Tax czar’s new powers no throwback to 1980s' ex officio, minister says

Finance minister says new powers to Commissioner of Inland Revenue strengthen action against tax evasion.

19 July 2011, 12:00am
by Matthew Vella

2 min read

Finance Minister Tonio Fenech has defended a law granting the Commissioner of Inland Revenue the power to request information on taxpayers’ and their families’ property and income, in cases of suspected tax evasion.

The new powers were part of a package of laws introduced in the Budgetary Estimates in March 2011, and were approved unanimously by the House of Representatives.

Fenech said that Labour’s shadow finance ministers Charles Mangion and Karmenu Vella were both briefed on the details of these new powers. He refuted claims reported in l-orizzont that the new powers were akin to those granted in the 1980s to the tax commissioner in the ex officio system.

Specifically, the new laws grant the Commissioner the power to request all information on property, holdings and other income held by all members of a household, to be handed to him within the space of 30 days.

Persons who give false, misleading or incorrect information in relation to these notices will be liable to a fine of anything between €10,000 and €23,000.

Fenech said a front-page report by General Workers Union daily l-orizzont that the laws were secretly pushed through was misleading. “No law can be passed if not without the approval of the House, whose sessions are public.”

Fenech said the financial crisis had brought fundamental changes in the way countries interact with each other. “Amongst these changes was the exchange of and access to information on suspected tax evasion, which are important requisites for the EU and the Organisation for Economic Cooperation and Development (OECD).”

Fenech also said the access to tax information was an OECD requisite for Malta to be placed on the white list of tax regimes, and for double-taxation treaties.

“The key difference from the 1980s’ ex officio system is that the latter affected all self-employed and professionals, while this law only targets suspected tax evasion cases.”

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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TIFTAKRU kemm kien ghamel STORBJU Dr Eddie Fenech Adami ghax dak iz zmien il PL kien jibghat EX OFFICJU lin NEGOZJANTI mela ISSA Minisrtru Nazjonalisti qied jghamel l-ISTESS HAGA Fejnu Dr Fenech Adami issa TKELLEM Dott u IFTAH HALQEK biex TIRRIBATTI dak li INt WERZAQT kontra tieghu mhux fuq il KWISTJONI ta DIVORZJU u nitlob lil Kummisarju biex jekk irid jista jibda JINVETIGA lil iben l-ex PM Dr Adami biex jara kif ibnu Dr Beppe Fenech Adami skont it taghrif li ta huwa stess fil parlament HUWA fost l-AKTAR SINJURI mil PN

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It is obvious that the brain of our politicians concentrate how they are going to deteriorate our profits - income and other - but seem to forget all those foriegners working in catering -ex PACEVILLE IS FULL OF THEM maids - offices - pole dancers - care givers - english schools - building construction companies - PLUSTERERS - and so many other - All without working permits - thousands of them not paying one single euro in TAX using our clinics - hospital - FREE OF CHARGE - so many of them also working in homes at 6 euros per hour - the majority using the facility of WESTER UNION TO EXPORT THEIR INCOME TO THEIR COUNTRIES - something which every weekend is so evident with long queues waiting their turn .... can someone give me an idea of how much millions of euros are exported in this manner???? Can these thousands of foriegners be more of burden to the local TAX PAYER - Is it possible that no one knows about such abuse - LETS GIVE AN INCENTIVE TO THE LOCAL TAX PAYER AND TO HELP IDENTIFY THESE FORIGNERS... SO many ways in incentives that could benefit the locals and declare these millions of euros in TAX EVASION - u mela tisikka u tisikka lill maltien biss qisna qedien nisirqu il FLUS-THIS IS ALSO HARMING THE TOURISIM INDUSTRY AS THE SERVICES RENDERED TO OUR TOURISTS IN THE ENTERTAINMENT INDUSTRY THE HOTELS RESTAURANTS TOURIST GUIDES ETC ETC IS NOT AT ALL FAMILIAR TO OUR CHARMING MALTESE WAY TO WORK IN THIS AREA ...

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I have information that during the early 80's Inland Revenue clerks received, in writing, what to issue as 'estimated assessments' to every category of self emplyed. Some called these as 'norms'. But, by 'word of mouth', they were told not to tell these taxpayers that it was a ministerial order. And the clerks got the brunt.

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How about investigating Tonio Fenech house cleaner lady working without the proper documents with his full knowledge.?

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Would the CIR's power be retrospective to scrutinise past tax evasion?

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Allura min xtara apartament hdejn il bahar u min qabad u bena terrace house l-armier sea front fuq art tal gvern ser jigu stmati l-istess? Min dejjem hadem biex xtara fejn joghqod u min QATT ma hadem u ghandu il gid li halaq Alla kollu ser jigu stmati l-istess? Din il-ligi kienet inkluza fil programm elettorali tal-gvern?

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Good. So how many requests for information were there from the Commissioner of Inland Revenue? From what I see, there should be quite a few enquiries.

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This is NO different to the internal revenue depts in the UK and the US. If the IR suspects underpayment of income tax, then they check out people's properties and lifestyles to see if their tax return sustains that. It's a known fact that people in Malta are turning up for their dole money, in a BM or a Merc. WHY shouldn't they be checked out?

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gino7266 qed jieħdu €1,000 għax qed jieħdu €500 fuq kull salarju u qed jieħdu żewġ salarji. Din għadu ĦADD ma meriha.

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BIG BROTHER EVESDROPPING ON EVERYONE. WHY NOT PUBLISH EVERYONE'S INCOME TAX RETURNS SO THAT PEOPLE WILL KNOW WHO IS HIDING MONEY AND NOT PAYING TAXES? IT WAS ONCE SAID THAT WHEN THE INCOME TAX DEPARTMENT STARTED INVESTIGATING THE OWNERS OF BOATS AND YACHTS AND LUXURIOUS CARS IT MET WITH A "PARLIAMENTARY WALL".

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@furjaniz "U meta it taxxa se tinzel ghal 25%?" Risposta: Qabel l-elezzjoni..u wara jgholli xi haga ohra halli igib dak li tak bhal per ezempju igieghlek thallas ghal xi private pension scheme barra l-NI.

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Mela l-kummissarju tat-taxxi nterni jista jibda billi jibghat ghall-inormazzjoni tal-Ministri kollha kemm huma l-ewwel u tal-membri parlamentari wkoll, jiflihom sewwa, jhabbar ir-rizultat u jekk dawn jghaddu mill-gharbiel tieghu jista ma jibghat ghal hadd iktar ghax l-gahrbiel ikun laxq u kullhadd jghaddi minnu. U jekk xi ministru/membru parlamentari jehel jaghmel festa bih halli jkun ta' ezempju ghall-poplu kollu. Issa jekk isib xi haga l-kummissarju mbaghad jibghat ghal buisnessmen kollha u jibqa sejjer hekk sa kemm jibghat ghat-tallaba wkoll. Imma l-ewwel irid janalizza, jaghrbel, jghasar lil kull min hu fil-parlament.

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ex officio bhan 1980's ! ara iddahalx il- bulk buying wkoll ! jew tiftah xi fabria tal-kappar !

Luke Camilleri •

Kummiedji u Buzzulotti! Bhal meta ma ghollux it-taxxa fuq il-yachts sakhemm habib lahaq xtara wiehd, meta iffrankaw il-car registration tax fuq il-BMW ta' zmien ic-Chogm, meta katar ricenti johorgu salarji bhal tal-Kbarat barrranin ta' L'Air malta prattikament tax -free, wedghiet ta' qabel kul elezzjoni ....... Kummiedji u Buzzulotti!

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U meta it taxxa se tinzel ghal 25%? Kienet weghda fl-ahhar elezzjoni din ma hafna ohrajn li ghadhom fuq is shab. Issa ergghu emnuh meta tasal elezzjoni ohra.

Krista Sullivan •

inkella kif ha jiehduwom 500euro fil gimgha zieda