S.L. 123.128 Art. 4Allowable deductions.

(1) For the purpose of ascertaining the total income of a securitisation vehicle, or for the purpose of ascertaining the income attributable to a trust where such securitisation vehicle is constituted as a trust created by a written instrument, as the case may be, there shall be deducted, in addition to any relevant outgoings and expenses which may be deducted under the provisions of article 14 of the Act, the following outgoings and expenses:

(a) sums payable by the securitisation vehicle to the originator or assignor -

(i) for the transfer of securitisation assets to the said securitisation vehicle; or

(ii) as a result of any risks of the said originator assumed by the said securitisation vehicle;

(b) premiums, interest or discounts in relation to financial instruments issued, or funds borrowed, by the securitisation vehicle to finance the acquisition of securitisation assets or the assumption of risks; and

(c) any expenditure incurred by the securitisation vehicle in respect of the day to day administration of the securitisation vehicle itself, including expenditure relating to statutory requirements, and of its assets and risks, including the collection of any relevant claims. Where the securitisation vehicle opts to delegate such administration, or part thereof, to another person, the amount of expenditure incurred for the services received from such other person for the performance of the said administration may be deducted.

(2) (a) Where, after taking into account the relevant deductions contemplated in article 14 of the Act and in sub-rule (1)(a), (b) and (c), tax is chargeable on any remaining total income of the securitisation vehicle, a further deduction of an amount equal to the said remaining total income may be claimed.

(b) Such further deduction may be claimed at the option of the securitisation vehicle: Provided that the Commissioner is satisfied that the relevant originator or assignor, or their assigns or successors in title, has given his irrevocable written consent to the exercise of such option in relation to the relevant contract. For this purpose, the securitisation vehicle needs to provide proof of such written consent giving details of identity of the originator or assignor, including the tax registration number for Maltese income tax purposes where applicable, and the place where the control and management of its business is exercised.