Income Tax Act (Cap. 123), article 30

30. (1) Notwithstanding anything to the contrary contained in this Act, the provisions of this article shall apply in the cas e of any of the following: (a) a diocese, including, in respect of any income accruing to him or vested in him by reason of his office, the bishop thereof; (b)a p a r i s h ; (c) a church not falling under the jurisdiction of a parish and not due to be dealt with under paragraph ( d); (d) an ecclesiastical community as defined in sub-article (9) hereof; (e) a province or similar division of any religious order; and each of the aforesai d is in this article referred to as "en tity": Provided that the Commission er may, in such circumstances and subject to such conditions as he may deem appropriate, trea t as one entity any two or more of the entities aforesaid. (2) There shall be brought to charge to tax in the hands of any entity to which this article applies the income accruing to or derived by such entity as well as the income accruing to or derived by any associated, linked or allied institution, foundation, be quest, or other similar organisa tion or body of persons. (3) The total gross receipts on re venue account of any entity to which this article applies, ascertained in accordance with the provisions of sub-article (2), shall be deemed to be receipts o f a trade or business and the entity shall be chargeable accordingl y: 132 CAP. 123.] INCOME TAX Provided that the provisions of article 14(1)( g) shall not apply in respect o f any such entity. (4) In the case of any ecclesiastical community, there shall be included in the gross receipts on revenue account any income received in his own right by any individual member thereof duri ng the year immediately preced ing the year of assessment: Provided that any part of such income which is in excess of two thousand and three hundred and thirty euro (€2,330) shall b e excluded. (5) An entity shall be chargeable to tax in respect of its incom e for the year immediately preceding any year of assessment on th e greater of the following two amounts: (a) the income from all sources ascertained in accordance with the provisions of sub -articles (2), (3) and (4); (b) that part of the income chargeable to tax under the provisions of article 4(1)( c), ( d) and ( e) to which there shall be added, in the case of an ecclesiastical community, the income recei ved in his own right by any individual member thereof; in ascertaining the total amount of the income as aforesaid - (i) the provisions of sub-ar ticle (2) shall be taken into account; (ii) no deductions shall be allowed in respect of expenses or other charges other than ground-rent and other burdens on immovable property; (iii) there shall be exclud ed such part of the income received in his own right by any individual member of an ecclesiastical community which is in excess of two thousand and three hundred and thirty euro (2,330). (5A) An ecclesiastical community shall be entitled to a further deduction against its income as established under sub-article ( 5) equivalent to two thousand and three hundred and thirty euro (2,330) in respect of every indivi dual who was a member thereof during the year immediately pr eceding the year of assessment: Provided that no such deduction shall be allowed under this sub-article in respect of any individual member who receives remuneration or other income fro m the ecclesiastical community of which he is an individual member. (6) The provisions of sub-articles (4), (5) and (5A) shall not affect the liability to tax of any individual member of an ecclesiastical community on any income received by him in his own right. (7) For the purposes of this article - (a) a parish which is entrusted to an ecclesiastical community shall be deemed to be a separate entity from the said community; (b) where more than one ecclesiastical community belong INCOME TAX [CAP. 123. 133 to the same religious order, each such community shall be dealt with as a separate entity for the purposes of this article if it is so considered by the statute of the order; (c) the province or similar division of a religious order shall be deemed to be a separ ate entity from any of the communities falling under that order; (d) where an entity to which this article applies operates on its own account a trading or commercial undertaking, including a school, printing press, hospital or cinema, the entity and the undertaking shall be chargeable to tax separately and only the entity shall be dealt with in accord ance with the provisions of this article, the undertaking being considered and dealt with as a separate body of persons for all purposes of this Act: Provided that - (i) no profits or other income arising from the said undertaking in favour of the entity shall be included with the gross receipts of the entity for the purpose of any of the provisions of this Act; (ii) no deductions shall be allowed in computing the total income of the under taking in respect of any payments made to the entity on account of any expenses or charges whatsoever; (e) total gross receipts on r evenue account in all cases shall include income chargeable to tax in accordance with the provisions of article 4. (8) Where any income accrues to or is in any way vested in the head of a diocese in virtue of his office and does not actually constitute personal gains or profits of the said head, such inc ome together with any income accruin g to or vested in the diocese, shall, for the purposes of this article, be deemed to be derive d by one separate entity under the management and control of the hea d of the diocese; and the income a ccruing to the Ar chbishop of Ma lta and to the Bishop of Gozo in virtue of their office shall, notwithstanding any other provision of the law, be deemed to be six thousand and five hundred and fifty euro (6,550) and three thousand and five hundred euro (3,500) per annum respectively, or such higher sum as the Minister responsible for finance, from information given or otherwise o btained, determines to be the income received by them in virtue of their office, and the said income shall be added for assessm ent purposes to their personal income: Provided that the Commissioner shall grant such relief from the tax to any other person or entity as will, in his opinion, prevent the said amounts of six thousand and five hundred and fifty eur o (6,550) and three thousand and five hundred euro (3,500) (or an y higher sums determined as aforesaid) being brought to charge bo th in the hands of the said bishops and in the hands of any other person or entity in the same year of assessment. 134 CAP. 123.] INCOME TAX (9) For the purposes of this ar ticle and of article 56(4) - "ecclesiastical community" means a number of individuals living together in a community in acco rdance with the rules of a relig ious order recognised as such by the Commissioner; "individual member", in relation to an ecclesiastical community , means any individual, lay or religious, who formed part of such community on the thir ty first day of Decem ber during the year immediately preceding the year of assessment. Income from certain dividends to include tax thereon. Amended by: XXII. 1976.4; XXVI. 1977.10. Renumbered by: XVII. 1994.2.