INCOME TAX MANAGEMENT [ CAP. 372.        13
matters in respect of which the receipt or
expenditure takes place; and
( ii ) all sales, purchases or services rendered, as well
as any other transaction, act or operation
pertaining to the trade, business, profession or
vocation;
( b ) a profit and loss account or equivalent annual
statement;
( c ) a statement of the assets and liabilities as on the date
on which the annual accounts of the trade, business,
profession or vocation are made up or, in the case of a
company, a balance sheet.
( 3 ) Subject to such conditions as he may deem fit to impose,
the Commissioner may exempt any person in respect of any year of
assessment from keeping any record or statement referred to in
subarticle  ( 2 ) .
( 4 ) The records required to be kept under the provisions of this
article shall be supported by such documents as may be appropriate
in the circumstances, including -
Cap. 386.
( a ) in the case of a company resident in Malta, the balance
sheet and profit and loss account, which shall comply
in every respect with the applicable provisions of
articles 167, 168 and 169 of the Companies Act and
notwithstanding any exemption made by that Act or by
any other law, such balance sheet and profit and loss
account shall be accompanied by a report made out by
a certified public auditor as provided by the applicable
provisions of articles 179 and 181 of that Act;
( b ) in the case of a co-operative society, the audited
financial statements of the society, prepared in all
respects as required by the law for the time being in
force regulating co-operative societies and
accompanied by any report which is by any such law
required to accompany the audited financial statements
of the society.
( 5 ) All records required to be kept by any of the provisions of
this article shall be retained for a period of not less than nine years
after the completion of the transactions, acts or operations to which
they relate:
Cap. 386.
Provided that the provisions of this subarticle shall not
apply where effect has been given to the provisions of article 27, or
of article 324 ( 2 )  of the Companies Act.
Certain powers of 
the Commissioner.
Amended by:
XI. 2001.31.
20. ( 1 ) The Commissioner, or any officer authorised by him in
writing shall have full and free access to all business or
professional premises such as offices, factories, workshops,
warehouses, garages and land serving such purposes in order to
observe and record the nature and importance of any business or
professional activity carried on there, and to check the existence of
merchandise and means of production and transport  and shall have
  14      CAP. 372. ]                INCOME TAX MANAGEMENT
full and free access to any property or other asset whose value is
required to be determined for any of the purposes of the Income Tax
Acts to the extent that such access is likely to assist him in determining
the said value but shall not have any power under this article to seize
any item or remove it from the premises:
Provided that the Commissioner or any officer authorised
by him as aforesaid may not seize any notarial act or register, and
may not inspect public wills, the acts of delivery of secret wills and
registers thereof during the life of the testator or testators, without
the permission in writing of such testator or testators:
Provided further that the Commissioner or any officer
authorised by him as aforesaid may not inspect any document or
other record which is protected by the duty of professional secrecy
or listen to any conversation or recording device which is protected
by the same duty.
( 2 ) If, in the exercise of his powers under subarticle  ( 1 ) , the
Commissioner or a person authorised by him as aforesaid, requires
access to premises occupied in whole or in part for the purposes of
habitation, such access shall require the presence of an officer of
the Police of a rank not below that of inspector and shall not take
place between nine in the evening and five in the morning.
Cap. 55.
( 3 ) The Commissioner shall, for the purpose of assessing the
tax under the Income Tax Acts, be entitled to make the application
referred to in article 68 ( 2 )( a )  of the Notarial Profession and
Notarial Archives Act, and the provisions of the said subarticle  ( 2 )
shall apply to such application in so far as applicable.
( 4 ) If any person prevents or obstructs the Commissioner or the
said officer in the execution of his duties, or refuses to comply with
any request made by the Commissioner or by the said officer in
accordance with the provisions of this article, he shall, on
conviction by the Court of Magistrates, sitting as a court of
criminal judicature, be liable to a fine  ( multa )  of not less than
twenty-five liri and not exceeding two hundred liri or to
imprisonment for a term not exceeding six months or to both such
fine and imprisonment.
( 5 ) The powers of investigation under this article shall not be
exercised unless the Commissioner or any officer authorised by
him, has reasonable grounds to suspect that tax is being evaded in
respect of operations carried out by the taxpayer on the premises
referred to in subarticle  ( 1 ) .
Return to be 
delivered by 
employer.
21. ( 1 ) Every employer when required to do so by notice from
the Commissioner shall, within the time limited by the notice,
prepare and deliver for any year a return containing - 
( a ) the names and places of residence of all persons
employed by him;
( b ) the payments and allowances made to those persons in
respect of that employment,
and the provisions of the Income Tax Acts with respect to the
failure to deliver returns or particulars in accordance with a notice
               INCOME TAX MANAGEMENT [ CAP. 372.        15
from the Commissioner shall apply to any such return.
( 2 ) Where the employer is a body of persons, the manager or
other principal officer shall be deemed to be the employer for the
purposes of this article, and any director of a company, or person
engaged in the management of a company, shall be deemed to be a
person employed.
Payment of tax of 
individuals 
employed but not 
domiciled or 
ordinarily resident 
in Malta.
22. ( 1 ) In this article the expression "individual to whom this
article applies" means an individual who is not domiciled in Malta
or who, if so domiciled, is not ordinarily resident therein.
( 2 ) Where any person employs in Malta an individual to whom
this article applies and who is or is likely to be chargeable with tax
under the provisions of the Income Tax Acts, he shall give notice in
writing to the Commissioner not later than three months after the
date of the commencement of such employment, stating the full
name and address of such individual, the date of commencement
and the terms of employment.
( 3 ) Any person ceasing to employ in Malta an individual to
whom this article applies and who is or is likely to be chargeable
with tax under the Income Tax Acts, shall give notice in writing to
the Commissioner not less than one month before such individual
ceases to be employed by him in Malta stating the name and
address of the individual and the expected date of cessation:
Provided that the Commissioner may accept such shorter
notice as he may deem reasonable.
( 4 ) Any person who employs in Malta an individual to whom
this article applies and who is to the knowledge of such person
about to leave or intending to leave Malta on termination of his
employment with such person shall give notice in writing to the
Commissioner of the expected date of departure of such individual.
Such notice shall be given not less than one month before the
expected date of departure:
Provided that the Commissioner may accept such shorter
notice as he may deem reasonable.
( 5 ) Where any person in his capacity as employer of an
individual hereinafter mentioned has in his possession any monies
which whatsoever are or may be payable to or for the benefit of an
individual to whom this article applies and who has ceased or is
about to cease to be employed by such person in Malta, he shall not
without the permission of the Commissioner, notwithstanding the
provisions of any other law, pay any part of such monies to or for
the benefit of such individual until the expiry of thirty days after
the receipt by the Commissioner of such notice as is required to be
given under subarticle  ( 4 ) .
( 6 ) The Commissioner may by notice in writing whenever he
thinks fit declare any person who employs in Malta an individual to
whom this article applies, being an individual who is or is likely to
be chargeable with tax under the Income Tax Acts, to be the
representative taxpayer of such individual, and the person so
declared shall be the representative taxpayer of such individual for
  16      CAP. 372. ]                INCOME TAX MANAGEMENT
the purposes of the Income Tax Acts and may be required to pay
any tax due by such individual from property or monies, including
pension, salary, wages or any remuneration which may be due by
him to such individual and, in default, such payment shall,
notwithstanding the provisions of any other law, be recoverable
from the representative taxpayer so declared by the Commissioner
in the manner provided in Part VII of this Act.
( 7 ) Any notice to be given to the Commissioner in accordance
with the provisions of this article shall be given in addition to any
other notice to be given under article 23.
( 8 ) Where services are rendered in Malta for any person
resident in Malta by an individual who does not have an employer
in Malta the foregoing provisions of this article shall apply to such
resident person in the same manner as if he were the employer of
the said individual. 
Payment by 
deduction at source 
from certain 
income.
Amended by:
V. 1998.5;
IX. 1999.4;
II. 2003.44.
Cap. 123.
23. (1) Where any person pays income chargeable under
article 4(1)( a ), ( b ) or ( d ) of the Income Tax Act, or any other
income as may be prescribed, he shall, at the time of payment
deduct tax therefrom at such amount and in such manner as may be
prescribed under this subarticle or under any other provision of the
Income Tax Acts.
(2) Any tax deducted as required under subarticle (1) shall be
remitted to the Commissioner in such manner and within such
period as may be prescribed.
(3) Deductions of tax made under subarticle (1) shall be set off
for the purposes of collection against the tax chargeable on the
corresponding income for the year of assessment following that
during which the relative deductions are made, or for any other
year of assessment as the Commissioner may elect and any tax
which cannot be set off as aforesaid shall be refunded in
accordance with the provisions of article 48:
Provided that such tax shall not be set off or refunded as
aforesaid unless the person receiving the income has declared that
income in a return of income furnished in accordance with article
10 or made an election under article 12 for the year of assessment
following that during which the deductions were made:
Provided further that the provisions of this subarticle shall
not apply where any tax deducted as aforesaid has not been
remitted to the Commissioner and the Commissioner is satisfied
that such non-remittance was due to any fault or connivance on the
part of the person receiving the income.
(4) If any person fails to deduct tax in accordance with the
provisions of any rules referred to in subarticle (1) or after
deducting such tax, fails to pay it to the Commissioner within the
prescribed period or who otherwise fails to comply with the
provisions of such rules, he shall be liable to the prescribed
additional tax which the Commissioner is empowered to impose
under subarticle (5) hereof and where applicable he shall, in
addition, be chargeable with the tax which should have been
deducted or paid.
               INCOME TAX MANAGEMENT [ CAP. 372.        17
(5) Where the Commissioner has reason to believe that a
person has made a default against the provisions of any rules
referred to under this article he may at any time serve upon such
person a default notice as prescribed showing the tax which should
have been deducted or remitted and/or any additional tax imposed
upon him as aforesaid, sohowever that such additional tax shall not
exceed the amount of two hundred liri for every such default; and
the additional tax so imposed shall be borne by the person to whom
subarticle (4) hereof applies and shall not be recoverable by such
person wholly or in part from the person receiving the income.
(6) If any person feels aggrieved by a default notice served
upon him under subarticle (5) hereof, he may apply to the
Commissioner in writing contesting such notice in the manner and
within such period as may be prescribed.
(7) Where a person has not contested the default notice referred
to in subarticle (5) hereof or where his contestation has been
refused, the Commissioner may, where the payment of the amount
due has not already been made, serve a demand notice on such
person showing the tax which should have been deducted or
remitted and/or any additional tax imposed upon him; and, unless
the contrary is proved, the said notice shall be sufficient evidence
that the amount shown therein is the amount due to be paid to the
Commissioner by the said person:
Provided that a person on whom a demand notice has been
served in consequence of a refusal by the Commissioner in
accordance with this subarticle may appeal such decision in a court
of law within fifteen days from the date of service of such notice.
(8) The Commissioner may in his discretion remit wholly or in
part any additional tax imposed under the provisions of this article.
Cap. 123.
(9) Any additional tax imposed under the provisions of this
article shall not be deemed to be part of any tax paid or payable for
the purposes of any other article of this Act or of any article of the
Income Tax Act or any rules made thereunder.
(10) The powers conferred upon the Commissioner by this
article shall be in addition to any right conferred upon him to
commence proceedings in respect of an offence under the
provisions of subarticle  (13) .
Cap. 318.
(11) Notwithstanding the provisions of any other law, the
demand notice by the Commissioner referred to in subarticle  (7) ,
showing the amount due to be paid under this article, shall
constitute a privileged claim over the assets of the employer
ranking immediately after the wages of employees and claims of
the Director of Social Security for any amounts due by way of
contribution under article 116 of the Social Security Act, and shall
be paid after such wages and claims in preference to all other
claims whether privileged or hypothecary.
  18      CAP. 372. ]                INCOME TAX MANAGEMENT
Cap. 123.
(12) Any person to whom this article applies shall at all times
maintain proper and sufficient records as may be prescribed and
shall, whenever called upon to do so by the Commissioner or by
any public officer authorised by him in writing, produce for
inspection at such person’s premises or as otherwise directed, all
wage sheets, lists and documents and other records whatsoever
relating to any payment made by him of income chargeable under
paragraph ( b ) or ( d ) of subarticle (1) of article 4 of the Income Tax
Act, to any other income as may be prescribed, to any tax deduction
made therefrom or to the accounting of any such payment or tax
deduction:
  Provided that all such records shall be retained for a period
of not less than nine years after the completion of the transactions,
acts or operations to which they relate and shall be made readily
available for examination at any time during such period.
 The aforesaid period of prescription shall in no case
commence before such person has fully complied with the
provisions of this article and of any rules made thereunder.
(13) Any person who contravenes or fails to comply with the
provisions of this article or of any rules referred to in subarticle (1)
shall be liable, on conviction, to a fine  ( multa )  of not less than fifty
liri and not exceeding five hundred liri or to imprisonment for a
term not exceeding six months or to both such fine and
imprisonment, and to a further fine  ( multa )  of not less than two liri
but not exceeding ten liri for every day during which the offence
continues after conviction:
Provided that the Commissioner may compound any
offence under this subarticle and may before judgment stay or
compound any proceedings thereunder:
Provided further that the offence under this subarticle shall
continue to subsist until the offender shall have conformed and
complied with the provisions of this article or of any rules referred
to therein.
Return to be 
furnished of 
income received on 
account of, or paid 
to, other persons.
Amended by:
IX. 1999.5.
24. ( 1 ) Where any person in any capacity whatsoever -
( a ) receives any profits or income to which the provisions
of the Income Tax Acts apply which belong to some
other person; or
( b ) pays to some other person, or to his order, any profits
or income to which the provisions of the Income Tax
Acts apply and which belong to such other person,
then the Commissioner may give notice to such first-named person
requiring him to furnish within the time limited by such notice, not
being less than thirty days from the date of service of such notice, a
return containing -
( i ) a true and correct statement of all such profits
and income; and
( ii ) the name and address of every person to whom
the same belong or are paid:
               INCOME TAX MANAGEMENT [ CAP. 372.        19
Provided that no such person shall, by virtue of this article,
be obliged to disclose any information in relation to another person,
which is covered by the duty of professional secrecy.
( 2 ) A notice under subarticle  ( 1 )  may be given by the
Commissioner so as to apply either generally to persons to whom
such profits or income as are mentioned in that subarticle belong or
are paid or to any particular person or class of persons as aforesaid.
Occupiers to 
furnish return of 
rent payable.
25. The Commissioner may give notice in writing to any
person who is the occupier of any house, property, land or
industrial building requiring him to furnish within a reasonable
time a return containing -
( a ) the name and address of the owner of such house,
property, land or industrial building; and
( b ) a true and correct statement of the rent payable and
any other consideration passing therefor.
Return of lodgers 
and inmates.
26. The Commissioner may give notice in writing to any
person requiring him within the time limited by such notice, not
being less than thirty days from the date of service of such notice,
to furnish a return containing the name of any lodger or inmate who
is at the date of the notice resident in his house, hotel or institution,
and has been so resident, except for temporary absences,
throughout the preceding three months.
Certain 
partnerships.
27. ( 1 ) Where the Commissioner is satisfied that a trade,
business, profession or vocation is carried on by two or more
persons jointly, the income of any partner from the partnership,
otherwise than in a partnership  en commandite  the capital of which
is divided into shares or in a partnership  anonyme,  shall be deemed
to be the share to which he was entitled during the year preceding
the year of assessment in the income of the partnership, such
income being ascertained in accordance with the provisions of the
Income Tax Acts and shall be included in the return of income to be
made by such partner under the provisions of the Income Tax Acts.
( 2 ) The precedent partner, that is to say the partner who of the
partners resident in Malta -
( i ) is first named in the agreement of partnership, or
( ii ) is the precedent acting partner if the partner
named with precedence is not an acting partner,
shall, when required by the Commissioner, make and deliver a
return of the income of the partnership for any year, such income
being ascertained in accordance with the provisions of the Income
Tax Acts, and declare therein the names and addresses of the other
partners in the firm together with the amount of the share of the
said income to which each partner was entitled for that year; and -
( a ) where no partner is resident in Malta, the return shall
be made and delivered by the attorney, agent, manager
or factor of the firm resident in Malta; and
( b ) the provisions of the Income Tax Acts with respect to
the failure to deliver returns or particulars in
  20      CAP. 372. ]                INCOME TAX MANAGEMENT
accordance with a notice from the Commissioner shall
apply to any return required under this article.
( 3 ) Where the Commissioner is not satisfied that a trade,
business, profession or vocation is carried on by two or more
persons jointly, the gains or profits from such trade, business,
profession or vocation shall be deemed to have accrued to such
person entitled to a share of such gains or profits as the
Commissioner may elect, and assessment of tax shall be made
accordingly.
Cap. 123.
( 4 ) Where an assessment has been made in accordance with the
provisions of subarticle  ( 3 ) , the partnership shall not be considered
to be a body of persons for the purposes of article 60 of the Income
Tax Act.
( 5 ) Nothing in this article contained shall prevent the decision
of the Commissioner in the exercise of any discretion given to him
from being questioned in an appeal in accordance with articles 35
and 37.
Signature of 
notices.
Amended by:
II. 2003.45.
28. ( 1 ) Every notice to be given by the Commissioner under
the Income Tax Acts shall be signed by the Commissioner or by
some person or persons from time to time appointed by him for that
purpose, and every such notice, including a receipt for payment of
tax, shall be valid if the signature of the Commissioner or of such
person or persons is duly printed, stamped or written thereon:
Provided that any notice in writing under the provisions of
the Income Tax Acts to any person requiring him to furnish
particulars to the Commissioner, or any notice under the Income
Tax Acts requiring the attendance of any person or witness before
the Commissioner shall be personally signed by the Commissioner
or by any person duly authorised by him.
( 2 ) A signature attached to any notice and purporting to be the
signature of any person so appointed shall be taken to be the
signature of that person until the contrary be shown. 
Service of notices. 29. ( 1 ) Notice may be served on a person either personally or
by being sent by post to his last known business or private address,
and shall in the latter case unless the contrary is proved be deemed
to have been served, in the case of persons resident in Malta, not
later than the third day succeeding the day when posted, and in the
case of persons not so resident, the day succeeding the day on
which the notice would have been received in the ordinary course
by post, and in proving such service it shall be sufficient to prove
that the letter containing the notice was properly addressed and
posted.
Free postage. ( 2 ) All returns, additional information and resulting correspon-
dence and payment of tax under the provisions of the Income Tax
Acts may be sent free of postage to the Commissioner in envelopes
marked "Income Tax".
               INCOME TAX MANAGEMENT [ CAP. 372.        21
Time and date for 
delivery of returns, 
etc., and for 
payments.
Added by:
IX.1999.6.
29A. (1) Any period or date laid down in or under the Income
Tax Acts for the furnishing, delivery or service of a return, notice
or other document to or on the Commissioner or for any payment to
the Commissioner shall be deemed to expire at noon of the last day
of that period or of that date or at such later time as may be
prescribed.
Cap. 252.
(2) When the date on which a return, notice or other document
is to be furnished, delivered or served or deemed to be served or on
which a payment is to be made in terms of any provision of this Act
falls, were it not for the provisions of this subarticle, on a Saturday
or a public holiday as established in the National Holidays and
Other Public Holidays Act, that date shall be deemed to fall on the
first working day, other than a Saturday, following the said
Saturday or public holiday.
PART V
Assessments
Assessments 
relating to years 
preceding the year 
of assessment 
1999.
Substituted by:
IX. 1999.7.
30. (1) Where a person has delivered a return of income for
any year of assessment preceding the year of assessment 1999 the
Commissioner may -
( a ) accept the return and make an assessment accordingly;
( b ) after considering such further returns, books or
evidence, if any, as may be produced before or
obtained by him, refuse to accept the return and to the
best of his judgement determine by order in writing the
amount of the chargeable income of the person and
assess him accordingly.
(2) Where a person has not delivered a return of income for any
year of assessment preceding the year of assessment 1999 and the
Commissioner is of the opinion that such person is liable to pay tax,
he may, according to the best of his judgement, determine the
amount of the chargeable income of such person and assess him
accordingly, but such assessment shall not affect any liability
otherwise incurred by such person by reason of his failure or
neglect to deliver a return.
(3) Where it appears to the Commissioner that a person has not
been assessed or has been assessed at a lesser amount than that
which ought to have been charged for any year of assessment
preceding the year of assessment 1999, the Commissioner may
assess such person at such amount or additional amount as,
according to his judgement, ought to have been charged and the
provisions of subarticle (1)( b ) shall apply to such an assessment.
(4) An assessment for a year of assessment made pursuant to
any of the foregoing provisions of this article shall be made within
that year of assessment or within eight years after the expiration
thereof.
(5) Notwithstanding the provisions of subarticle (4), where a
person has not made to the Commissioner the returns required by
the Income Tax Acts for any year of assessment preceding the year
  22      CAP. 372. ]                INCOME TAX MANAGEMENT
of assessment 1999 or a full and true disclosure of all material facts
necessary for his assessment for any such year and there has been
an avoidance of tax, the Commissioner, where he is of the opinion
that the avoidance of tax is due to fraud or evasion, may at any time
assess such person at such amount or additional amount as
according to his judgement ought to have been charged and take
action for the payment of tax, additional tax and any penalty.
(6) Where in the opinion of the Commissioner there has been
fraud or evasion as aforesaid, such decision shall be subject to
appeal under the provisions of articles 35 and 37.
Assessment, and 
determinations 
relating to the year 
of assessment 1999 
and subsequent 
years.
Substituted by:
IX. 1999.7.
Amended by:
II. 2003.46.
31. (1) Where a person has delivered a return of income under
article 10 that includes a self-assessment for the year of assessment
1999 or any subsequent year of assessment, the Commissioner shall
determine the chargeable income, the tax chargeable thereon and
the tax payable by or repayable to that person for that year of
assessment in the amounts indicated by that person in the self-
assessment, making such arithmetical adjustments as may result to
be necessary on the basis of the information contained in that
return.
(2) Where a person has made an election under article 12 for a
year of assessment the Commissioner shall, on the basis of the
information in his possession, determine the chargeable income,
the tax chargeable thereon and the tax payable by or repayable to
that person for that year of assessment.
(3) Where a person has not delivered a return of income for the
year of assessment 1999 or any subsequent year and has not made
an election under article 12 or, having made such an election has,
after being given notice by the Commissioner to make a return as
provided in article 13, failed to file such a return, and the
Commissioner is of the opinion that such person is liable to pay tax,
he may determine the amount of the tax payable by that person for
that year of assessment on the basis of an estimate made in such
manner and by such method as the Commissioner deems fit without
prejudice to any liability otherwise incurred by that person by
reason of his failure or neglect to deliver a return.
(3A) Where an estimate has been made in the circumstances
mentioned in subarticle (3) and the return has still not been
delivered, the Commissioner may make an assessment under the
provisions of subarticle (5) on the person concerned, without the
need to have previously notified the said person that an enquiry is
being conducted into his tax declarations and liabilities.
(4) The Commissioner may make such enquiries and
verifications as he deems fit with respect to any tax payable by or
repayable to a person and may make such adjustments to a
determination made under the other provisions of this article as
may be agreed upon in writing with that person or as may be
required in accordance with article 13(6).
(5) Where it appears to the Commissioner that the tax payable
by a person for the year of assessment 1999 or any subsequent year
of assessment has been determined at a lesser amount than that
               INCOME TAX MANAGEMENT [ CAP. 372.        23
which ought to have been charged, the Commissioner may after
considering such further returns, books or evidence, if any, as may
be produced before or obtained by him, to the best of his judgement
make an assessment of the chargeable income of that person, the
tax chargeable thereon and the tax payable by or repayable to that
person for that year of assessment, and where the Commissioner
after having made an assessment is of the opinion that any tax so
assessed has been assessed at a lesser amount than that which ought
to have been charged he may, in the same manner, make an
additional assessment or assessments.
(6) An assessment or additional assessment for a year of
assessment under subarticle (5) shall be made not earlier than the
time prescribed under article 10(1) for the submission of the return
of income for that year and not later than five years from the end of
the year in which a return of income or a further return for that year
was furnished or in which an election under article 12 for that year
was made.
(7) Notwithstanding the provisions of subarticle (6) where a
person:
( a ) has furnished the Commissioner with a return or
returns and has not made therein a full disclosure of all
material facts relevant to the determination of his
income and allowable deductions; or
( b ) for the purpose of avoiding tax or through gross or
wilful neglect has furnished the Commissioner with a
return which is incorrect or misleading in any material
respect,
an assessment or an additional assessment under subarticle (5) may
be made at any time after the time laid down in accordance with
this Act for the submission of the return of income for that year.
(8) A decision on the existence of any circumstance that
warrants the application of the provisions of subarticle (7) shall be
subject to appeal under the provisions of articles 35 and 37.
(9) A determination made pursuant to subarticle (1), (2) or (3)
shall not be construed as being an assessment for any of the
purposes of the Income Tax Acts.
Assessment and 
payment of tax in 
foreign currency.
Added by:
IX. 1999.7.
31A. The tax chargeable on the income of a company shall be
declared, determined, assessed and paid in the currency (or where
applicable, in currencies  pro rata ) in which its share capital is
denominated and any refunds and repayments made in accordance
with the provisions of the Income Tax Acts in respect of such tax
shall be made in the same currency (or, where applicable, in
currencies  pro rata ) in which such tax was paid.
Cancellation of 
assessments.
Amended by:
XXIII.1995.2;
I. 1999.2;
II. 2002.80.
32. ( 1 ) The Commissioner may for the purposes of the Income
Tax Acts cancel any assessment raised by him, and such
cancellation shall be without prejudice to the raising of any
assessment required to be raised under this Act in replacement of
the assessment so cancelled which shall be deemed not to have
been raised.
  24      CAP. 372. ]                INCOME TAX MANAGEMENT
( 2 ) Nothing in this article contained shall empower the
Commissioner to cancel or raise any assessment for any year where
such cancellation or raising of any assessment would involve the
opening of any matter which has been determined on appeal for that
year.
( 3 ) Notwithstanding any other provisions of the Income Tax
Acts where more than eight years have elapsed since the expiration
of the year of assessment to which an assessment raised by the
Commissioner before 1st January, 1992 refers and such assessment
is still not final and conclusive in terms of article 38, and it appears
to the Commissioner that such assessment may be invalid or void
because of any mistake, defect or omission by the Commissioner in
making such assessment or in the notice thereof, the Commissioner
may within ten years from 1st January 1992 or within two years
from the date the taxpayer applies to the Commissioner in writing
indicating as a further ground of objection such mistake, defect or
omission raise a new assessment in terms of article 30 for the year
of assessment in question and the provisions of the Income Tax
Acts as to notice of assessment, appeal and other proceedings under
the Income Tax Acts shall apply to such an assessment and to the
tax charged thereon:
Provided that:
(i) the provisions of this subarticle shall similarly
apply to those assessments which have been
raised by the Commissioner on 1st January 1992
or any subsequent date other than assessments
raised under article 31 of the Act; and
(ii) where a new assessment in terms of article 30
and to which this subarticle or paragraph (i) of
this proviso  refers has not been raised by the
Commissioner within the period referred to in
this subarticle, the Commissioner may at any
time raise a new assessment on the taxpayer on
all or any part of the chargeable income of the
taxpayer as declared by him for the year of
assessment in question upon which no valid
assessment has been raised; and except for the
provisions of article 30(4), the provisions of the
Income Tax Acts as to notice of assessment,
appeal and other proceedings under the Income
Tax Acts shall apply to such assessment and to
any tax chargeable thereunder.
Power of the 
Commissioner to 
revise assessment 
in case of 
objection.
Amended by:
XXIII.1995.3; 
XX.1996.21.
33. ( 1 ) The Commissioner shall cause to be served personally
on or sent by registered post to each person assessed to tax a notice
addressed to him at his usual place of abode or business, stating the
amount of his chargeable income and the amount of tax payable by
him and informing him of his rights under the provisions of
subarticle  ( 2 ) .
( 2 ) If any person disputes the assessment he may apply to the
Commissioner, by notice of objection in writing, to review and to
revise the assessment made upon him. Such application shall state
               INCOME TAX MANAGEMENT [ CAP. 372.        25
precisely the grounds of his objection to the assessment and shall
be made within thirty days from the date of the service of the notice
of assessment:
Provided that the Commissioner, upon being satisfied that
owing to absence from Malta, sickness or other reasonable cause,
the person disputing the assessment was prevented from making the
application within such period, shall extend the period as may be
reasonable in the circumstances:
Provided also that no such notice may be validly entered
against any assessment unless -
( a ) the return for the respective year of assessment has
been filed in terms of articles 10 and 11 before the
notice is given to the Commissioner;
Cap. 123. 
( b ) the tax not in dispute for the said year of assessment
has been paid in full before the time limit set out in
article 42 ( 1 )  where the main income of the person for
the year immediately preceding the said year of
assessment is derived from sources other than those
falling under article 4 ( 1 )( b )  and  ( d )  of the Income Tax
Act which are subject to deduction of tax under the
PAYE rules:
Provided further that where any person has already
delivered any notice under this article against any assessment and
such assessment is still not final and conclusive in terms of article
38 he shall comply with the preceding proviso hereto by the 28th
June, 1996, otherwise the notice given will be rejected and the
assessment objected to will become final and conclusive on such
date.
( 3 ) On receipt of the notice of objection referred to in
subarticle  ( 2 ) , the Commissioner may require the person giving the
notice of objection to furnish such particulars or information as the
Commissioner may deem necessary with respect to the income of
the person assessed and to produce all books or other documents in
his custody or under his control relating to such income, and may
summon any person who, he thinks, is able to give evidence
respecting the assessment to attend before him and produce all
books or other documents in his custody or under his control and
may examine such person on oath or otherwise:
Provided that the clerk, agent, employee or other person
confidentially employed in the affairs of the person to be charged
and the parents, spouse or children of such person shall not be
examined except on the request of the assessee:
Provided further that except at the request of the assessee,
no person shall be examined in relation to any information
concerning the assessee in respect of which the said person is under
the duty of professional secrecy.
( 4 ) In the event of any person assessed, who has objected to an
assessment made upon him, agreeing with the Commissioner as to
the amount at which he is liable to be assessed, the assessment shall
be amended accordingly, and notice of the tax payable shall be
  26      CAP. 372. ]                INCOME TAX MANAGEMENT
served upon such person.
( 5 ) If no agreement is reached the Commissioner shall
determine the tax by order in writing:
Provided always that in the event of any person who, under
the provisions of subarticle  ( 2 ) , has applied to the Commissioner
for a revision of the assessment made upon him, failing to agree
with the Commissioner as to the amount at which he is liable to be
assessed, his right of appeal under the provisions of this Act,
against the assessment made upon him, shall remain unimpaired.
PART VI
Appeals
Establishment of 
Board of Special 
Commissioners.
34. ( 1 ) There shall be a Board of Special Commissioners,
hereinafter referred to as "the Board", for the purpose of hearing
and determining appeals in accordance with the provisions of
article 35. The Board shall consist of a chairman, who shall be one
of a panel of persons appointed by the President of Malta to serve
as special commissioner in that capacity, and of two other special
commissioners who shall be two of a panel of persons appointed as
aforesaid to serve in such other capacity, and who shall serve on the
Board in accordance with such distribution of duties, including
provision for inability to serve and other circumstances, as the
Minister responsible for finance may establish.
( 2 ) A person shall be disqualified from being appointed or
continuing to be a special commissioner as long as he is a member
of the House of Representatives.
( 3 ) Every special commissioner shall, before entering upon his
office, make and subscribe a declaration on oath in the form
prescribed to that effect, before the Court of Appeal.
( 4 ) Every special commissioner shall hold office during the
President of Malta’s pleasure.
( 5 ) The President of Malta may, without assigning any reason,
revoke the appointment of any special commissioner and he may
appoint new special commissioners whenever necessary.
( 6 ) The Commissioner shall publish within a reasonable time
all decisions of the Board on points of law, giving the facts of the
appeal and the arguments.
( 7 ) The Board shall have the power to summon any person to
give evidence or to produce books or other documents before it and
the chairman of the Board or the member acting as chairman at a
meeting of the Board, shall have power to administer an oath to any
person appearing before the Board:
Provided that - 
( i ) the clerk, agent, employee or other person
confidentially employed in the affairs of the
appellant and the parent, spouse or children of
such appellant shall not be called to give
evidence or to be examined except on the
               INCOME TAX MANAGEMENT [ CAP. 372.        27
request of the appellant;
( ii ) any person, other than the Commissioner, who
has or has had any official duty, or is or has been
employed, in the administration of the Income
Tax Acts, shall not be called to give evidence or
to be examined in connection with any official
matter concerning the assessment under appeal
except on the request of the Commissioner;
( iii ) except at the request of the appellant, no person
shall be examined in relation to any information
concerning the appellant in respect of which the
said person is under the duty of professional
secrecy.
( 8 ) The special commissioners shall receive such remuneration
as the President of Malta may determine.
( 9 ) The special commissioners shall not be personally liable for
any act or default of the Board done or omitted to be done in good
faith in the course of the operations of the Board.
( 10 ) The Minister responsible for finance may make rules
governing appeals to the Board of Special Commissioners and,
without prejudice to the generality of the foregoing, may make
rules - 
( a ) prescribing the manner in which an appeal shall be
made to the Board and the fees to be paid in respect of
any such appeal;
( b ) prescribing the procedure to be adopted by the Board
in hearing an appeal and the records to be kept by the
Board;
( c ) prescribing the manner in which the Board shall be
convened and the places where and the times at which
the Board shall hold sittings;
( d ) prescribing a scale of costs; and
( e ) generally for the better carrying out of the provisions
of this Part of this Act relating to the Board of Special
Commissioners.
Appeal to special 
commissioners.
35. ( 1 ) Any person who, being aggrieved by an assessment
made upon him, has failed to agree with the Commissioner in the
manner provided in article 33 ( 4 )  may enter within thirty days after
the date of service upon him of notice of the refusal of the
Commissioner to amend the assessment as desired, an appeal
against such assessment to the Board of Special Commissioners:
Provided that no such appeal may be validly entered against
any assessment unless payment of the amount of the tax which is
not in dispute has first been made.
( 2 ) Every person appealing shall appear before the Board either
in person or by agent on the day and at the time fixed for the
hearing of the appeal:
Provided always that if it be proved to the satisfaction of
  28      CAP. 372. ]                INCOME TAX MANAGEMENT
the Board that owing to absence from Malta, sickness or other
reasonable cause, any person is prevented from attending at the
hearing of his appeal on the day and at the time fixed for that
purpose, the Board may postpone the hearing of such appeal for
such reasonable time as it thinks necessary for the attendance of the
appellant.
( 3 ) The onus of proving that the assessment complained of is
excessive shall be on the appellant.
( 4 ) Subject to the provisions of subarticle  ( 3 ) , the Board shall
confirm, reduce, increase or annul the assessment or make such
order thereon as to it may seem fit. Notice of the Board's decision,
the date thereof, and of any amendments to the assessment shall be
sent to the Commissioner who shall cause a copy thereof to be
served either personally on, or by registered post to, the person
appealing together with a notice informing such person of his rights
under the provisions of article 37.
( 5 ) No appeal shall lie from the decision of the Board except on
a question of law only.
( 6 ) An appeal to the Board made by a taxpayer or on his behalf
cannot be withdrawn or discontinued except with the consent of the
Commissioner.
( 7 ) The Board may order the correction of any arithmetical
error incurred in any of its decisions on an application served on
the other party and filed, in the case of the Commissioner, within
ten days after the date of the decision and, in the case of the
taxpayer, within ten days after the service upon him of such
decision.
Certain provisions 
to be followed in 
the hearing of 
appeals.
36. The following provisions shall have effect for the purposes
of any appeal made under article 35:
( a ) the Board shall summarily reject any appeal before it
for any year of assessment and confirm the assessment
complained of unless prima facie proof is brought
before it that, by the date on which the appeal was
entered, appellant had filed under articles 10 and 11 a
return of his income chargeable for the said year of
assessment;
Cap. 123.
( b ) where the assessment complained of has been raised
by the Commissioner in accordance with the
provisions of subarticle  ( 2 )( b ) , or of article 30 ( 3 ) , or of
article 31 ( 1 )  and the dispute before the Board includes
a dispute concerning any income arising from sources
referred to in article 4 ( 1 )( a )  of the Income Tax Act, no
evidence shall be considered by the Board as sufficient
to warrant any change in the assessment concerning
that income unless the person appealing against the
commissioners’ decision has, not later than the
thirtieth day after that fixed for the first hearing of the
appeal, delivered to the Commissioner the records
required to be kept by article 19 and the other
documents required by that article to support or
               INCOME TAX MANAGEMENT [ CAP. 372.        29
accompany such records, and unless he subsequently
confirms such records and documents on oath before
the Board;
( c ) the Commissioner may at any time during the hearing
of an appeal require a declaration by the Board as to
whether the appeal should be rejected and the
assessment complained of confirmed in accordance
with the provisions of paragraph  ( a )  or  ( b ) .
Appeals to the 
Court of Appeal 
(Inferior 
Jurisdiction).
Amended by:
VI. 2001.25.
37. ( 1 ) Any person who, having appealed to the Board feels
aggrieved by its decision, may appeal against the decision, on a
question of law only, to the Court of Appeal (Inferior Jurisdiction)
by an application filed within thirty days from the date of service
upon him of the decision of the Board. 
( 2 ) The Commissioner may, if he is dissatisfied with the
decision of the Board, appeal against the decision, on a question of
law only, to the Court of Appeal (Inferior Jurisdiction) by an
application filed within thirty days from the date of the Board’s
decision.
( 3 ) Unless rules made hereunder provide a longer period, seven
clear days’ notice shall be given to the parties of the date fixed for
the hearing of the appeal.
( 4 ) The court may confirm, reduce, increase or annul the
assessment or make such orders thereon as it may deem fit.
( 5 ) Notice of the amount of tax payable under the assessment
as determined by the court shall be served by the Commissioner,
either personally on, or by registered post to, the other party.
( 6 ) The Commissioner shall publish within a reasonable time
all decisions of the court giving the facts of the appeal and the
arguments.
( 7 ) The cost of the appeal shall be in the discretion of the Court
of Appeal (Inferior Jurisdiction) and shall be a sum fixed by the
registrar.
Cap. 12.
(8) The Minister responsible for justice may by regulations
under this subarticle establish the fees payable in the registry of the
courts in relation to the filing of judicial acts in connection with an
appeal to the Court of Appeal (Inferior Jurisdiction) under this
article:
Provided that until such fees have been so established by
the Minister, the fees contained in Schedule A to the Code of
Organization and Civil Procedure shall apply.
Assessments or 
amended 
assessments to be 
final.
Cap. 123.
38. Where no valid objection or appeal has been lodged within
the time limited by this Part against an assessment as regards the
amount of the chargeable income assessed thereby or the tax rebate
granted in terms of article 57 of the Income Tax Act, or where the
amount of the chargeable income or tax rebate has been agreed to
under article 33 ( 4 ) , or where the appeal has been withdrawn or
discontinued, or where the amount of such chargeable income or
tax rebate has been determined on objection or appeal, the
  30      CAP. 372. ]                INCOME TAX MANAGEMENT
assessment as made or agreed to or determined on appeal, as the
case may be, shall be final and conclusive for all purposes of the
Income Tax Acts as regards the amount of such chargeable income
or tax rebate:
Provided that nothing in this Part shall prevent the
Commissioner from making any refund under the provisions of
article 48 or any assessment or additional assessment for any year
of assessment which does not involve reopening of any matter
which has been determined on appeal for the year.
Errors, etc., in 
assessments and 
notices.
39. ( 1 ) No assessment, warrant or other proceeding purporting
to be made in accordance with the provisions of the Income Tax
Acts shall be quashed, or deemed to be void or voidable, for want
of form, or be affected by the reason of a mistake, defect or
omission therein, if the same is in substance and effect in
conformity with or according to the intent and meaning of the
Income Tax Acts or any Act amending the same, and if the person
assessed or intended to be assessed or affected thereby is
designated therein according to the common intent and
understanding.
( 2 ) An assessment shall not be impeached or affected -
( a ) by reason of a mistake therein as to - 
( i ) the name or surname of a person liable; or
( ii ) the description of any income; or
( iii ) the amount of tax charged;
( b ) by reason of any variance between the assessment and
the notice thereof:
Provided that in cases of assessment, the notice thereof
shall be duly served on the person intended to be charged and such
notice shall contain, in substance and effect, the particulars on
which the assessment is made.
( 3 ) In the case of a body of persons it shall be sufficient for the
purposes of the Income Tax Acts if only the name of the body of
persons appears on any notice issued thereunder by or on behalf of
the Commissioner.
( 4 ) Where any appeal has been entered from any assessment
raised by the Commissioner and such assessment is by final
decision or judgment declared invalid or void, the Commissioner
may, within one year of the final decision or judgment as the case
may be, where a new assessment cannot be issued under any other
provision of the Income Tax Acts, raise a new assessment on the
taxpayer on all or any part of the chargeable income of the taxpayer
as declared by the taxpayer for the year of assessment in question
upon which no valid assessment has been raised; and the provisions
of the Income Tax Acts as to notice of assessment, appeal and other
proceedings under the Income Tax Acts shall apply to such
assessment and to any tax chargeable thereunder.
PART VII
               INCOME TAX MANAGEMENT [ CAP. 372.        31
Collection
Executive title.
Amended by: 
XXIII.1995.4;
V. 1998.6.
Cap. 12.
40. ( 1 ) The following shall constitute an executive title within
the meaning and for the purposes of Title VII of Part 1 of Book
Second of the Code of Organization and Civil Procedure, namely:
Cap. 123.
( a ) the notice referred to in article 73 ( 4 )( c )  of the Income
Tax Act;
( b ) the notice referred to in article 23 (7) ;
( c ) the final and conclusive assessment referred to in
article 38;
( d ) the notice referred to in article 42 (6) ;
( e ) the notice referred to in article 46 ( 1 )  and the notice of
assessment and demand in writing by the
Commissioner referred to in article 46 ( 3 ) :
Provided that except in the cases referred to in paragraph
( e ) , the procedure laid down in article 44 ( 1 )( b )  shall be followed in
all cases before payment is enforced in virtue of such title.
( 2 ) Where in accordance with the provisions of article 44 ( 1 )( b ) ,
a payment is enforceable against a body of persons in virtue of an
executive title, the Commissioner may, without the need of any
other act, proceed with such enforcement against every officer
thereof who is personally liable therefor in terms of article 7 or of
any rules made thereunder.
Procedure in cases 
where objection or 
appeal is pending.
41. ( 1 ) Where notice of objection or appeal against an
assessment has been given, the Commissioner may, in his
discretion, keep in abeyance the collection of not less than ninety
per cent of that part of the tax assessed thereunder which is in
dispute.
( 2 ) This article shall not apply to the tax deductible in
accordance with the provisions of article 23 and to the tax payable
in accordance with the provisions of article 42 ( 2 ) .
Time within which 
payment is to be 
made. 
Amended by: 
XX.1996.21;
IX. 1999.8.
42. ( 1 ) Tax due for any year of assessment preceding the year
of assessment 1999 shall be payable within the period ending on
the last day of the first calendar month immediately following that
during which service has been made of a notice of assessment
under article 33.
(1A) Tax chargeable for the year of assessment 1999 or any
subsequent year of assessment shall be due and payable by not later
than such date, being a date not earlier than the tax return date as
determined in accordance with article 10, during that year, in the
Income Tax Acts referred to as the "tax settlement date", as may be
prescribed.
( 2 ) Notwithstanding anything contained in subarticle  ( 1 )  and
(1A) , provisional tax shall be paid to the Commissioner in the year
immediately preceding the year of assessment by every person in
respect of his liability for the year of assessment in such amount
and in such manner and on such date as may be prescribed:
  32      CAP. 372. ]                INCOME TAX MANAGEMENT
Provided that the provisions of this subarticle shall not
apply to the income of any body of persons arising from activities
relating or ancillary to banking, sound or television broadcasting,
film renting or insurance  ( excluding commissions derived from the
sale of insurance by bodies of persons residing in Malta )  in respect
of the liability of such body of persons for any year of assessment
preceding the year of assessment 1990.
( 3 ) Apart from any payment of provisional tax which may be
due under the provisions of subarticle  ( 2 )  -
( a ) every person shall make payments to be determined by
the Commissioner on account of the said person’s
outstanding liability to tax for any year of assessment
in such amount and in such manner and on such date as
may be prescribed; and
Cap. 123.
( b ) subject to the provisions of paragraph ( c ), every
provisional taxpayer shall, not later than the 30th June
of each year, make a payment in respect of his tax
liability for the year of assessment commencing on the
1st January of that year in an amount equivalent to the
excess, if any, of the aggregate of the tax chargeable in
respect of his income for the year immediately
preceding that year of assessment over the aggregate
of the provisional tax paid by him in respect of that
year, any double taxation relief to which such person
may be entitled in respect of the said year of
assessment and any tax deducted at source under the
provisions of articles 59 and 73 of the Income Tax Act,
from such income:
Provided that the provisions of this paragraph
shall not apply to the income of any body of persons
referred to in the proviso to subarticle  ( 2 )  for any year
of assessment preceding the year of assessment 1989;
( c ) every person required to make a self assessment in
accordance with article 10(2), including any person to
whom article 12 applies but who does not make an
election under that article for that year, shall, by not
later than the tax settlement date, pay the amount, if
any, that is required to be determined in that self-
assessment as the amount of tax payable by that person
for that year of assessment;
( d ) notwithstanding any other provision contained in this
Act or in any other law no person may set off against
the tax payable for a year of assessment in accordance
with paragraph ( c ) any amount whatsoever, including
any amount repayable to him or due to him as a credit
under the Income Tax Acts for any other year of
assessment;
( e ) for the purposes of paragraph ( b ) "provisional
taxpayer" means any person, including a company,
who derives any income or to whom any income
accrues which is not emoluments.
               INCOME TAX MANAGEMENT [ CAP. 372.        33
Cap. 123.
(4) ( a ) Payment of tax due by individuals in terms of article
90A(7)( b ) of the Income Tax Act shall be made by not
later than:
(i) the 30th May of the relevant year in respect of
the income arising during the period January to
April of the same year;
(ii) the 30th September of the relevant year in
respect of the income arising during the period
May to August of the same year; and
(iii) the 15th February of the year following the
relevant year in respect of the income arising
during the period January to December of the
relevant year after deducting the payments made
in terms of subparagraphs (i) and (ii). This
payment shall be accompanied by a statement of
accounts indicating the taxable net profits for the
relevant year.
( b ) For the purposes of paragraph ( a ) -
"relevant year" means the year during which the
income from part-time work is earned; and
"taxable net profit" is the result of all incomes and
expenses in accordance with established accounting
practices but duly adjusted for income tax purposes.
(5) If any person fails to pay any tax as prescribed under or
pursuant to this article he shall be chargeable with the tax which
should have been so paid and, in addition, with further tax or
interest as provided for in article 44, and such tax, additional tax
and interest shall be recovered from such person in the same
manner as other tax assessed and charged upon him. 
(6) For the purposes of subarticle  (5)  a notice by the
Commissioner to any person showing the tax which should have
been paid and any additional tax and interest 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.
(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 an offence under
subarticle  (8) .
(8) ( a ) Any person who contravenes or fails to comply with
the provisions of this article or of any rules made
thereunder shall be liable on conviction to a fine
( multa )  of not less than fifty liri and not exceeding five
hundred liri and to a further fine  ( multa )  of not less
than five liri but not exceeding fifty liri for every day
during which the offence continues.
( b ) The Commissioner may compound any offence under
this article and may before judgment stay or compound
any proceedings thereunder.
  34      CAP. 372. ]                INCOME TAX MANAGEMENT
(9) Notwithstanding anything contained in the preceding
provisions of this article, any tax payable by an international
trading company and by a company with respect to profits allocated
to the foreign income account shall not become payable before the
earlier of:
( a ) the date of distribution of such profits by the company;
or
( b ) eighteen months after the end of the accounting period
in which the aforesaid profits were made by the
company.
Gains or profits 
from transfer of 
property.
Cap. 123.
43. ( 1 ) Where any person derives gains or profits from the
transfer of property referred to in article 5 ( 1 )( a )( i )  and  ( ii )  of the
Income Tax Act, irrespective of whether such gains or profits are
chargeable under the provisions of that article or under any other
provision of the Income Tax Acts, he shall remit to the
Commissioner within fifteen days of the relative transfer in such
manner as may be prescribed, a provisional tax payment equivalent
to 7% of the consideration relating to the transfer of the property or
of the value of the donation:
Provided that in deeds of emphyteusis or sub-emphyteusis
no account shall be taken of any yearly ground rent or sub-ground
rent payable according to the deed.
( 2 ) Provisional tax under this article shall not be payable in
respect of:
Cap. 123.
( a ) any transfer of assets not subject to tax on capital
gains, or to tax under the provisions of article 4 of the
Income Tax Act; 
( b ) transfer of property on deeds of partition;
( c ) transfer of shares in public companies.
Cap. 123.
( 3 ) 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 subarticle
( 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 maybe.
Cap. 123.
( 4 ) Any provisional tax paid for the purposes of this article
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.
( 5 ) If any person fails to pay any provisional tax 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
               INCOME TAX MANAGEMENT [ CAP. 372.        35
assessed and charged upon him.
( 6 ) For the purposes of subarticle  ( 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.
( 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 ) .
( 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 fifty liri and not exceeding five hundred liri
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 two liri but not exceeding ten liri for every day during
which the offence continues after conviction:
Provided that the Commissioner may compound any
offence under this article and may before judgment stay or
compound any proceedings thereunder.
( 9 ) ( a ) The provisional tax payable under this article shall be
paid in such manner as may be prescribed.
Cap. 364.
( b ) Notwithstanding anything that may be provided for in
the rules where immovable property or any 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 provisional tax 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
provisional tax under this article shall for all purposes
of the Duty on Documents and Transfers Act, be
deemed to be a failure of his duties under that Act.
Cap. 123.
Cap. 364.
( c ) Where any assets the transfer of which is subject to tax
on capital gains under article 5 of the Income Tax Act,
is sold in a judicial auction, the Registrar of Courts
shall have the same duties with regard to the
withholding and payment of the provisional tax 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.
  36      CAP. 372. ]                INCOME TAX MANAGEMENT
Additional tax and 
interest for non-
payment of tax, 
and enforcement of 
payment.
Amended by: 
XXIII.1995.5;
IX. 1999.9;
II. 2003.47.
Cap. 123.
44. ( 1 ) Where any tax payable within the periods provided for
in subarticle (1) or (2), subarticle (3)( a ) and ( b ), in article 42, in
article 45 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
fifteen 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;
Cap. 123.
( c ) additional tax charged under this subarticle 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.
( 2 ) The Commissioner may, in his discretion, remit wholly or
in part any additional tax chargeable under subarticle (1):
Provided that no such remission shall be effected by the
Commissioner unless he is satisfied that the person liable for the
payment of the tax was prevented from making payment within the
periods provided for in article 42 ( 1 ) ,  ( 2 )  or  ( 3) or in article 45 or by
rules made thereunder 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 payable for the year of assessment 1999 or
any subsequent year of assessment is not paid by the relevant tax
settlement date -
( 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;
( 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
               INCOME TAX MANAGEMENT [ CAP. 372.        37
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 fifteen 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 subarticle (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;
Cap. 123.
( b ) no interest shall run on any additional tax charged
pursuant to the provisions of article 56(12) of the
Income Tax Act.
(2C) Interest charged under subarticle (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 subarticle (2A) in accordance
with rules issued for this purpose by the Minister responsible for
finance.
Cap. 12.*  of the Code of Organization
and Civil Procedure, shall apply with respect to any warrant issued
on the strength of any executive title mentioned in article 40 and to
the paying out of the proceeds of the sale by auction of the property
seized; and no opposition or reservation in the schedule of deposit
shall stay the paying of any sum deposited in court following any
such warrant as aforesaid.
( 4 ) The provisions of subarticle  ( 3 )  shall not prejudice the
amount of tax that may be finally determined under the other
provisions of the Income Tax Acts.
Collection of tax 
after determination 
of objection or 
appeal.
Amended by:
IX. 1999.10.
45. Where payment of tax is kept in abeyance in accordance
with the provisions of article 41 pending the result of a 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:
*Repealed by Act XXIV of 1995.  See  article 466 of Chapter 12.
  38      CAP. 372. ]                INCOME TAX MANAGEMENT
Provided that nothing in this article or in article 41 shall be
construed as suspending the running of interest on the tax
outstanding as aforesaid and interest on the said tax shall be
computed and due in accordance with the provisions of article
44(2A) as from the relevant tax settlement date up to the date of
payment.
Payment of tax by 
persons about to 
leave Malta.
Amended by:
IX. 1999.11.
46. ( 1 ) If in any particular case, the Commissioner has reason
to believe that a person who has been assessed to tax may 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
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.
( 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.
( 3 ) Notice of any assessment made in accordance with the
provisions of subarticle  ( 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.
( 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 subarticle  ( 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.
( 5 ) The provisions of subarticle  ( 2 )  shall not affect the powers
conferred upon the Commissioner by articles 30 and 31.
Suit for tax by 
Commissioner.
Amended by:
IX. 1999.12.
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
               INCOME TAX MANAGEMENT [ CAP. 372.        39
( 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.
(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.
( 3 ) The running of the period of prescription specified in this
article shall be interrupted by any judicial act filed before the
expiration of such period by the Commissioner, whereby payment
of the tax is claimed.
PART VIII
Refunds
Repayment of tax. 
Amended by: 
XX.1996.21;
V. 1998.7;
IX. 1999.13;
II. 2003.48.
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:
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:
Provided also that where the claim relates to tax paid for
the year of assessment 1999 or any subsequent year of assessment
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:
Provided further that in no case shall any refund be made in
respect of -
Cap. 123.
( 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 the
provisions of article 12 of the Income Tax Act or of
any other 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
( 4 ) ; and
( c ) any tax which a company has deducted or is entitled to
deduct from any dividend paid to a collective
investment scheme.
  40      CAP. 372. ]                INCOME TAX MANAGEMENT
For the purposes of this proviso -
"company" includes a collective investment scheme; and
"dividend" includes any distribution made by a collective
investment scheme.
( 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
deliver a true and correct return did not proceed from any fraud or
wilful act or omission on the part of that person.
Cap. 123.
(2A) Subject to the provisions of sub- subarticle (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) When the tax repayable has been determined under article
31 following 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 twelfth 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
subarticle (2A).
(2C) The Commissioner shall be entitled to deduct from any
repayment due to a person as stated in subarticles (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 subarticle (2A) or (2B)
after any deduction made in terms of subarticle (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.
(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 subarticles (2B) to (2E) shall not apply to
refunds to which subarticle (4) or the proviso to subarticle (7)
refers.
               INCOME TAX MANAGEMENT [ CAP. 372.        41
( 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:
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. 
( 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.
( 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.
( c ) For the purposes of this subarticle and subarticle  ( 7 ) ,
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.
( 5 ) A claim for refund as aforesaid shall be made not later than
four years from the date from which the amount of tax is eligible
for refund.
Cap. 123.
( 6 ) The Commissioner shall make payment of the refund under
subarticle  ( 4 )  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 shall not be taxable.
( 7 ) ( a ) Where a claim for refund has been made under the
provisions of subarticle  ( 4 ) , no person shall be entitled
  42      CAP. 372. ]                INCOME TAX MANAGEMENT
to a further refund under that subarticle or to a refund
under any other provisions of the Income Tax Acts of
the Malta tax paid in respect of which the said claim
has been made.
( b ) Where a claim for refund of the Malta tax paid has
been made under subarticle  ( 1 ) , no person shall be
entitled to a further refund under the provisions of
subarticle  ( 4 )  of the Malta tax in respect of which the
said claim has been made.
( c ) Where a company  ( the distributing company )  pays a
dividend out of profits allocated to the foreign income
account, to a company resident in Malta  ( the recipient
company )  and a claim for refund has been made under
the provisions of subarticle  ( 4 )  in respect of the tax
paid by the recipient company on the dividend
received from the distributing company, no person
shall be entitled to a further refund under the
provisions of subarticle  ( 4 )  of the Malta tax in respect
of which the said claim has been made:
Provided that a person entitled to such refund as set out
under subarticle  ( 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 suffered by the company and
the tax chargeable on such person on such income in accordance
with the provisions of this Act.
( 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 end
of the month in which the refund becomes due and shall be
recoverable as such.
PART IX
Offences and Penalties
General provisions 
regarding offences.
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 ten
liri and not exceeding fifty liri.
Cap. 446.
( 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; 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
               INCOME TAX MANAGEMENT [ CAP. 372.        43
imprisonment for a term of not less than three days, in addition to
any other punishment except imprisonment for a longer term.
Penalty for failure 
to comply with 
notice.
50. Every person who without sufficient cause -
( a ) fails to comply with the requirements of a notice,
intimation, request or demand note given or made 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 ten liri and not exceeding fifty liri, and
to a further fine  ( multa )  not exceeding two liri for every day during
which the default continues after conviction.
Penalty for making 
incorrect returns, 
etc.
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,
shall be guilty of an offence and shall, on conviction, be liable to a
fine  ( multa )  of not less than twenty-five liri and not exceeding two
hundred liri 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.
( 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.
( 3 ) The Commissioner may compound any offence under this
article, and may before judgment stay or compound any
proceedings thereunder.
Penal provisions 
relating to fraud, 
etc.
52. ( 1 ) Any person who wilfully with intent to evade or to
assist any other person to evade tax under the Income Tax Acts - 
( a ) omits from a return or any other document or
statement made, prepared or submitted for 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
  44      CAP. 372. ]                INCOME TAX MANAGEMENT
( 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,
shall be guilty of an offence, and shall for each such offence be
liable on conviction before a Court of Magistrates sitting as a court
of criminal judicature to a fine  ( multa )  of not less than fifty liri and
not exceeding two hundred liri and, in addition, 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.
( 2 ) The Commissioner may compound any offence under this
article, and may before judgment stay or compound any
proceedings thereunder.
Penalty for 
offences against 
official secrecy.
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 one hundred liri and not more than one thousand liri, or to
imprisonment for a period not exceeding six months, or to both
such fine  ( multa )  and imprisonment.
Tax to be payable 
notwithstanding 
any proceedings 
for penalties, etc.
54. The institution of proceedings for, or the imposition of, a
penalty, fine or term of imprisonment under the Income Tax Acts
shall not relieve any person from liability to payment of any tax for
which he is or may be liable.
Saving for criminal 
proceedings.
55. The provisions of the Income Tax Acts shall not affect any
criminal proceedings under any other Act or law.
Prosecution to be 
with the sanction 
of Commissioner.
56. No prosecution for any offence against the Income Tax
Acts may be commenced except at the instance of or with the
sanction of the Commissioner.
Documents 
containing 
evidence of act or 
omission by 
warrant holder.
Added by: 
V. 1998.4.
Cap. 281.
57. * (1) In this article -
( a ) "warrant holder" means a person or firm in possession
of a warrant issued under the Accountancy Profession
Act;
( b ) "Board" means the Board constituted under article 6 of
the Accountancy Profession Act.
*This article was originally added as article 19A.
               INCOME TAX MANAGEMENT [ CAP. 372.        45
(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 14(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.
(3) The Commissioner shall certify any document he sends to
the Board in accordance with subarticle (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.
(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.
(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:
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.
(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 subarticle (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.
(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.
(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
  46      CAP. 372. ]                INCOME TAX MANAGEMENT
the Commissioner;
 ( b ) binding the Commissioner to give evidence or expla-
nations in respect of any documents sent by him to the
Board;
( c ) binding the Commissioner to conduct any investi-
gation or make reports on the conduct of any warrant
holder.
(9) The documents to which this article refers are:
( a ) any report or certification signed by a warrant holder;
( b ) any records, books, accounts or computations, or any
extract thereof, in respect of which a report or
certification referred to in paragraph ( a ) hereof has
been made:
Provided that a document referred to in this
paragraph shall not be deemed to be a document to
which this article refers unless it is sent to the Board
together with the said report or certification.
PART X
Power to make rules
Power to make 
rules.
Amended by:
II. 2002.81.
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;
( 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;
and
( c ) for any such matters as are authorised by this Act to be
prescribed.
Record of certain 
exemptions to be 
laid on Table of the 
House of 
Representatives.
Cap. 123.
59. A record of any exemption made by the Minister
responsible for finance under the provisions of article 12 ( 2 )  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.
Transitory 
provision.
Cap. 123.
60. ( 1 ) The provisions of article 4 ( 4A )  of the Income Tax Act
as in force immediately before the coming into force of this Act and
the Income Tax  ( Amendment )   ( No.2 )  Act, 1994, shall continue in
force with respect to every capital assets return mentioned in that
subarticle with respect to the years of assessment mentioned in that
subarticle up to the year of assessment 1994.
Cap. 123. ( 2 ) The provisions of the Income Tax Act with respect to
               INCOME TAX MANAGEMENT [ CAP. 372.        47
returns of income and capital assets for the years of assessment up
to the year of assessment 1994, shall continue in force, as
immediately in force before the coming into force of this Act.
