| Collective Investment Schemes |
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| CIS guide |
8. Tables & Figures |
Index |
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| Table 1 - Monitoring Fluctuations in the Value of Assets |
Commencing on the date on which a classification has been made, keep a cumulative total of value of the Malta assets and a cumulative total of the total assets for each day, e.g.
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| Date |
Value of Malta Assets |
Cumulative Total |
Value of Total Assets |
Cumulative Total |
| 1st March 2001 |
500000 |
500000 |
600000 |
600000 |
| 2nd March 2001 |
505000 |
1005000 |
595000 |
119500 |
| 3rd March 2001 |
510000 |
1515000 |
575000 |
1770000 |
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This fund would have been classified as a non-prescribed fund as the value of Malta assets on the first day is less than 85% of the value of the total assets.
It is also to be kept in mind that the value for any particular day is that determined on the last preceding working day.
When the number of days is 91, exclude the values for the first day and continue the exercise by reference to a moving 90-day period. In the above example, where the fund would have been classified on the 1st March 2001, the days to be taken into account up to the 29th May 2001 are each day since that classification. On, say, the 30th September 2001, the relevant period for a fund classified on the 1st March 2001 would be the 3rd July to the 30th September 2001, both inclusive.
On each day, calculate the daily averages by dividing each of the cumulative totals by the number of days. The resulting average for Malta assets must then be calculated as a percentage of the resulting average for total assets. The daily averages and the resulting percentages for the 3 days in the above example are:
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Daily average of Malta assets |
Daily average of total assets |
Percentage of Malta assets over total assets |
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| 1st March 2001 |
500000 |
600000 |
83.33% |
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| 2nd March 2001 |
502000 |
597500 |
84.02% |
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| 3rd March 2001 |
505000 |
590000 |
85.59% |
* |
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Note should be taken whenever the percentage for a particular day is less (for a prescribed fund) or is at least (for a non-prescribed fund) 85%. Thus, the 3rd March 2001 in the example is marked as * since the average value of Malta assets of this non-prescribed fund has exceeded 85%. No notification, however, need be made at this stage and the fund continues to be treated as a non-prescribed fund.
If and when there are thirty consecutive "marked" days, inform the Commissioner, but no change in the status of the fund occurs unless the Commissioner issues a new classification.
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| Table 2 - Calculation of capital gains on the redemption of units in a non-prescribed fund |
Data:
Investor holds 1200 units in a non-prescribed fund on 1st March 2001. The price last quoted on the Malta Stock Exchange before the 1st March 2001 for those units was Lm1.2. The price quoted on the Malta Stock Exchange on date of purchase of such units was Lm1.3.
He purchases a further 800 units of the same class in May 2001 at Lm1.2 for Lm960
He redeems 500 units in June 2001 at Lm1.5 for Lm750.
He purchases a further 650 units of the same class in July at Lm1.5 for Lm975 and a further 350 in August at Lm1.6 for Lm560
He redeems 700 units in September at Lm1.8 for Lm1260
Calculation:
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| | | Lm |
| Cost of units held on 1st March(1200 @ 1.3) | | 1560 |
| Cost of 800 units purchased in May | | 960 |
| Total cost of units held in June before redemption | | 2520 |
| Total units held in June | 2000 | |
| Average cost per unit (2520 / 2000) | 1.26 | |
| Proceeds on redemption of 500 units | | 750 |
| Cost of acquisition of 500 units at average price of 1.26 | | 630 |
| Capital gains on first redemption | | 120 |
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| Cost of units held in June after redemption (1500 @ 1.26) | | 1890 |
| Cost of 1000 units acquired in July and August | | 1535 |
| Total cost of units held in September before redemption | | 3425 |
| Total units held in September | 2500 | |
| Average cost per unit (3425 / 2500) | 1.37 | |
| Proceeds on redemption of 700 units | | 1260 |
| Cost of acquisition of 700 units (700 @ 1.37) | | 959 |
| Capital gains on second redemption | | 301 |
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| Cost of units held in September after redemption (1800 @ 1.37) | | 2466 |
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| Table 3 - Capital gains on the reclassification of a fund from a non-prescribed to a prescribed status |
Data:
A non-prescribed fund was re-classified as a prescribed fund on 1st August 2001.
On the 31st July 2001 the investor held 1000 shares in the fund.
The price per share quoted on the Malta Stock Exchange of the shares in the fund on 31st July 2001 is Lm15.
The cost of acquisition per share is calculated at Lm10.
Investor acquires 2000 shares of the same class on 1st September 2001
He redeems 600 shares 1st October 2001 and 700 shares on 1st November 2001
Calculation of Capital Gains on Redemption:
- Redemption on 1st October 2001
The redemption of 600 shares in October is deemed as a redemption of shares held on 1st August.
These shares are deemed to be redeemed at the price quoted on 31st July of Lm15 per share.
As the cost of acquisition of these shares was calculated at Lm10 per share the capital gains on their redemption is Lm5 per share = Lm3000
Withholding tax is due on the proceeds of redemption at 15% of Lm3000 (regardless of the actual proceeds) = Lm450
- Redemption on 1st November 2001
Of the 700 shares redeemed on this date, only 400 will be deemed to have been held on 1st August as 600 shares have already been redeemed.
The 400 shares are again deemed to be redeemed at the price quoted on 31st July of Lm15 per share.
As the cost of acquisition of these shares was calculated at Lm10 per share the capital gains on their redemption is again taken at Lm5 per share = Lm2000
Withholding tax is due on the proceeds of redemption at 15% of Lm2000 (regardless of the actual proceeds) = Lm300
- The redemption of the other 300 units on 1st November 2001 (and of any other redemption taking place after that date) is a redemption of units in a prescribed fund and any gains thereon are not subject to the withholding tax.
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| Table 4 - Information to be supplied by authorised financial intermediaries |
A) Information to be supplied by authorised financial intermediaries on every payment certificate to be issued on the payment or reinvestment of the proceeds from the redemption of shares or units in a non-prescribed fund and on the payment of dividends by non-prescribed funds
- Sequential number of certificate
- Name and address of the authorised financial intermediary
- Description of the fund
- Name and identity card number of the investor
- In the case of a disposal of units or shares:
- The date of the disposal
- The number of units or shares disposed of
- The price for which the units or shares were disposed of
- The amount subject to tax
- The net amount paid or reinvested
- In the case of a distribution of profits
- The profits distributed before withholding tax
- The tax withheld
- The net payment
- Date of the certificate
- Signature of the authorised financial intermediary
B) Monthly account to be rendered to the Commissioner by financial intermediaries together with the remittance of tax withheld
- Name and address of the authorised financial intermediary
- Period covered
- Total tax withheld
- First and last sequential numbers of the corresponding payment certificates
- A breakdown giving
- The description of each fund
- The tax withheld on the payments from each fund
- The total number of payment certificates corresponding to payments from each fund
- The date of the return
- Signature of the authorised financial intermediary
C) For a period during which no tax was withheld a nil return must be submitted.
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| Table 5 - Capital Gains on the Surrender or Maturity of Unit Linked Products |
Data:
| Contract concluded on | 01-02-2000 |
| Date of maturity | 31-01-2005 |
| Premiums to be paid | Lm100/6 mths |
| | (February and August) |
| Linked Portion | 98% |
| Percentage of Linked Portion related to Non-Prescribed Funds | 60% |
| Total Proceeds on maturity | Lm2000 |
| Portion of proceeds relating to investments in Non-Prescribed Funds for linked portion | Lm1000 |
| The price quoted on the Malta Stock Exchange on 28-02-2001 for the units in Non-Prescribed Funds to which the policy is linked | Lm370 |
| The price quoted on the Malta Stock Exchange on 01-02-2000 | Lm388 |
Calculation of Capital Gains
Cost of aquisition:
| | Pre 01-03-2001 | |
| | This part of the cost is not based on the premiums paid but on the value of the underlying units | |
| | MSE Value of units in non-prescribed funds on 01-02-2000 | 388 |
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| | Post 01-03-2001 | |
| | This part of the cost is based on premiums paid | |
| | Premiums paid after 01-03-2001 (7 payments x Lm100) | 700 |
| | Linked Portion (98% of 700) | 686 |
| | Linked Portion related to Non-Prescribed Funds (60% of 686) | 412 |
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| | Total Cost of Acquisition | 388 |
| | Pre 01-03-2001 | 388 |
| | Post 01-03-2001 | 412 |
| | Total | 800 |
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| Proceeds on maturity from linked portion relating to premiums invested in non-prescribed funds | 1000 |
| Less total cost of acquisition | 800 |
| Capital Gain | 200 |
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| 15% withholding tax | 30 |
The balance of the proceeds is not related to non-prescribed funds and is not subject to the withholding tax under the investment income provisions.
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