Last call for landlords to regularise tax positions

Finance minister Edward Scicluna has urged tax evading landlords of residential buildings to regularise their income before a new tax scheme expires at the end of the month.

Through this scheme, the rate of tax on income from rented properties for residential purposes, including garages, will be reduced from a maximum of 35% to 15%.

To avail themselves of this scheme, landlords will have to declare their income from rent between 2005 and 2012 and pay the 15% tax on a two-year averaged rental revenue for the declared time period. No interest or penalties will be charged on such declarations.

Scicluna warned that the tax authorities will toughen their investigations on tax evaders and that those caught not having regularised their position will have to pay the standard 35% tax rate, as well as any potential penalties and interest.

Forms attached with a cheque covering the tax due are to be sent to the Inland Revenue Department by 30 June.