Amnesty for income tax defaulters

anthony girard

Sep 7th 2009, 15:16

What a shambles !
We have the Prime Minister discussing projects worth millions of euros, such as the new Parliament building on the one hand, and the Finance Minister trying to bait tax defaulters by giving them an amnesty on their fines on the other.

This candle has come to the end of its wick.

Ch Vella

Sep 6th 2009, 09:11

The way it is this amnesty is unfair. Ok it’s not on what is due to the government but on the fines & interest. So what if instead of paying tax these employers or self employed got a VILLA or an expensive Boat or even an Exotic Car when there are people in need of medicine that our state of the art hospital is not ready to get for the general public cause its expensive ,so you have to get it on your own. So for me this is unacceptable to say the least and what is due is due and no amnesty but a sequestration of all property of anyone involved. After all many of these gentlemen have made statements like they’re going to cut jobs if COLA is given so they are careless of their employees as well.

The PN is there for the rich to get richer

fbonello

Sep 6th 2009, 09:10

Kont nahseb li l-PN inbidel. Sew jghid il-Mlati li "Hanzir taqtalu denbu..................

Emanuel Scicluna

Sep 6th 2009, 08:00

That's why defaulters and criminals always preferred the PN. This government is renowned for giving amnesty.

Galea. L

Sep 5th 2009, 21:26

malcolm seychell
Tassew li ma tafx x'int tgħid.

Those 600 million include arbitrary assessments which are contested. So how does the government think that those who contested their assessments are going to fall for its trap?

j cutajar L-Affarijiet m'humiex b'xejn għax inkunu ħallasna t-taxxi qabel għalihom ghax il-ħaddiem it-taxxi jinqatgħulu mill-paga qabel il-paga tasal il-bank. Ara dawk tal-jottijiet u cabin cruisers kollha jieħdu sa' l-inqas oġġett b'xejn minkejja li jiżolqu mit-taxxi għax jafu minn fejn jgħaddu. Tassew li meta d-Dipartiment ikun qed jinvestiga lil xi ħadd kemm-il darba jċemplu xi kbarat kbar ħafna u jgħidulhom biex jinsew kollox? Tassew li meta d-dipartiment kien qed jinvestiga lil dawk li għandom jottijiet u cabin cruisers u proprjeta' li qatt ma jista' jkollhom skond ma jiddikjaraw fil-formola tat-taxxa sabu ĦAJT PARLAMENTARUI quddiemhom u kellhom jieqfu? Tassew li numru sostanzjali ta' numri tat-taxxa ma jaqblux mad-database u huma foloz?

Robert Callus

Sep 5th 2009, 20:55

@Malcolm Seychell
Mhux ha nidhol fil-merti ta x'inu l-ahjar bejn kapitalizmu u socjalizmu ghax argument twil, u mhux il-punt.
Pero li tassocja l-PN mas-socjalizmu (aktar u aktar fuq haga bhal din) hi daghwa. Tahseb li dawn li evadew it-taxxa huma t-tipici haddiema Maltin? Liema partit socjalista jhalli daqshekk loopholes biex min jimpjega ma jaghtix drittijiet lil impjegati tieghu (ez tahdem fuq 40 siegha fil-gimgha u tigi kunsidrat part time jew self employed, ma tkunx tista tissieheb fi Trade Union etc?). Affarijiet li qed jaghmel il-PN bhalissa. Dak hu s-socjalismu?

J S Borg

Sep 5th 2009, 20:52

According to my late father there is a very easy solution to this problem: He used to say: Give credit and a bonus to those who declare a fair income and penalise and charge those who declare a miserable profit.

A Zammit

Sep 5th 2009, 20:01

I have always voted PN. This scheme is a slap to the workers whose salary get taxed and money deducted even before the salary arrives to the Bank. This is an offence to all workers. Crime does pay in this country. Whenever I go to Birgu and look at those yachts I ask to my self "How can someone afford one of these?" Well the Mr Minister gave me a possible answer.

Arrest them all Mr Tonio Fenech and you will see how they will pay their dues back. Not paying tax is a criminal offence. 600 million euros are no joke. Just implementing such scheme to make good for the recession is stupid to say the least.

If the amnesty is implemented and goes on, I will have no amnesty for PN next time round.

Margaret Pace Bonello

Sep 5th 2009, 19:06

I can't believe that once again people who have totally ignored the law, mainly people with no principles or civic duty, have come out on top.
While employees have their tax reduced before they even see their paypacket, ( and rightly so because we should all pay our dues ) others,whose tax and contributions should be paid in directly to the relavent departments, now get to pay only 10% of what they owe in fines and interest simply because of the government's GROSS inefficiency ONCE AGAIN.
Minister Fenech said that many would say the scheme was unfair; you'd better believe it, Mr Fenech! It is unfair because, had the government done its job efficiently as governments should, our deficit would not only be looking brighter but we would all be laughing.
Take it from me, I think you've pushed us once too many.
Think again, Minister!

malcolm seychell

Sep 5th 2009, 18:45

@ Robert Callus.

Is socjalismu jincentiva l abbuz u l injuranza. li tkun taf li taghmel x taghmel fis socjeta, dejjem se ssib l ghajnuna tghin lil individwu biex qatt ma jimxi mall ligijiet u jirsisti.

ghanda living experience ta socjalismu, jismu Gordon Brown, fejn hu u siehbu Blair irrovinaw pajjiz f 20 sena u miraklu biss jista isalva dan il pajjiz.

Kieku il Pn verament jimxi fuq twemmin nazzjonalista dawn il flus ilu li gabarhom snin, u taxxa setghat tonqos qabel

Muscat.P

Sep 5th 2009, 18:22

Vera pajjiz tal-Mickey Mouse gibtuh!

G. Sultana

Sep 5th 2009, 17:45

Better gave the discount to the faithful and stupid tax payers who finds their wage reduced on every paymant.

V. Aquilina

Sep 5th 2009, 17:06

I can't help but noting that when the Machiavellian politics of "the end justifies the means" prevail, it is likely that trust in policymakers will continue to diminish.

Whoever said that the law is equal to all?

Robert Callus

Sep 5th 2009, 16:26

@Malcolm Seychell
''Socialism in the Nationalist party, is going to be its biggest downfall in its history.''

What socialism are you talking about?? This is the exact opposite. An in your face 'don't care about the honest worker, let's appease the greedy'

@J cutajar

Like many other Maltese I've always paid my taxes and do not use social benefits (or use them if necessary for some). Obviously I don't complain my parents were given children's allowance to help them raise me up. But believe me the one's contributing most to the deficit are not my parents. They are people who have much much more than needed to live comfortable but their greed leads them to break the law, seek tax havens etc.

Ray Buhagiar

Sep 5th 2009, 15:56

Sur Ministru tal-Finanzi,

Ghid appa...

Il-vot skapa!!! LOL

c. camilleri

Sep 5th 2009, 15:55

Lets be honest. All those who are castigating the Minister for giving an Amnesty to income tax defaulters are only doing so because they are not in position to do the same. If they had the change they would have done the same or more. There are many other ways of cheating the Govt such as receiving undeserved social services, Govt employees not giving their full days' work, etc. So it is just that before one rush to condemn others has to see whether his kettle is black too.

Alexander Brincat

Sep 5th 2009, 15:47

What a pathetic and sad way of fixing the already dire government financial position. So first you get the country bankrupt by overspending in the public sector. Then you harm the economy by introducing ill thought financial and fiscal measures, making businesses lose money and employees their jobs. Finally you try to save your finances by giving amnesties for defaulters who did not pay their tax (and most often also PAYE/FSS) dues to the CIR. It is kind of unfair. You default you get rewarded. You pay on time, you get penalised. Please Dr. Gonzi, why be so unfair on law abiding and honest people and businesses who pay their dues on time. Will the latter get a bonus or tax credit for being the only ones you can count on to save the government and all its inefficient practices.

Also well said Dom Chircop.

c. camilleri

Sep 5th 2009, 15:29

If the legal way of chasing defaulters is long with risks of money not being collected why not change the law and make it workable. We follow other countries in many things.Why not learn from other countries such as USA and Uk (where tax collection is taken very serious), how to collect the money in time and how to deal with defaulters.

why not see what other countries do such the USA and UK where tax defaulters are heavily dealt with.

j cutajar

Sep 5th 2009, 15:09

You guys are only moaning because the system dosn't allow you to do the very same thing you're complaining about ..I'll bet you given half the chance you'd all be doing the same thing.
Issa imbilli you pay taxes then sponge off the government for social benefits & free this & free that..umbghad joqodu jeqirdu li hemm deficit..mhux ovvja tridu kollox bxejn

Mike Magri

Sep 5th 2009, 15:00

`Dearest` GonziPN & Co.,

In my openion, the DEFAULTERS in this case, are NOT, in a way, those who somehow or other did not pay their Due Taxes in time.... BUT The GonziPN Government, The Prime Minister, The Minister of Finance and the Commissioner of Inland Revenue...TOGETHER..., for NOT legally collecting these dues in a reasonable time, but instead dragged their feet, all aloooooooong these last 11 years for God Knows Why...!!!! So much so that the sum due is an ASTRONOMICAL 600 MILLION EUROS..!!!!!!!!!!!!!!!!!!!

This only continues to prove, (if ever we needed one), that at least since 1998, all PN Governments, and especially those under GonziPN Regime, have and are governing this poor Country of ours, in a Management By Crises manner, by acting hubhazardly careless, amaturish, and Irresponsible to the Law Obiding Citizen...

We Law Obiding Citizens of Malta and Gozo, DESERVE and DEMAND a much better Governance from Catille especially when it comes to the management of our Finances.. So Far we have DESOLATION AND DISASTER IN THE DEPARTIMENTS OF VAT, INCOME TAX, SOCIAL SERVICES and only God knows what in other Authorities and Departments....!!!!!!

I..S..T..H..U.. Jekk Tafu Kif......!!!!!!!!!!!!!!!!

AMNESTY... MY... FOOT... Sur Mine(i)stra(u)....

Reginald Wiltshire

Sep 5th 2009, 14:17

Looking at the various comments below, it strikes me as a big headache for the ministers, who wants to be a politician? is it all worth it, boy i am glad i am not one of them(?) not them them but them know alls.i hate politics and dare i say the politicins, still they all go 6 ft. under earlier then most due to the stress, goes with the job you know- have fun!

Nigel Lawrence

Sep 5th 2009, 14:11

Once again, those who abuse the system are rewarded while the rest of us who go by the rules are penalised. Bravo GonziPN!

R.Mifsud

Sep 5th 2009, 13:59

History keep repeating itself. I stand to be corrected but this is not the first time that an amnesty for what is due to the Inland Revenue was given. I think now is the time to get things rolling and do something about this situation. If this time this amnesty does not get things moving, freeze accounts and issue garnisee. Thats what the VAT department did 2 weeks ago.

What about the 31000 vechile licences that are still not paid. I hope that after the statement by ADT someone will not tell us that these cars are for sale and are idle in showrooms. If so, these taxes are they due or not?

It is about time we get our house in order an start taking action and hope that all political parties take the same stand.

malcolm seychell

Sep 5th 2009, 13:36

I am sure that the last few months were terrible for Tonio Fenech because of the recession and nobody wanted to be in his position.
Although in principle this measure can be seen as good it is once again sending the wrong message
In Malta if you break the law you can discounts.
Socialism in the Nationalist party, is going to be its biggest downfall in its history.
Honest people cannot take it much longer and this applies for both parties.

fbonello

Sep 5th 2009, 13:12

Well the self employed and employers get an amnesty for evading the tax and I get just a short statement from the pharmacy of my choice to go to Mater Dei as they do not like clients with pink cards and "sorry, Out of stock " at Mater Dei. Who said, we pensioners and chronically ill have everything for free !!! If you want to live more just buy them

Galea. L

Sep 5th 2009, 13:06

GiovDeMartino
How about seeing a very old person being called at the IT Department payments section to pay a few cents, if I remember correctly some 5 or 7c? I was there and he was told that they should not have sent for him and his few cents. So much time and money wasted following a few cents and yet it is rumored that when the IT Department started investigating those with big yachts, cabin cruisers, vast amounts of property etc which they cannot by any stretch of the imagination have on the basis of their IT returns the Department met a PARLIAMENTARY WALL.

S.Cutajar

Sep 5th 2009, 13:01

Dear minister,

This is really unfair. This amnesty is an other BIG POLITICAL MISTAKE in a long list of never ending FREJJEG your administration has committed in the past weeks. A few years ago I used to follow your party by voting PN since I taught that your party not only preached JUSTICE but effectively PRACTISED it.
Now it is the other way round Mr. Robin Hood. You commit daylight robbery by insulting the law abiding taxpayer by creating such a scheme and by searching for all possible excuses in order to give such a prize to these THIEVES. Sympatising only with those who abuse the social services system, do not pay the tax due, do not give a proper day work (approve their promotions!!) etc...

SHAME ON YOU DR. FENECH for approving such a robbery!!!!,

@T.Borg

DAN HU PAJJIZ TAL-MICKEY MOUSE GHAX GHANDNA NIES BHALEK LI JAQBLU LI L-POLITIKU GHANDU JREWWAH L-ABBUZ BILLI JIPPREMJA LIL MIN SERAQ GHAX MA HALLASX, ANKI FI ZMINIJIET DIFFICLI BHAL DAWN. IL-COLA GHANDHA TIGI MOGHTIJA LIL MIN KIEN ONEST BISS!!!!
Who is holier than the Almighty the taxpayer or those thieves who do not pay in time the tax which is due?

N.Calleja

Sep 5th 2009, 12:48

How surprising indeed! The GRTU have remained mum on this issue, simply because business people are going to benefit from this idea! We honest tax-payers are never given amnesties! We have always paid to the last cent before even receiving the monthly cheque.!

Rocco Cauchi

Sep 5th 2009, 12:39

What government is really saying is:
"This is a mini-budget and we are trying to cover the e60million revenue drop iby recouping some of the e600million due since department's inception 1948. Sorry the way it is, do not blame us or any previous administration of whatever hue, but the fault is we tend to please too much the electorate and leave problems for the day after. We could not have funded further employment in our departments because of the shortfall in revenue and we could not collect the due amounts because our staff lacked full complement in an ass-chasing-tail situation. Sorry for the inconvenience caused by successive governments since 1948, including the Orwellian double-talk date of 1984, but what the nation is actually going through, including a e1.7bn national debt, is due to defaulting taxpayers with yachts, luxury cars and foreign accounts to their credit. In the budget we shall be explaining further that something must be basically wrong in the state of ... Malta, and that governments should not be blamed for it alone but also ever-moaning electors. You can also understand percentage reductions are not our idea: they are full-bodied European and we have to comply. "

Dominic Chircop

Sep 5th 2009, 12:37

Rather than touting the figure of 600 million euro tax due, can the Minister, or the CIR, for that matter, provide us with a breakdown as per below:

What amount is pre-1998 and post-1998 ?

Of the pre-1998 amount, how many is under objection ?

Of the amount of post-1998 tax, what is the element of "pure tax", omission tax, and penalies ?

Does the Revenue in future intend to amend the extent of additional tax for first, second, third and more omissions ?

Are taxpayers who are presently under investigation by the Tax Audit Section to benefit from the announced amnesty ?

Does the Department think it can ride rough-shod over taxpayers' rights to object to best of judgement assessments ?

Will the Department beef up the Boards of Special Commissioners, so that the huge backlog of as yet undecided objections be settled ?

In the letters to be sent to defaulters, will the Department be honest with taxpayers and indicate to them that pre-1998 tax could be prescribed ?

Unless answers by someone in authority are forthcoming, I fear this amnesty will fail abjectly, as did other forms, e.g. Section 22 and Section 9A.

Intelligent debate, please !

E. Azzopardi

Sep 5th 2009, 12:19

Very simple. This does not make sense. It does not concern me if the minister himself complains.
Taxes must be collected on time. And this goes for EVERYBODY. Where finances are concerned there should be no exceptions.

Wally Jenkins

Sep 5th 2009, 12:18

That reminds me i must get the latest DVD of Mork & Mindy and also ofcourse Micky! Supermouce alias Miky Mouse. well i'm in the right country so i shouldn't have any problems unless they are out of stock due to the many requests especially Micky Mouse.

martin said

Sep 5th 2009, 12:02

I will repeat. The worse finance minister in recent years.

Why not offer a discount to people that pay on time. NO this would not cross your mind as otherwise our govt would go bankrupt.

This is not the first amnesty. Doesn't any law cover these problems and if there is why aren't they applied.

Some justice please before going on making the rich get richer and the poor get poorer.

Louis Spiteri

Sep 5th 2009, 11:55

To be more exact the actual figure as shown in the 2007 Audit Report is 764,312,807 euros (Lm328,119,488) whereas on the 31/12/1987 the amount of arrears was Lm 95,515,587. Readers would certainly be interested to know whether and when this matter has been investigated by the Public Accounts Committee which was set up in 1995.

Randolph Peresso

Sep 5th 2009, 11:54

Defaulters still have to pay the full sum of income tax owed to the Inland Revenue plus a 10% fine.

Having said this, our political class, spearheaded by the government, should find the right mechanism so as to collect all of its income tax in a reasonable period of time.

GiovDeMartino

Sep 5th 2009, 11:50

I am partly responsible for those 600 MILLION! In fact though I have spent all my life working on a fixed salary, and though it wasw up to the authorities to decide what the rate of my paye should be, and though there was time when I fervently begged them to increase the rate and I even wrote the the minister concerned (Profs Josef Bonnici) and though my pleas always fell on deaf ears my pleas TO PAY MORE.....18 months ago I was informed that I still owed them 20 euro for the year 2000. And on those 20 euros I was fined another 17 euros....I paid the 20 euros immediately but I contested the fine.

T Borg

Sep 5th 2009, 11:39

I think a lot of generalisations are being made. It's utterly UNFAIR to brand all persons having outstanding penalties and interest as dishonest and not law-abiding. An octagenarian relative of mine had his tax return audited because he genuinely omitted his investment income from his declaration since he thought they had already been taxed at 15%. He had to pay the tax thereon which he did but was penalised with a fine and interest amounting to more than the tax involved. It's utterly insulting to brand such persons as dishonest! This scheme makes justice with at least these persons, which are not few, since the law does not discriminate between intentional and genuine mistakes. Unfortunately the whole point of the scheme is being missed by most comments made by people who think they are holier than the Almighty! Please let's put politics aside. These things do make our country a "pajjiz tal-Mickey Mouse!". Let us grow up!!

D.Galea

Sep 5th 2009, 11:35

I assuming that the persons that do not pay the income tax are the self employed/business persons. Normally the income tax of employees are reduced by the employers directly. I think that the employers Association is pleased with the scheme!!!!
THE EMPLOYERS THEN ARE FINDING PROBLEMS TO GICE THECOLA. THEY CAN EASILY PAY THE COLA WITH THE MONEY THAT THEY WILL BE GAINING FROM UNPAID TAXES

Christine Vella

Sep 5th 2009, 11:24

Most unfair. This only tells us that the Government can't handle these people, no guts to take them to court, to take over their yatchs, their luxury cars. Yes these people can afford to buy all these things because people like you and me pay our taxes and theirs. At the end of the day we are paying for them as well because our taxes can never be reduced at this rate. thank you very much for making me feel bad because I am good. and you out there, have a good laugh at our expense, I don't blame you. Maybe if you do not pay your social security stamps, your water and electricity bills, you will get away with it as well.

Tonna J.

Sep 5th 2009, 11:15

.....and we workers and pensioners could not escape without paying our tax. Thanks to PAYE.

Victor Laiviera

Sep 5th 2009, 11:15

So crime DOES pay, after all.

mario bezzina

Sep 5th 2009, 11:13

dear mr minister, the Government is spending without limit and the deficit is proof, these people do not pay tax, and for all i know, they perhaps own some property, or a big yacht or investing their money to increase their own business and they will continue to do this since they got away with it. The long court cases is an excuse, so use your power and show these particular people, to stop playing games. mr Minister, you know these people, so a visit from you in person, will help and perhaps a helping hand from the leader of the opposition. Both of you should tell them " we love you but we love the country more"

Sandro Rapinett

Sep 5th 2009, 11:10

And I have to pay an oustanding bill (dated 2008) to the IRD by the end of this year!!! Or will have to pay interest at 1% per month!!

In 20 year's time the value of the amount I owe today will become 20-30% less!!! Less 90% discount on the interest owed means it would be more conveniet to pay in 20 years time!!

Mr Fenech do you have a special offer on house loans!?

Galea. L

Sep 5th 2009, 11:06

edbarx bartolo
Well we do have a dishonest government don't we?

Carmel Caruana
Your father should not have paid because tax has always been limited to eight years prescription.

ALL EMPLOYED PERSONS PAY THEIR TAX BECAUSE IT IS DEDUCTED STRAIGHT FROM THEIR WAGES. SO EVERYONE KNOWS WHO THE DEFAULTERS ARE. EMPLOYERS AND SELF-EMPLOYED.

Carmel Caruana

Sep 5th 2009, 10:42

I am now feeling really stupid - having convinced my father, and OAP, to take a loan and settle his 1995 arrears + over 100% fine. He could have saved himself 25% plus interest if he just ignored my advice!! What a shameful administration!!

J. Mifsud

Sep 5th 2009, 10:42

Dear Minister,
In your party's electoral manifesto it was promised that the TV License will be abolished. So far nothing materialised.

Can you please illuminate me on how many households are paying this tax?

I have a feeling that, we, the ones who are paying this unjust tax ( in most cases paying for two to four TV's), are making up for the ones who are avoiding it.

Whilst I am at it, can you also tell me when are you abolishing or deduct the tax on credit cards? Do you remember the hullabaloo of your party when Dr Alfred Sant introduced this tax?

But alas, the General Elections are a couple of years from now!!!!!!!!!

N.Borg

Sep 5th 2009, 10:32

These are incentives to evade taxes.

Joseph P. DeGiovanni

Sep 5th 2009, 10:30

Yet once again we hear defaulters crying out victory. Such schemes only help to encourage more people to join the ever growing "Defaulters' Club". Honest citezens have to carry the burden, as always. It is indeed a shame that these schemes are offered to those who do everything in their power to evade income tax and yet are first in line to claim benefits from the Government.

J Brincat

Sep 5th 2009, 10:29

And poor me has paid all taxes when due whilst defaulters are having a field day!

Veru pajjiz tal ''mickey mouse'!

stephen caruana

Sep 5th 2009, 10:26

Here in MALTA those who breached the law have gain the way but those who not, have been stucked!! pero min jaf x'irrid nghid bil-malti pur iktar jaghmel sens ghal din il-gzira !!

edbarx bartolo

Sep 5th 2009, 10:13

This amnesty corroborates the belief that dishonesty pays.

George Farrugia

Sep 5th 2009, 10:05

Dear Minister and Commissioner of Inland Revenue,
The government's amnesty to tax evaders is at the cost of those patients who need medicins and had or have to pay exhorbiant prices to buy them privately because the government is alwyas short of funds and has no bugdet for them and there is no government policy for tax rebates on privatley bought expensive medicines. It is really a case of robbing the good ones to reward the bad ones. Well done minister! Indeed your sense of justice is amazing.

J. Mifsud

Sep 5th 2009, 10:02

This is the thanks the law-abiding citizen gets from this ungrateful government for paying vat and income tax to the very last cent.
Well, in my ripe old age I am finally beginning to learn that, where possible, it pays the individual who manage to avoid the paying of taxes and thus he/she is also rewarded in the granting of social services and children allowances etc.

That is why I am totally against the means testing, as it is a known fact by all and sundry that most of those who receive social benefits are the ones who can bend laws to their advantage.
This is another nail in the coffin for this inefficient administration by the law- abiding mortals.

Anthony Mizzi

Sep 5th 2009, 09:47

"TAX DEFAULTERS" get amnesty, whilst the common tax-paying law-abiding citizen does not get refunded with the illegally charged VAT on car registrations and have to institute a court case to get what is legally theirs.

More like Cucooland than Mickey Mouse land.

j n ebejer

Sep 5th 2009, 09:40

another scheme which makes law abiding income tax payers the laughing stock of the country. Just what we needed as a morale boost.