Rules for setting-off of tax arrears
updated 13 November 2021
The Exemption from Tax on Property Transfers (Set-off of Tax Arrears) Rules, 2021, were published virtue of LN 419 of 2021. The rules apply to any transfer on which tax is chargeable in terms of article 5A of the Income Tax Act that is made by means of a public deed not later than 31 December 2022 by a person who had acquired that property on or before the 31 March 2021 and who owes “relevant tax arrears.” In terms of the rules, a person who makes a transfer to which the rules apply would be entitled to an exemption from tax in accordance with the rules if a payment is made against his relevant tax arrears when the specified conditions are satisfied.
On 12 November 2021 the Malta Institute of Taxation, jointly with the Institute of Financial Services Practitioners, issued a joint press release, decrying the rules as undesirable and untenable…read more.