Income Tax Act (Cap. 123), article 9B

9B. (1) In this article: "relevant laws" means the Income Tax Acts, the Succession and Donation Duties Ordinance (Cap. 70 of the revised edition of th e Laws of Malta, 1942), the Death and Donation Duty Act, the Duty on Documents Act and the Duty on Documents and Transfers Act ; "qualifying asset" means an asset that is registe red in accorda nce with a scheme made under article 39 of the Exchange Control Act or article 11 of the External Transactions Act ; "tax" means any tax or duty char geable under any provision of the relevant laws. (2) Subject to the provisions of sub-article (3), there shall be exempt from tax otherwise chargeable under any provision of the relevant laws: (a) any income, including capital gains, derived from a qualifying asset at any time before the date on which that asset is registered as a qualifying asset; (b) any income, including capit al gains, to the extent that a qualifying asset represents such income or an undeclared part of such income or an accumulation thereof, at any time before the date on which that asset is registered as a qualifying asset, derived by any person during the year immediately preceding any year of assessment in respect of which that person has furnished a return of his income to the Commissioner before the 31st March, 2005, or during the year immediately preceding any year of assessment commencing on or before th e 1st January, 2005, in respect of which that person was not required to furnish a return of his income; (c) any transfer inter vivos or transmission causa mortis of any asset, any document of transfer of such an asset and any assignment of an asset made or happening before the 31st March, 2005, or in respect of the undeclared part of the value or consideration of such transfer or transmission, to the extent that a qualifying asset represents such asset or the value in consideration of such transf er or transmission at any time before the date on which that asset is registered as a qualifying asset. (3) The exemption from tax on income referred to in sub-article (2)(a) and ( b) shall apply to the extent that the said income has not INCOME TAX [CAP. 123. 75 been declared in any income tax return furnished to the Commiss ioner, and no tax has been assessed with respect thereto in any assess ment raised under the Income Tax Acts and notified before the 31st M arch, 2005, and the exemption from tax referred to in paragraph ( c) of the said sub-article shall apply to the extent that no return, decl aration or notice of the relative transfer, transmission or assignment has been furnished to the Commissioner a nd no tax has been paid or asses sed thereon in an assessme nt raised and notifie d before the said da te under any provision of the relevant laws or to the extent that the va lue or consideration or transfer or t ransmission has been undeclared a nd represented as aforesaid by the qualifying asset. (4) No person shall be bound to mak e or furnish, or be considere d to have ever been bound to make or furnish, any return, declara tion, act or notice that would otherwise have been required to be mad e or furnished in accordance with any provision of the relevant laws relating to income, transfer, t ransmission, assignment or docum ent that is exempt from tax in terms of sub-article (2), and any respons ibility which the said person would have had under the relevant laws fo r the failure to make or to furnish any such return, declaration, act or notice shall be considered as never ha ving existed, and every person w ho, under any scheme made by the Government or any public entity or under any law, whichever it may be including this Act, before s uch registration was considered to be entitled to any benefit, exem ption or other advantage as a result of n ot having declared such eligibl e assets (or income therefrom) in connection with any claim for such ben efit, exemption or advantage, shall not be considered as having commi tted an offence as a result of not having declared those assets (or income therefrom) and shall not be required to refund that benefit, ex emption or other advantage acquired before that declaration: Provided that if such person, after the date of registration of those eligible assets (or income therefrom) continues for a per iod after the declaration to take that ben efit, exemption or advantage wi thout being entitled thereto, such pers on shall be considered as neve r having been exempted from liability for the offence, and shall forfeit the right not to refund any benefit, exemption or advantage acquired befo re the registration: Provided further that nothing in this article shall be construe d as exempting any person from refunding any benefit, exemption o r other advantage demanded to be paid back by the competent autho rity before the making of such declaration: Cap. 233. P r o v i d e d a l s o t h a t i n t h e c a s e o f a q u a l i f y i n g a s s e t t h a t i s registered under the Investment Registration Scheme Regulations , 2014, made under the External Transactions Act , the references to the dates "31st March, 2005" and "1s t January, 2005" in sub-article (2) and "31st March, 2005" in sub-article (3) shall be construed as ref erences to "4th November, 2013", "1st January, 2013" and “31st May, 201 4”, respectively. S.L. 233.10 Cap. 233. Provided also that in the case of a qualifying asset that is registered under the Special Registration Scheme Regulations , made under the External Transactions Act , the references to the dates "31st March, 2005" and "1st January, 2005" in sub-article s 76 CAP. 123.] INCOME TAX (2) and (3) of this article shall be construed as references to "15th March, 2007" and "1st January, 2006", respectively. (5) Where a person has availed himself of this article with respect to the Investment Registration Scheme Regulations, 2014 , any losses referred to in article 5(10)( a) and article 14(1)( g) declared in the return for year of assessment 2013 and for any preceding year of assessment, whenever submitted, shall not be carried forward and set off against the total income of the sai d person for the year preceding th e year of assessment 2014 or in any subsequent year. Cap. 372. (6) ( a) A person who is served with a notice of enquiry referred to in article 13(7) of the Income Tax Management Act shall, within thirty days from the date of service of the said notice, submit to the Commissioner the Registration Certificate referred to in regulation 9 of the Investment Registration Scheme Regulations, 2014. (b) Notwithstanding the provisions of sub-article (2), the exemption referred to in the said sub-article shall not apply if the person referred to in paragraph ( a) fails to submit the said Certificate within thirty days from the date of service of the said notice: Provided that the Commissioner, upon being satisfied that the said person was prevented from submitting the said Certificate within such period owing to absence from Malta, sickness or other reasonable cause, may extend the period as may be reasonable in the circumstances. Basis of assessment. Renumbered by: XVII. 1994.2.