Duty on Documents and Transfers Act (Cap. 364), article 41C

41C. (1) Notwithstanding any other provision of this Act, where a family business is transferred as a going concern by an individual to family members as defined in the Family Business Act and there is a transfer of immovable property being a commercial tenement as defined in article 1525 of the Civil Code (hereinafter referred to as "property"), that had been used in the said business for a period of at least three years preceding th e transfer, in assessing the duty chargeable in terms of the said Act, duty shall be charged on the first five hundred thousand euro (€500,000) of the value of the property transferred as aforesai d at the rate of three euro and fifty cents per one hundred euro or part thereof, provided that the notary who receives any deed of such a transfer shall record in the d eed a written decl aration by the individual so transferring and the person so acquiring that the conditions laid out in this article are satisfied and the notary shall warn the said persons of the importance of the truthfulness of such declaration: Provided that this sub-articl e shall also apply where the said individual transfers proper ty that had been used in a fami ly business carried out by the fam ily members or business for a pe riod of at least three years preceding the transfer: Provided further that if such property or part thereof is either transferred inter vivos by the family members or family business, as the case may be, du ring the first three years from the date of acquisition, or ceases to be used in the business withi n the said period, the duty which would have been payable on the acquisition of the property or part thereof that is so transferred, but for the relief granted under thi s article, shall be levied at t he time of the said transfer inter vivos or at the time the property cease s to be used by the business: Provided further that where su ch property or part thereof transferred inter vivos by the family member or family business, as the case may be, is replaced within one year by an immovable property used solely for a simi lar purpose in the family busine ss (hereinafter referred to as the "replacement property"), in ass essing the duty chargeable in respect of the replacement property, dut y chargeable and paid in accordan ce with the previous proviso sha ll be allowed as a deduction. (2) For the purposes of paragraphs ( a), ( b) and ( c) of article 42(1), in assessing the duty chargeable, when an individual 34 CAP. 364.] DUTY ON DOCUMENTS AND TRANSFERS transfers shares or interests in a partnership, trust or founda tion to family members referred to in sub- article (1) and such shares o r interests in a partnership, trust or foundation are held in a f amily business which carries on a business, no account shall be taken of the first one hundred and fifty thousand euro (€150,000) or suc h other greater amount as may be prescribed of the value of the shares, or interests in a partnership, trust or foundation transferred as aforesaid: Provided that this sub-arti cle shall only apply where: (a) the said family business does not own, directly or indirectly, any immovable property other than property referred to in sub-article (1 ) used in the said business for a period of at least three years preceding the transfer; (b) the said family business is controlled and beneficially owned, directly or indirectly, to the extent of more than eighty-five per cent by the said individuals or family members. Cap. 565. (3) For the purpose of this article "business" shall mean a family business registered with the Regulator in terms of the Family Business Act and shall duly present an updated certificate in accordance with the law. (4) This article shall only appl y where the Commissioner issues a certificate attesting that he is satisfied that the condition s laid out in this article are fulfilled. (5) Where, in accordance with the second proviso to sub-article (1), the property or part th ereof is either transferred inter vivos by the family members or family businesses, or ceases to be used i n the business, the duty chargeable under the said proviso shall be due by the family members or bus iness, as the case may be, and shall be remitted to the Commissioner within fifteen working da ys from the date on which the property is either transferred as aforesaid, or ceases to be used in the business. Duty on transfer of marketable securities. Amended by: XVI. 1994.9; XI. 2000.24; II. 2004.41; II. 2005.29; II. 2006.13; L.N. 425 of 2007; I. 2010.38; IV . 2011.35; III. 2013.37; XIII. 2015.100; VIII.2020.45; XVIII.2021.31; VII.2022.46. Cap. 123.