Tax unit denies hairdressers' claims

The Tax Compliance Unit has vehemently denied claims that its officials were forcing hairdressers to cough up tax money in advance.

The TCU has described as "false" the allegations made during a recent meeting for hairdressers organised by the Chamber of Small and Medium Enterprises - GRTU.

The TCU only sends for those workers that are interested in the VAT and income tax scheme and its officials are duty bound to explain both the advantages and disadvantages. It is then up to the worker whether to accept such a scheme. In the past, the GRTU has accepted such a system for other self-employed sectors, the unit held.

Several hairdressers insisted they were being forced to sign an agreement with the TCU that would effectively compel them to pay a stipulated monthly sum of money in VAT and income tax in advance for a duration of three years.

But the TCU said that 27 per cent of hairdressers have actually turned down the agreement which meant they had every right to opt out of the scheme.

"An explanation of a taxpayer's obligations cannot be considered a threat. On the contrary, a tax official would be in the wrong if he doesn't inform the taxpayer of the consequences of a VAT or income tax investigation."

The GRTU said it would call for the additional costs sustained by the electricity surcharge to be deducted from the amounts of money requested by the TCU.

The unit however said that the surcharge was always factored in as an expense like others.

"The accusations made are unfounded and should be condemned, especially since they could have been made to influence the officials that are carrying out their duties," the TCU said.