Businesses that pay their taxes on time are being discriminated against by a new legal notice, according to the Malta Chamber of Commerce, Enterprise and Industry.

The Chamber said it took issue with Legal Notice 419, published on 5th November, entitled ‘Exemption from Tax on Property Transfers (Set-off of Tax Arrears) Rules’.

According to the notice, those who have tax arrears that were due by January 2021 will be allowed to pay any tax due on the transfer of property purchased before March 2021 against their arrears and thereby be exempt from tax on property transfers to the extent that they are in arrears.

“Like every other scheme intended to bring taxpayers in line, this scheme benefits only the defaulters, and does not consider those who have their tax payments in order. This in itself is unfair on those employers and businesses who pay their taxes when and as due,” The Chamber said, adding that the legal notice only serves to proliferate an unlevel playing field in favour of those who are in default.

“With its attachment to property transfers, this legal notice indicates that Government believes that tax monies have been used to purchase property, and that defaulters do not have the cash to settle tax arrears promptly and can only do so if they liquidate some of their property. If we do not want to see any more of this cavalier behaviour in the future, we should make sure that people are not able to purchase additional property before they settle their tax arrears.”

The Chamber also drew attention to the fact that those who default on tax payments to finance speculative activities may also end up delaying settlement of trade credit indefinitely, to the detriment of the businesses that supply them.

“Such practices are extremely damaging and need to be discouraged. It would be good to see schemes designed to help businesses recover their dues from defaulting unrelated parties who are heavily invested in property.”

Finally, the Chamber reiterated its call to blacklist businesses that do not honour their tax payment obligations and hold them back from participating in public procurement.

“There is no level playing field between businesses that honour their obligations and those who do not. Competitive calls must factor this in to encourage more compliance and curb unfair practices.”

Related

Maltese real estate: A safe haven in troubled times

November 12, 2022
by Robert Fenech

As global risk factors continue to increase, Real Agents CEO Justin Camilleri explores why Malta’s property market remains a safe ...

How to make a new iGaming brand successful: SOFTSWISS COO discusses key characteristics

October 3, 2022
by BN Writer

According to analysts, the global online gambling market volume will reach US$127.3 billion by 2027

Family businesses facing new challenges in war for talent

October 3, 2022
by BN Writer

Family Business Office's Joseph Gerada examines how family businesses can best position themselves to attract and retain talent