Income Tax Act (Cap. 123), article 7

7. (1) No tax shall be payable upon the income of any person which but for the provisions of this article would have been chargeable for the year of assessment commencing on 1st January , 1973. (2) Notwithstanding the provisions of sub-article (1) hereof, tax shall still be chargeable f or the year of assessment 1973 i n respect of any bonus share and any unduly large dividend distributed by any company by resolution taken between the 27th July, 1972 and the 31st December, 1972, and in respect of any o ther unduly inflated income chargeable under any of the paragraphs o f article 4(1) where the Commission er is of the opinion that such income accrued to or was derived by any person between the 27th July, 1972 and the 31st December, 1972 who was in a position to determine the amount thereof. (3) The income still chargeable to tax for the year of assessment 1973 in accordance with the provisions of sub-articl e (2) shall be computed by considering the said bonus share and t he excessive part of the unduly large dividend and income to be th e highest part of the chargeable income which, but for the provis ions of that sub-article, would have been charged to tax for the yea r of assessment 1973. (4) For the purposes of sub-article (2) any dividend declared during the period 27th July, 1972 to 31st December, 1972 which exceeds by twenty per cent the hi ghest dividend declared by the same company between the 1st January, 1969 and the 26th July, 1972, shall, unless the contrary is proved, be deemed to be unduly large. (5) Saving the foregoing provisions of this article, the provisions of this Act shall still apply for the year of assess ment 1973. (6) The provisions of this article shall not apply in the case o f any individual who, in any year of assessment up to the year of assessment 1972, was entitled to a deduction under article 53(4), (5) or (6) as in force at the relative time: Provided that the personal deductions for the year of assessment 1973 shall in any such case be increased by an amoun t equal to what would have been the individual’s chargeable incom e for the said year but for the p rovisions of this sub-article. (7) In any case referred to in sub -article (6), no surtax shall be INCOME TAX [CAP. 123. 67 payable for the year of assessment 1973. (8) Where, in respect of th e year of assessment 1973 - (i) a company is entitled to deduct tax from a dividend paid to any person in accordance with the provisions of article 59(1) hereof; or (ii) tax has been paid by deduction from the income of any person in accordan ce with the provisions of article 59(6) or article 73 hereof, such tax shall, saving any other provisions of this Act, be set of f against the liability to tax of the said person for such year o f assessment as the Com missioner may elect. Cap. 372. (9) Any excess remaining after ta x has been set off as provided in sub-article (8) shall be refunded in accordance with the provisions of article 48 of the Income Tax Management Act . (10) The provisions contained in sub-article (1) shall not apply to the income of any body of persons arising from activities relating or ancillary to oil-prospecting, banking, sound or television broadcasting, film renting or insurance (excluding commissions derived from the sale of insurance by bodies of persons residing in Malta). Special provisions in respect of certain formerly undeclared income. Added by: XXXV .1972.5. Amended by: XX.1973.2; XXVI.1977.4; IX.1983.5; XIII.1983.4,5. Renumbered by: XVII. 1994.2. Amended by: XVII. 1994.10; L.N. 409 of 2007. Cap. 239 - Revoked.