S.L. 123.54 Art. 4Transfer conditions. Cap. 372. Cap. 123. 3 Cap. 364. S.L.364.06

The exemptions granted by this Order shall be subject to the following conditions -

(a) the deemed transfer value referred to in regulation 3(d) shall be the cost at which the company had acquired the dwelling house increased by the cost of improvements incurred by the company before the 21st November, 2000 as shown in the records which that company is required to keep in accordance with article 19(4)(a) of the Income Tax Management Act disregarding any revaluation that may have been made by the company of the value of the said property;

(b) if the actual consideration for the transfer is less than the deemed transfer value determined as aforesaid the shortfall shall not be treated as a loss for any of the purposes of the Income Tax Act and the amount of the shortfall shall, moreover, be deemed for the purposes of that Act to be a dividend paid by that company to the transferee out of the untaxed account and the provisions of article 59(5) and of article 62 and the other relevant provisions of that Act shall apply accordingly;

(c) for the purpose of determining the capital gains in terms of the Income Tax Act arising upon a subsequent transfer of the dwelling house in full or in part by the transferee, the cost of acquisition of the dwelling house shall be deemed to be the deemed transfer value as determined in accordance with paragraph (a), and notwithstanding the provisions of article 5(10)(b) and

(c) of the said Act, no capital loss resulting from or bad debt incurred in relation to any other transfer shall be set off against any capital gains determined as aforesaid;

(d) when the parties to the transfer wish to avail themselves of the exemptions granted by this Order they shall make and give in a form supplied by the Commissioner the declarations and all the information specified in the Schedule to this Order. The declarations in the said form shall be signed on behalf of the company by an individual who is an officer of that company duly authorised for that purpose, by the transferee, by a notary public and by a certified public auditor as specified in the said Schedule and the form shall be delivered to the Commissioner of Inland Revenue together with the notice relative to the deed required in terms of article 51 of the Duty on

Documents and Transfers Act and the Duty on

Documents and Transfer Rules, within the time limit prescribed for the delivery of that notice: provided that in the case of a transfer made before the date of this Order the said form shall be delivered to the Commissioner at the Capital Transfer Division of the Inland Revenue Department, Valletta, by not later than the 31 July, 2001;

(e) the parties to the deed shall furnish to the Commissioner such further information and documents as he may at any time reasonably require for ascertaining the eligibility to the exemptions granted by this Order;

(f) in the event that any condition set out in this regulation is not fulfilled or that any information or declaration given or made for the purposes of this Order results to be incorrect in any material respect, the exemptions shall be forfeited;

(g) this Order shall have such retroactive effect as may be necessary to give effect to the exemptions granted herein with respect to any transfer to which this Order applies made before the date of this Order.