On 21/05/2013,
you requested for the version in force on 21/05/2013
incorporating all amendments published on or before 21/05/2013.
The closest version currently available is that of 31/12/2009.
9. Section 13CA of the principal Act is amended —
(a)
by deleting subsection (6) and substituting the following subsections:
“(6) Notwithstanding subsections (2) and (4), where —
(a)
income of any prescribed person, being a company or the trustee of a trust fund, has been exempt from tax under subsection (1) in any year of assessment;
(b)
a person, either alone or together with his associates, beneficially owns on the relevant day —
(i)
if the prescribed person is a company, any issued securities of the prescribed person; or
(ii)
if the prescribed person is the trustee of a trust fund, any part of the trust fund; and
(c)
the person mentioned in paragraph (b) is a non-bona fide entity,
then the person mentioned in paragraph (b) shall not be liable to pay the penalty referred to in subsection (2) or (4); but a person (referred to in this section as the liable person) who —
(i)
beneficially owns on the relevant day equity interests of the person mentioned in paragraph (b); and
(ii)
is not himself a non-bona fide entity,
shall be liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula specified in subsection (6A) if, and only if, the total of —
(A)
the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) that are beneficially owned by the liable person on the relevant day; and
(B)
the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) that are beneficially owned by the associates of the liable person on the relevant day,
exceeds the prescribed percentage of the total value of all the equity interests of the prescribed person or of the trust fund (as the case may be) on that day.
(6A) The formula for the penalty referred to in subsection (6) shall be as follows:
A x B x C, | |||||
where | A | is the percentage which the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) beneficially owned on the relevant day by the liable person bears to the total value of all equity interests of the prescribed person or of the trust fund on the relevant day; | |||
B | is the amount of income of the prescribed person as reflected in the audited account of the prescribed person for the basis period relating to that year of assessment; and | ||||
C | is the tax rate applicable to that year of assessment as specified in section 43(1)(a) (if the prescribed person is a company) or 43(1)(c) (if the prescribed person is a trustee of a trust fund). | ||||
(6B) Subsection (3) or (5) (whichever is applicable) shall apply, with the necessary modifications, to the liable person as it applies to a relevant owner or relevant beneficiary as if the reference to subsection (2) or (4) (as the case may be) is a reference to subsection (6).”;
(b)
by deleting the words “subsection (6)” in subsection (7) and substituting the words “subsections (6)(i), (A) and (B) and (6A)”;
(c)
by inserting, immediately after subsection (7), the following subsection:
“(7A) Subsection (7) shall also have effect for the purpose of determining, under subsections (6)(A) and (B) and (6A), the beneficial ownership of a person in the equity interests of a trust fund for which a prescribed person is a trustee, with the following modifications:
(a)
the reference in subsection (7)(b) to the equity interests of another person (when applied to that trust fund) shall be read as the equity interests in that fund;
(b)
the reference in the definition of B under subsection (7) to the value of equity interests of the second level entity beneficially owned by the first level entity (when applied to that trust fund) shall be read as the value of the part of the trust fund beneficially owned by the first level entity;
(c)
the reference in the definition of B under subsection (7) to the total value of all equity interests of the second level entity (when applied to that trust fund) shall be read as the total value of the trust fund.”;
(d)
by deleting the word “or” at the end of paragraph (a) of the definition of “equity interest” in subsection (9) and by inserting immediately thereafter the following paragraph:
“(aa)
in relation to a trust fund for which a prescribed person is a trustee, any part of the trust fund; or”;
(e)
by deleting the words “subsection (2) or (4)” in the definition of “relevant day” in subsection (9) and substituting the words “subsection (2), (4) or (6)”; and
(f)
by inserting, immediately after subsection (9), the following subsection:
“(10) This section shall not apply to —
(a)
a company or trustee of a trust fund, as the case may be, that is incorporated or constituted on or after 1st April 2014; or
(b)
a company or trustee of a trust fund, as the case may be, that —
(i)
is incorporated or constituted before 1st April 2014; and
(ii)
is not a prescribed person at any time before that date.”.