Income Tax Management Act (Cap. 372), article 19

19. (1) Every person carrying on a trade, business, profession or vocation shall keep proper and sufficient records of his inc ome and expenditure to enable his income and allowable deductions t o be readily ascertained. (2) The records referred to in s ub-article (1) shall include: (a) proper accounts with respect to - (i) all sums of money received or expended and the matters in respect of which the receipt or expenditure takes place; and (ii) all sales, purchases or services rendered, as well as any other transaction, act or operation pertaining to the trade, business, profession or vocation; (b) a profit and loss account or equivalent annual statement; (c) a statement of the assets and liabilities as on the date on which the annual accounts of the trade, business, profession or vocation are made up or, in the case of a company, a balance sheet. (3) Subject to such conditions as he may deem fit to impose, the Commissioner may exempt any person in respect of any year o f assessment from keeping any record or statement referred to in sub- * Applicable as from the year of assessment 2019. 20 CAP. 372.] INCOME TAX MANAGEMENT article (2). (4) The records required to be kept under the provisions of this article shall be supported by s uch documents as may be appropri ate in the circumstances, including - Cap. 386. (a)* in the case of a company registered in Malta, the balance sheet and profit and loss account, which shall comply in every detail with the applicable provisions of articles 167, 168 and 169 of the Companies Act , and the said balance sheet and profit and loss ac count shall have attached thereto a report drawn up by a certified public auditor as provided by the applicable p rovisions of articles 179 and 181 of that Act, save as may otherwise be expressly provided in rules which the Minister may prescribe: Provided that in the case of a company which is not resident in Malta, such records shall be those which refer to the company’s activities in Malta; (b) in the case of a co-operative society, the audited financial statements of the society, prepared in all respects as required by the law for the time being in force regulating co-operative societies and accompanied by any report which is by any such law required to accompany the audited financial statements of the society. (5) All records required to be kept by any of the provisions of this article shall be retained for a period of not less than ni ne years after the completion of the trans actions, acts or operations to which they relate: Cap. 386. Provided that the provisions of this sub-article shall not apply where effect has been given to the provisions of article 26, of article 163(5) or of article 324(2) of the Companies Act . Certain powers of the Commissioner. Amended by: XI. 2001.31; II. 2005.33; L.N. 425 of 2007; IV . 2011.59; VIII.2021.10.