Income Tax Act (Cap. 123), article 44

44. (1) A company (other than a company incorporated or registered outside Malta and not resident therein) may apply to the Commissioner in writing to have any profits which the Commissioner has ordered to be deemed distributed in terms of article 43 to be deemed distributed as follows: (a)t w e n t y per centum of the said profits on such date or dates as the Commissioner has ordered; (b) eighty per centum of the said profits in the year immediately preceding the year of assessment 1991: Provided that where an assessment raised on a shareholder as a consequence of the said deemed distribution has become final and conclusive, the assessment shall not be reopened by way of the provisions of this sub-article: P r o v i d e d f u r t h e r t h a t a n a p p l i c a t i o n m a d e b y a company for the purposes of this sub-article shall not be valid if it is made aft er the 30th June, 1991. (2) In the case where a company is served with a deemed distribution order by the Commissioner in terms of article 43 i n respect of any year immediately preceding any of the years of assessment 1984 to 1989 and after the 23rd November, 1990, the company may apply to the Commissioner in writing to have the undistributed profits for the said years to be deemed distribut ed by the Commissioner as follows: (a)t w e n t y per centum of the said profits on such date or dates as the Commissioner may order; (b) eighty per centum of the said profits in the year immediately preceding the year of assessment 1991: Provided that an application made by a company for the purposes of this sub-article shall not be valid if it is made a fter the lapse of thirty days from the date of service of the deemed distribution order or the 30th J une 1991, whichever is the late r. (3) Notwithstanding any other provisions of this Act, where an application is made in terms of this article, the profits deeme d distributed by the Commissioner shall be charged to tax on the company at the following additional rate of tax: (a) 25c on every euro of profits deemed distributed for any year preceding the year of assessment 1990; (b) 0.025c on every euro of profits deemed distributed for the year of assessment 1991. (4) ( a) For the purposes of this article, when the profits deemed INCOME TAX [CAP. 123. 153 distributed are subsequently distributed by the company to the shareholders, the dividend shall be grossed up as set out in ar ticle 31 without taking into account t he tax charged additionally on the company in terms of sub-article (3). (b)The tax payable by the company under sub-article (3) shall not be availed of for set-off in terms of article 60 when the profits deemed distributed are s ubsequently distributed to the shareholders. Further special provision in respect of profits deemed distributed. Added by: XXXVI.1990.8. Renumbered by: XVII. 1994.2.