S.L. 123.202 Art. 4The relevant tax arrears of the person who makes a transfer.

(1) The relevant tax arrears of a person who makes a transfer to which these rules apply are those relevant tax arrears that are shown in the records of the Commissioner for the purposes of the law in terms of which they became due as a liability incurred directly by that person and outstanding as on the date on which a qualifying payment is made and shall not include any amount of tax arrears of another person even though the first-mentioned person may be liable for the payment of that amount by reason of his being a director, manager or other principal officer, or a shareholder, partner, member, agent or a representative in whatever capacity of that other person.

(2) Notwithstanding the provisions of sub-rule (1):

(a) when a person, hereinafter in this paragraph referred to also as "the transferor", makes a transfer to which these rules apply, relevant tax arrears of another person, hereinafter in this rule referred to also as "the other party" may, at the option made jointly by the transferor and the other party, be treated for the purpose of these rules as if they were relevant tax arrears of the transferor in the case that:

(i) the transferor is a company, and the other party is an individual who, throughout the period from the 31st March 2021 to the date of the transfer, has owned, directly or indirectly, at least ninety-nine per cent (99%) of the issued share capital and voting rights of that company;

(ii) the other party is a company, and the transferor is an individual who, throughout the period from the 31st March 2021 to the date of the transfer, has owned, directly or indirectly, at least ninety-nine per cent (99%) of the issued share capital and voting rights of that company; or

(iii) the transferor and the other party are both companies and, throughout the period from the 31st March 2021 to the date of the transfer, the individual direct or indirect beneficial owners of the two companies were the same and each such individual held, directly or indirectly, the same percentage interest in the nominal share capital and voting rights in each of the said companies;

(b) relevant tax arrears incurred by a deceased person shall be treated as relevant tax arrears of the heirs proportionate to their respective share of the inheritance.