Cap. 123 ст. 7Year of assessment 1973.

(1) No tax shall be payable upon the income of any person which but for the provisions of this article would have been chargeable for the year of assessment commencing on 1st January,

1973.

(2) Notwithstanding the provisions of sub-article (1) hereof, tax shall still be chargeable for the year of assessment 1973 in respect of any bonus share and any unduly large dividend distributed by any company by resolution taken between the 27th July, 1972 and the 31st December, 1972, and in respect of any other unduly inflated income chargeable under any of the paragraphs of article 4(1) where the Commissioner is of the opinion that such income accrued to or was derived by any person between the 27th July, 1972 and the 31st December, 1972 who was in a position to determine the amount thereof.

(3) The income still chargeable to tax for the year of assessment 1973 in accordance with the provisions of sub-article

(2) shall be computed by considering the said bonus share and the excessive part of the unduly large dividend and income to be the highest part of the chargeable income which, but for the provisions of that sub-article, would have been charged to tax for the year of assessment 1973.

(4) For the purposes of sub-article (2) any dividend declared during the period 27th July, 1972 to 31st December, 1972 which exceeds by twenty per cent the highest dividend declared by the same company between the 1st January, 1969 and the 26th July, 1972, shall, unless the contrary is proved, be deemed to be unduly large.

(5) Saving the foregoing provisions of this article, the provisions of this Act shall still apply for the year of assessment 1973.

(6) The provisions of this article shall not apply in the case of any individual who, in any year of assessment up to the year of assessment 1972, was entitled to a deduction under article 53(4),

(5) or (6) as in force at the relative time: Provided that the personal deductions for the year of assessment 1973 shall in any such case be increased by an amount equal to what would have been the individual’s chargeable income for the said year but for the provisions of this sub-article.

(7) In any case referred to in sub-article (6), no surtax shall be payable for the year of assessment 1973.

(8) Where, in respect of the year of assessment 1973 -

(i) a company is entitled to deduct tax from a dividend paid to any person in accordance with the provisions of article 59(1) hereof; or

(ii) tax has been paid by deduction from the income of any person in accordance with the provisions of article 59(6) or article 73 hereof, such tax shall, saving any other provisions of this Act, be set off against the liability to tax of the said person for such year of assessment as the Commissioner may elect.

(9) Any excess remaining after tax has been set off as provided in sub-article (8) shall be refunded in accordance with the provisions of article 48 of the Income Tax Management Act.

(10) The provisions contained in sub-article (1) shall not apply to the income of any body of persons arising from activities relating or ancillary to oil-prospecting, banking, sound or television broadcasting, film renting or insurance (excluding commissions derived from the sale of insurance by bodies of persons residing in Malta).