Cap. 123 Art. 67AProfits distributed by a collective investment scheme.

(1) Notwithstanding the provisions contained in the definition of "foreign income account" in article 2, but without prejudice to any obligation to allocate profits to the final tax account and the immovable property account, in the case of a collective investment scheme:

(a) no profits shall be allocated to the foreign income account; and

(b) profits resulting from dividends distributed out of the foreign income account of another company shall be allocated to the Maltese taxed account.

(2) Where a collective investment scheme, which is not constituted as a company, distributes profits to persons resident in Malta, there shall be deducted tax as if, for the purposes of this article, such a collective investment scheme is constituted as a company. In this respect tax shall be deducted from every distribution of profits which, had the collective investment scheme been constituted as a company, would have been allocated to the untaxed account: Provided that the provisions of this sub-article shall not apply in respect of such payments to persons who are exempt from tax.

(3) Every amount deducted under sub-article (2) shall be a debt due from such collective investment scheme to the Commissioner payable not later than the fourteenth day following the end of the month in which the distribution was made and shall be so recoverable.

(4) Articles 63 to 65 shall apply mutatis mutandis in the circumstances set out in sub-article (2) of this article as they apply to distributions from the untaxed account. References in those articles to article 62 shall be construed as references to sub-article

(2) of this article, and references to dividend or untaxed dividend shall, where the context so requires, be construed as a reference to profits distributed by a collective investment scheme.

(5) For the purposes of this article a person resident in Malta shall include a non-resident person (including a non-resident company) who is owned and controlled by, directly or indirectly or who acts on behalf of an individual who is ordinarily resident and domiciled in Malta.

(6) An equalisation reserve shall form part of the distributable profits of a collective investment scheme.

(7) For the purposes of this Act, in the case of a collective investment scheme: "equalisation reserve" means an allocation of income, whether annual or interim, made in respect of units created or issued or sold during an accounting period, whether annual or interim, representing the best estimate of the relevant management company or of the scheme, of the amount of income included in the price by reference to which the issue or selling price of such units were determined; "dividend" includes amounts distributed out of an equalisation reserve.