Income Tax Management Act (Cap. 372), article 14

14. (1) For the purpose of obtaining full information in respect of any person’s income, the Commissioner may, notwithstanding any other provision of this Act or of the Income Tax Act , give notice to such person requiring him within a reasonable time to complete and deliver to the Commissioner any return specified in such notice and/or to attend personally or by representative be fore him and to produce for examination any books, documents, accounts and returns (including bank statements and passbooks) which the Commissioner may deem necessary. (2) Notwithstanding any provision of the Income Tax Acts or any other law the Commissioner may, for the purpose of obtainin g full information in respect of any person’s income, give notice in writing to such person requiring him to furnish the Commissione r within the time indicated in such notice, not being less than t hirty days from the date of service of such notice, a statement conta ining particulars of - (a) all property held in his own name or in the name of his spouse, minor children or dependents, or in any other name, in which he is or has been interested or has or has had a beneficial interest, or in respect of which he has or has had the power to operate or dispose, jointly or solely, in his own economic interest and which property is in existence or which has existed at any time during the period stated in the notice; (b) all income derived from the property referred to in paragraph ( a); (c) all other property wherever situated not referred to in paragraph ( a) and the income d erived therefrom; (d) any property transferred or delivered by him to, or which is currently held by, any person, including a designated person referred to in sub-article (3), during the period or periods specified in such notice; and (e) all facts bearing upon his liability to income tax which he is, or has been, liable to. (3) ( a) Where the Commissioner has reasonable grounds to suspect that the tax has been, is, or may be evaded by any person, he may request, by notice in writing to a designated person, that the designated person provides the Commissioner, within the time indicated in such notice not being less than fifteen (15) days from the date of service of such notice, with all such information and documentation which the de signated person may have relating to property of any kind or description, transferred or delivered to him by that person and owned, possessed, or held by the designated pers on under any title on behalf of or for the benefit of any such person on the date of the said notice or during the period specified in such notice not commencing earlier than five (5) years from the date of such notice. INCOME TAX MANAGEMENT [CAP. 372. 15 Cap. 377. (b) Any designated person who receives such notice shall provide the Commissioner with the information requested in the notice and this notwithstanding anything to the contrary i n the Income Tax Acts, any provision of the Professional Secrecy Act , any obligation of secrecy or confidentiality, or to any other restriction relating to the disclosure of information whether arising from a provision of law or any agreement or other arrangement. The Commissioner shall keep confidential any information provided to him by the designated person and shall not disclose such information to any other person except where the Commissioner is bound at law t o e f f e c t s u c h d i s c l o s u r e o r w h e r e h e r e q u i r e s t o u s e such information in the context of proceedings under this Act; provided that the Commissioner may report any act or failure by the designated person to the relevant regulatory authority which issued a licence or authorization to such designated person. Any information obtained by the Commissioner shall be used by him solely for the purpose of the investigation being carried out by the Commissioner as to whether tax has been, is, or may be evaded by the relevant person being investigated and, or any related proceedings under this Act. (c) The Commissioner shall sp ecify in a notice issued under this article what information he requires and whether with reference to the property held on the date of the notice and, or at any point during a period of time (not commencing earlier than five years from the date of such notice), and the designated person receiving the notice sha ll supply the following information: (i) details of any such property owned, possessed or otherwise held under any title and which had been transferred or delivered (whether directly or indirectly through a transaction or a number of transactions which the designated person is aware of) to the designated person or vested in such designated person by or on the instructions of the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph ( a); and (ii) details of the person or persons who transferred or delivered or made arrangements for the designated person to receive the property or on whose behalf the property was so transferred delivered or vested in the designated persons: Provided that this paragraph ( c) shall also apply to any property transferred or delivered to the designated person and is no longer held by the designated person or has been converted into a different form of property 16 CAP. 372.] INCOME TAX MANAGEMENT or has increased or decreased in value or extent or has been transferred to another designated person, but shall not apply where the property has been held temporarily for the purpose of a transaction and has been returned to the person who is being investigated. (d) If the designated pers on in receipt o f a notice - (i) has not held any proper ty which was transferred or delivered (whether directly or indirectly through a transaction or a number of transactions which the designated person is aware of) to the designated person or vested in such designated person by the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph (a); or (ii) holds or has held the aforesaid property on a temporary basis or as a simple administrator; or (iii) has returned the afores aid property to the person in respect of whom notice has been given by the Commissioner to the designated person in terms of paragraph ( a), he shall inform the Commissioner accordingly and shall have no further obligations in this regard unless the Commissioner seeks further information specifically on such circumstances in which case the provisions of this article shall apply mutatis mutandis . (e) (i) The provisions of this sub-article shall override and shall apply notwithstanding the provisions of any law imposing fiduciary obligations of the designated person or associate tow ards any person, including his customer, principal or other person who m ay have delivered, settled, donate d or otherwise transferred prope rty to the designated person. S.L. 586. 09. (ii) The rights of the data subject referred to in regulation 4 of the Restriction of the Data Protect ion (Obligations and Rights) Regulations , in particular the right of access, shall be restricted, partially or completely, where such a restriction is necessary and proportionate for a designated pe rson to adhere to his obligati ons under this sub-article. (iii) Disclosures made in the following circumstances shall not constitute an offe nce under this paragraph: (A) disclosures to the Commissioner or to a person authorised by the Commissioner; (B) disclosures made by the designated person to an associate or by an associate to another associate that are necessary in order for him to comply with the Commissioner’s request for information pursuant to this sub-article; INCOME TAX MANAGEMENT [CAP. 372. 17 (C) disclosures made in the course of proceedings instituted in any court or tribunal or administrative body agai nst the designated person or associate to the extent that the disclosures are required for the proper defence of the designated person or associate; (D) disclosures made in the course of any proceedings in any court or tribunal, or to any administrative body or authority, as long as a waiver for such disclosure has been given in writing by the Commissioner. (iv) In this paragraph, "associate" means an employee, employer, partner or assistant of the designated person but does not include the person or any of the persons whose details are indicated in the notice issued pursuant to this sub-article as required by sub-paragraph (ii) of paragraph (c). Such further notice in writing may be served on a person either personally or by being sent by post to his last known business or private address, and shall in the latter case be deemed to have been served within three working days from the da te it is sent by post. (f) For the purposes of this article: (i) "property" means pr operty of any kind or description, whether movable or immovable, personal or real, and wherever situated, and in relation to rights and interests whether vested, contingent, voidable or future, and including any money, investments, and amounts in savings, loan and other bank accounts (whether fixed, overdraft, current, deposit, or otherwise, and whether business or private accounts); (ii) a designated person is any person who may be acting as mandatory, nominee, trustee, agent, depository, custodian, under a contract of work or otherwise, and includes without limitation any of the following: Cap. 371. (A) a person who is in possession of a valid licence issued in terms of the Banking Act ; or Cap. 370. (B) a person who is licensed in terms of the Investment Services Act ; or Cap. 403. Cap. 487. (C) a person who is authorized in terms of the Insurance Business Act or enrolled in the Brokers List under the Insurance Distribution Act ; or Cap. 331. (D) a person who is authorised under the Trusts and Trustees Act to act as a trustee or as an administrator of any private foundation; or 18 CAP. 372.] INCOME TAX MANAGEMENT (E) advocates, notaries, legal procurators, accountants, auditors and other persons holding warrants to exercise a profession, and irrespective of whether such person is in actual possession of authorisations or is exempt from requiring such authorisations under any law or is acting in br each of law when holding such property without authorisation required to do so by applicable law; (iii) owning, possessing and holding property includes owning, possessing and holding with others or through others and, or enjoying a power to operate or dispose of such property in such manner as renders secret the ownership rights or interests of the person being investigated and does not include circumstances where such person remains registered as the owner of the property in a public register in Malta or where the designated person is owning, holding or possessing the property temporarily for the purposes of a transaction relating to or involving such property or is otherwise a simple administrator of such property. (iv) Repealed by Act VIII.2021.9. (g) Where a designated person gives any false, misleading or incorrect information in relation to a notice issued under this sub-article he shall be guilty of an offence and shall, on conviction, be liable to a fine ( multa ) of not less than ten thousand euro (€10,000) and not exceeding twenty-three thousand euro (€23,000). Returns to be deemed to be furnished by due authority.