S.L. 364.6 Art. 11Transfer of company shares.

(1) Subject to the provisions of article 42(2)(c) of the Act, the provisions of sub-rules (5), (6) and (7) of rule 5 of the Capital

Gains Rules shall apply for the purpose of mutatis mutandis determining the real value of a company and the real value of shares in a company and references in the said sub-rules to "market value" shall be construed as references to "real value".

(2) Notwithstanding the provisions of sub-rule (1), the real value of marketable securities consisting of shares which do not participate in any way in the profits of a company other than by way of a fixed rate of return, shall be the book value of such shares as resulting from the company’s financial statements or such other value as the commissioner may determine in accordance with article 10 of the Act.

(3) The transferee in any transfer of shares, other than a transfer of shares referred to in sub-rule (2), shall submit to the Commissioner a statement prepared by a certified public accountant holding a practicing certificate in auditing made on the forms or means as supplied by the Commissioner for this purpose including a computation of the real value of the shares as required by sub-rule (1), and shall be accompanied, where applicable, by a Perit’s valuation of the real value of the immovable property taken into account in determining the value of the shares, together with a site plan issued by the Land Registry, signed and stamped by a Perit.

(4) The statement referred to in sub-rule (3) shall be delivered in triplicate to the Commissioner together with the payment of duty due on the transfer and the Commissioner shall stamp one of the copies in acknowledgement of the receipt of same and return it to the person who submitted it. The Commissioner shall not consider that delivery or the notice of the transfer required in accordance with the Act as valid unless payment is made as aforesaid.