S.L. 325.6 Art. 28Entitlement in case ofwaiverofcertain incentives.

(1) A qualifying company, as defined in the Act, whose activities are not qualifying activities as set out in regulation 4(3)

and:

(a) which, in any one of the five consecutive years of assessment including and ending with year of assessment 2002 benefited from the provisions of articles 4, 5, or 5A of the Act, such that at least 10% of its chargeable income derived from its trade or business, for any of those years of assessment, reckoned before taking into consideration the provisions of the said articles, has been exempted from, or subjected to reduced rates of income tax in terms of those articles; or

(b) which is constituted in terms of Maltese law, or registered as an oversea company with the Registrar of Companies, on or after the 1st November 2000 but before the 12th June 2001, and which would have been entitled to the benefits provided by articles 4, 5 or 5A of the Act but for the provisions of articles 4(6), 5(7) and 5A(6) of the Act, and which, had it so qualified, would have had at least 10% of its chargeable income derived from its trade or business for years of assessment 2002 or 2003, reckoned before taking into consideration the provisions of the said articles, exempt from, or subjected to reduced rates of income tax in terms of those articles, shall qualify for the benefits provided by regulations 4 and 5 if it satisfies the other relevant conditions to qualify for the benefits provided by those regulations and if, where applicable, it revokes, by 30 April 2003 in terms of article 34(2) of the Act, its right to be eligible for the benefits provided by articles 4, 5 and 5A of the Act with effect from year of assessment 2004 or any previous year of assessment; and the trading activities of such a qualifying company shall, as regards such company only, be deemed to be activities referred to in regulation 4(3):

Provided that the provisions of this regulation shall not be applicable in respect of a qualifying company for a year of assessment if, in the accounting period ending in the year preceding that year of assessment, there has been a material change in the trading activities of such qualifying company:

Provided further that a company which would have been entitled to benefit for the aforementioned incentives in the manner set out in this sub-regulation in any of the aforementioned years of assessment but did not so benefit, or would not have so benefited, solely due to the fact that it did not have any chargeable income or did not claim the benefit, shall be deemed to be a company to which this regulation refers: Provided further that for the purpose of this sub-regulation the base period profits referred to in article 5(2) of the Act shall be deemed to be zero.

(2) A certificate issued by the Corporation confirming that a company satisfies the provisions of sub-regulation (1) or that there has been no material change in a company's trade or business, shall be conclusive evidence of those facts.