Income Tax Act (Cap. 123), article 67A

67A. (1) Notwithstanding the provisions contained in the definition of "foreign income account" in article 2, but withou t prejudice to any obligation to allocate profits to the final ta x account and the immovable propert y account, in the case of a collective investment scheme: (a) no profits shall be allocated to the foreign income account; and (b) profits resulting from dividends distributed out of the foreign income account of another company shall be allocated to the Maltese taxed account. (2) Where a collective investment scheme, which is not constituted as a company, distributes profits to persons reside nt in Malta, there shall be deducted ta x as if, for the purposes of t his article, such a collective investment scheme is constituted as a company. In this respect tax shall be deducted from every 196 CAP. 123.] INCOME TAX distribution of profits which, had the collective investment sc heme been constituted as a company, w ould have been allocated to the untaxed account: Provided that the provisions of this sub-article shall not apply in respect of such payment s to persons who are exempt fro m tax. (3) Every amount deducted under s ub-article (2) shall be a debt due from such collective investment scheme to the Commissioner payable not later than the fourteenth day following the end of the month in which the distribution was made and shall be so recoverable. (4) Articles 63 to 65 shall apply mutatis mutandis i n t h e circumstances set out in sub-arti cle (2) of this article as the y apply to distributions from the untaxed account. References in those articles to article 62 shall be construed as references to sub- article (2) of this article, and references to dividend or untaxed divi dend shall, where the context so requires, be construed as a referen ce to profits distributed by a co llective investment scheme. (5) For the purposes of this article a person resident in Malta shall include a non-resident person (including a non-resident company) who is owned and controlled by, directly or indirectly or who acts on behalf of an individual who is ordinarily resident and domiciled in Malta. (6) An equalisation reserve shall form part of the distributable profits of a collectiv e investment scheme. (7) For the purposes of this Act, in the case of a collective investment scheme: "equalisation reserve" means an allocation of income, whether annual or interim, made in resp ect of units created or issued o r sold during an accounting period, whether annual or interim, representing the best estimate of the relevant management compa ny or of the scheme, of the amount of income included in the price by reference to which the issue or selling price of such units wer e determined; "dividend" includes amounts distributed out of an equalisation reserve. No obligation to disclose. Added by: XVII. 1994.26. Amended by: II. 2007.19; IX. 2007.5; IV . 2011.22; XIII. 2015.56.