Cap. 123 ст. 44Special provisions in respect of certain profits deemed distributed.

(1) A company (other than a company incorporated or registered outside Malta and not resident therein) may apply to the

Commissioner in writing to have any profits which the

Commissioner has ordered to be deemed distributed in terms of article 43 to be deemed distributed as follows:

(a) twenty of the said profits on such date or per centum dates as the Commissioner has ordered;

(b) eighty of the said profits in the year per centum immediately preceding the year of assessment 1991: Provided that where an assessment raised on a shareholder as a consequence of the said deemed distribution has become final and conclusive, the assessment shall not be reopened by way of the provisions of this sub-article: Provided further that an application made by a company for the purposes of this sub-article shall not be valid if it is made after the 30th June, 1991.

(2) In the case where a company is served with a deemed distribution order by the Commissioner in terms of article 43 in respect of any year immediately preceding any of the years of assessment 1984 to 1989 and after the 23rd November, 1990, the company may apply to the Commissioner in writing to have the undistributed profits for the said years to be deemed distributed by the Commissioner as follows:

(a) twenty of the said profits on such date or per centum dates as the Commissioner may order;

(b) eighty per centum of the said profits in the year immediately preceding the year of assessment 1991: Provided that an application made by a company for the purposes of this sub-article shall not be valid if it is made after the lapse of thirty days from the date of service of the deemed distribution order or the 30th June 1991, whichever is the later.

(3) Notwithstanding any other provisions of this Act, where an application is made in terms of this article, the profits deemed distributed by the Commissioner shall be charged to tax on the company at the following additional rate of tax:

(a) 25c on every euro of profits deemed distributed for any year preceding the year of assessment 1990;

(b) 0.025c on every euro of profits deemed distributed for the year of assessment 1991.

(4) (a) For the purposes of this article, when the profits deemed distributed are subsequently distributed by the company to the shareholders, the dividend shall be grossed up as set out in article 31 without taking into account the tax charged additionally on the company in terms of sub-article (3).

(b)The tax payable by the company under sub-article (3) shall not be availed of for set-off in terms of article 60 when the profits deemed distributed are subsequently distributed to the shareholders.