![]() |
Home
| Databases
| WorldLII
| Search
| Feedback
Maltese Laws |
INCOME TAX ACT (CAP. 123)
Collective Investment Schemes (Investment Income) (Amendment) Regulations, 2003
BY virtue of the powers conferred by articles 41B and 96 of the Income Tax Act, the Minister of Finance and Economic Affairs has made
the following regulations: -
Citation.
L.N. 55 of 2001
.
Amends regulation
14 of the principal regulations.
Adds new regulation 15 to the principal regulations.
1. The title of these regulations is the Collective Investment Schemes (Investment Income) (Amendment) Regulations, 2003 and shall be read and construed as one with the Collective Investment Schemes (Investment Income) Regulations, 2001, hereinafter referred to as “the principal regulations”.2. In paragraph (a) of subregulation (3) of regulation 14 of the principal regulations, for the words “authorised financial intermediary shall collect tax” there shall be substituted the words “authorised financial intermediary shall, unless an election in terms of article 35 of the Act has been made, collect tax”.3. Immediately after regulation 14 of the principal regulations, there shall be inserted the following new regulation:Tax treatment of switches.
“15. (1) For the purposes of this regulation:
“chain of consecutive switches” means a series of consecutive switches (which for the purposes of this regulation may constitute
a single switch) commencing by a switch, immediately prior to which there was not a switch, and terminating with a switch following
which there was a transfer of securities which was not a switch;
“final securities” means those securities in a sub-fund last acquired in a chain of consecutive switches;
“initial securities” means those securities in a sub-fund the switch of which was the first switch in a chain of consecutive switches;
“prescribed switch” means a switch of securities from a prescribed fund;
“sub-fund” includes a class, part or other similar section of the same collective investment scheme;
“switch” means a transaction, whereby securities in a sub- fund of a collective investment scheme are switched to, or transferred
to, or re-invested in, or exchanged for or otherwise transformed into securities of another sub-fund of the same collective investment
scheme provided that the holder of the last mentioned securities is the same person as the holder of the first mentioned securities
and that the holding in the last mentioned sub-fund follows immediately the holding in the first mentioned sub-fund.
(2) A switch constitutes a transfer of securities for the purposes of article 5 of the Act:
Provided that it shall be deemed that no loss or gain arises upon a switch.
(3) (a) Capital gains arising at the time of disposal of final securities shall be computed by aggregating those chargeable capital
gains and allowable capital losses which would have arisen during the chain of consecutive switches and transfer of final securities
had the provisions of the proviso to subregulation (2) of this regulation not been enacted:
Provided that in the case of a disposal of final securities held in a non-prescribed fund and where the relevant chain of consecutive
switches does not include a prescribed switch, such capital gains may be calculated by deducting from the proceeds of the disposal
of the relevant final securities, the cost of acquisition of the relevant initial securities.
(b) In calculating the capital gains as provided for in paragraph (a) of this subregulation –
(i) the conversion of foreign currencies, where required, are to be made at the rates of exchange used in the acquisition or
transfer of the securities relevant to the calculation of the capital gains. Where proof is not available as to the rates of exchange
used in the acquisition or transfer of the relevant securities, conversion of currencies is to be made at the rate of exchange (middle
rate of the
B 2253
B 2254
Central Bank) prevailing at the end of the calendar year in which the acquisition or transfer, as the case may be, was made:
Provided that if the acquisition and transfer are made in the same calendar year, the conversion rate to be used is the rate of exchange
(middle rate of the Central Bank) prevailing on the date of the acquisition and the rate of exchange (middle rate of the Central
Bank) prevailing on the date of the transfer;
(ii) where the aggregation of capital gains and capital losses as provided for in paragraph (a) of this subregulation involves different
currencies, such gains or losses may be converted into Maltese liri at the rates of exchange (middle rate of the Central Bank) prevailing
on the dates of the relevant switches or disposal of final securities;
(iii) the cost of acquisition is to be calculated in the same manner provided for in regulation 9 of these regulations, or in such
other manner which may be approved by the Commissioner.”.
Ippubblikat mid-Dipartiment ta’ l-Informazzjoni – 3, Pjazza Kastilja – Published by the Department of Information – 3, Castille Place
Mitbug[ fl-Istamperija tal-Gvern – Printed at the Government Printing Press
Prezz 6ç – Price 6c
WorldLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.worldlii.org/mt/legis/laws/ita123cisir2003n188o2003889