Income Tax Management Act (Cap. 372), article 27

27. (1) Where income from any source accrues to or is received by a partnership that is carried on by any two or more persons jointly and the partnership is not a "company" in terms of article 2 of the Income Tax Act (including, for the avoidance o f doubt, partnerships in respect of which no election in terms of sub- article (6) of this article is in force), the income of any par tner from the partnership, shall be deemed to be the share to which he wa s entitled during the year precedin g the year of assessment in th e income of the partnership, suc h income being ascertained in accordance with the provisions of the Income Tax Acts and shall be included in the return of income to be made by such partner und er the provisions of th e Income Tax Acts. (2) The precedent partner, that is to say the partner who of the partners resident in Malta - (i) is first named in the agreement of partnership, or (ii) is the precedent acti ng partner if the partner named with precedence is not an acting partner, shall, when required by the Commissioner, make and deliver a return of the income of the part nership for any year, such inco me being ascertained in accordance wi th the provisions of the Inco me Tax Acts, and declare therein th e names and addresses of the ot her partners in the firm together with the amount of the share of t he said income to which each partner was entitled for that year; a nd - (a) where no partner is resident in Malta, the return shall be made and delivered by the attorney, agent, manager or factor of the firm resident in Malta; and (b) the provisions of the Income Tax Acts with respect to the failure to deliver returns or particulars in accordance with a notice fr om the Commissioner shall apply to any return requ ired under this article. (3) Where the Commissioner is not satisfied that income from any source accrues to o r is received by two or more persons joi ntly, the particular income shall be deemed to have accrued to or bee n received by such person entitled to a share of such income as t he Commissioner may elect, and assessment of tax shall be made accordingly. Cap. 123. (4) Where an assessment has b een made in accordance with the provisions of sub-article (3), the partnership shall not be con sidered to be a body of persons for the p urposes of article 60 of the Income Tax Act . (5) Nothing in this article contained shall prevent the decision of the Commissioner in the exercise of any discretion given to him from being questioned in an a ppeal in accordance with articles 35 and 37. Cap. 123. (6) Any partnership or EEIG refer red to in sub-paragraph (iii) of paragraph ( a) or sub-paragraph (ii) of paragraph ( b) of the definition "company" in article 2(1) of the Income Tax Act shall be entitled to make an election in w riting to be treated as a comp any for all purposes of the Income Tax Acts, and in such case, the provisions of this article shall not be applicable thereto. Such an INCOME TAX MANAGEMENT [CAP. 372. 29 election shall be made on such form and under such conditions a s the Commissioner may determine and shall be effected not later than sixty days after the date of setting up of the partnership or EEIG as the case may be: Provided that if no such election is made, the taxation of the partnership or EEIG , as the case may be, shall be regulated by the provisions of this article: Provided further that whether or not the partnership or EEIG elects to be treated as a co mpany or otherwise, the status of the said partnership or EEIG shall remain effective until such time as the Commissioner, at his sole discretion and for a reasonabl e cause, authorises a change follow ing a request in writing made by the partnership or EEIG , as the case may be, on such form and under such conditions as the Commissioner may determine. Signature of notices. Amended by: II. 2003.45; III.2026.40.