AD welcomes euro, questions amnesty

Alternattiva Demokratika yesterday expressed satisfaction that the euro would be adopted next year but concern over the rationale behind the tax amnesty and its economic repercussions.

In regard to the adoption of the euro, chairman Harry Vassallo recommended that particular attention be given to vulnerable groups that may be more prone to abuse.

Dr Vassallo said that tax amnesties should be granted in very exceptional circumstances, because otherwise they would become an incentive for tax evasion, with taxpayers anticipating the next amnesty. This amnesty was in effect the fourth in as many years.

First there had been the Investment Registration Scheme and two subsequent extensions of the same scheme. Now the government was introducing a scheme to register cash and cash assets paying as little as four per cent.

Four amnesties in such a short span were unjust in regard to those who paid their income tax, as well as those taxpayers who were investigated by the Tax Compliance Unit and had to pay 35 per cent on undeclared income as well as very harsh penalties, he said.

He said the tax amnesty should not be anonymous. Those holding undeclared cash earned from legal activities would not have any problem declaring these cash holdings. It was the criminals who would not disclose their identities. These criminals should not be given an opportunity to clean up their act.

AD also believes that the penalty of four or six per cent should be applied only to sums of up to Lm10,000. For amounts greater than that a penalty of 15 per cent should be applied - the same rate applicable to part-time and overtime work.

Why should those who have evaded paying large sums pay any less, Dr Vassallo asked.