Updated: Court orders €6,921 tax refund on second-hand car
(Adds PL statement)
Transport Malta has been ordered to refund €6,921 to a couple who bought a second-hand Landrover Freelander from the UK in 2007 for €3,693, on which they were charged €9,783 in registration tax and €1,761 in VAT on registration tax.
The refund was ordered by Mr Justice Anthony Ellul this morning in his decision on a civil case filed by William and Anna Grech against the Transport Authority, the Prime Minister and the Transport Minister.
The sum the court ordered the authority to refund the couple is the difference between the €9,783 they paid and the €4,622 they should have been charged as well as the VAT on registration tax.
The couple claimed that despite the fact that their car was registered in the UK, which is an EU country, they were asked to pay a registration tax of €9,783, as well as VAT on registration tax amounting to €1,761 on the car’s arrival in Malta.
They paid the money under protest and reserved the right to take legal action, which they did.
The couple claimed that, by demanding the payment of tax, Transport Malta was in breach of an article in the EU treaty that said that no EU member state should impose an internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products, on the products of other member states.
They also called on the court to find that it was illegal of TM to request VAT on registration tax.
TM and the Prime Minister denied that the EU treaty had been breached.
In his decision, Mr Justice Ellul noted that when the couple bought their car, the law established a 65 per cent tax on imported second hand vehicles or a minimum Lm4,200.
The authority valued this car at Lm3,053, that should have translated into a tax of Lm1,984 (€4,622).
For although the law then established a minimum of Lm4,200 registration tax, this was in breach of EU regulations and was later changed. So the court ordered the authority to refund the couple the €5,160 - the difference between the €9,783 they paid and the €4,622 they were meant to have been charged.
The court also ordered the authority to refund the VAT on registration tax as the authorities’ failed to justify the imposition of VAT on registration tax when it came to importing second hand cars from EU member states.
PL STATEMENT
The Labour Party said the court’s decision confirmed the Labour Party’s argument that the VAT on registration tax GonziPN imposed was illegal and against EU regulations.
The PL had collected 17,000 such cases and presented a court case, which was in process.
The court’s decision, the party said, strengthened its argument while GonziPN insisted it would not give the money back.
A new Labour government would address this injustice which was now also acknowledged by the court, the PL said.
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J Tabone
Sep 22nd 2012, 00:40
ok guys, if anyone out there is considering importing a car from the UK, wait till the next election, when PL is elected, you might get a subsidy let alone not paying any taxes
Mr Andrew Camilleri
Sep 19th 2012, 12:34
About time Minister Tonio fenech spoke about this situation. Has anyone seen him around - or is he watching football out of Malta with some nice wealthy friends?
Mark. Galea
Sep 19th 2012, 11:12
jekk fhimt sewwa, meta jitla l-PL fil-gvern, ser jaghti dawk il-50 miljun lura. Jekk il-PL kuntent, kuntent kulhadd. (Anki jekk il-PL jaf li ser ikompli jhaffer il-hofra iktar - ghalhekk HofraPL)
Louis Agius
Sep 19th 2012, 10:43
ok , so at the end of the day , WHAT DOES THIS ALL MEAN ? What about the persons who are in the process of importing a 2nd hand car ?
A Micallef
Sep 19th 2012, 09:57
http://www.timesofmalta.com/articles/view/20111028/local/EU-closes-five-year-case-over-car-registration-tax.391146
I don't know, but wasn't this VAT case closed once and for all by the EU?
Mario Camilleri
Sep 19th 2012, 09:46
Il-problema issa kibret. Min ser iħallashom lura dawk il-mijiet t'eluf li issa t-TM u l-gvren nefquhom Alla biss jaf f'hix. Żgur mhux dawk li ffangaw u għixu fil-lussu!
Issa mhux aħna bil-vettura tagħna rridu nagħmlu tajjeb għall-ħniżrijiet tat-TM u l-gvern, jispiċċaw isalbu lilna!!
Matthew Grima
Sep 19th 2012, 09:43
What's going to happen to those that just don't know any better and get ripped off left right and center?
Does everyone have to go to court on their own? Why is there no investigation?
Michael Debono
Sep 19th 2012, 08:44
And u really think TM will pay even though they lose an appeal?Somehow i dont think so
Michael Lawrence
Sep 19th 2012, 00:55
At last common sense.
It was illegal once Malta entered the E.U to continue to charge registration tax.
Now watch as the E.U will stop the subsidies Malta recieves because of the continous corruption and breaking of E.U laws that go on here.
Mr Albert Dimech
Sep 18th 2012, 22:57
Great news that means I will get my refund after all. Is Tonio going to tell us the JM was wrong again now?
Joyce Sant
Sep 18th 2012, 21:33
It is not just the foreigners in Malta who import their cars that find themselves unfairly charged extortionate amount of money but also those locals who like so many have gone to other EU countries to buy second hand cars only to be penalised when bringing the car back to Malta and paying the so called "Registration Tax". Registration Tax in other European Countries is charged at a minimal cost. Malta is the exception to the rule!!!! and has been allowed to get away with it for far too long.!!!.....TM and Government know full well, that what goes around, comes around.......I sincerely hope that this does not end here but that the law will look into the unjust system currently in place, refund all those who were unjustly and so unfairly charged!
J.Sant
Today 21.30
Paul Preston
Sep 19th 2012, 10:08
Well said Joyce .. I totally agree !
A Vella
Sep 18th 2012, 21:12
I am so looking forward to see Joseph and Karmenu (or Edward) in their first budget juggling between giving the EUR 50million back to these 17,000, reintroducing W&E bills, plus many other giveaways, and keeping the budget deficit below 10%.
Stephen Grech
Sep 19th 2012, 10:14
So in your opinion, people should be made paying such taxes ux.?
A Vella
Sep 19th 2012, 10:46
Definitely not, I am with you on that being by far a net contributor. But certain things will do more harm trying to turn reverse them back and promising reimbursements and subsidies when Malta at this sensitive period has to stay clear from any negative expectations regarding debt sustainability. That yes is more important for the well being of myself, yours and future generations. We all paid higher taxes for our cars, pre and post EU, this is mostly a political gimmick and if any reimbursement is provided it will be comical I assure you. Why doesn't someone ask whether Joseph Muscat once Prime Minister how he intends to pay these citizens back? Cash, some kind of credit?
Stephen Grech
Sep 19th 2012, 15:15
I would ask the Prime Minister, why did he insist that we pay such taxes after going the EU even though people rightly so complained.
Kindly remember that PN not only introduced these shameful registration taxes, but also made us pay VAT on it and increased road licenses from the old Lm 20 per year to € 500 + for family diesel cars.
A Vella
Sep 19th 2012, 21:09
Typical Maltese citizen reply, answering one problem with the mention of other problems. I told you it is not right that we pay so much high taxes, but what are the net effects of reimbursements, now today EUR 50 million, where will they be funded from? Saying that previous governments caused it is not good enough for common mortals like me.
And let's not forget that the more people paid, the more they could afford it. The costs of reimbursing them are by far too high, gosh aren't you supposed to be socialists.
Albert Zammit
Sep 18th 2012, 21:05
Decizjoni tal gvern li kienet ilha tirrepeti ruha snin shah...Minflok jemenda li jkun hemm bzonn, il-gvern tal-gurnata jibqa jwebbes rasu biex tghaddi tieghu. Haseb li huma figuri biss! Dawn flus hajjin. Specjalment jekk huma tal-haddiema.
Prosit ghall koppja li issa hija wahda mil-pijunieri tat-tibdil misthoqq.
U nghid jien, allura koppja ghamlet din il-mewga, w l-eluf l-ohra f'daqqa m'ghamlu xejn?
marc pace
Sep 18th 2012, 20:58
a new labour government will not address injustices but create more...this goes to show from the lack of politeness in addressing the prime minister!!!!!!!
Eddy Privitera
Sep 18th 2012, 22:40
Marc Pace: Jaqaw ma smajtux lil Gonzi jiddiskrivi lill-Partit Laburista bhala " medicina li tmarrad " ?? Dik " politeness " eh ????
Charles Muscat
Sep 19th 2012, 01:14
You must be one of those who whatever your party do is all good. You must admit you are as wrong as your PN. What right this gov. has to impose VAT and tax duties especially within the EU?
You need to open your eyes and learn to be able to choose right from wrong.
c scudi
Sep 18th 2012, 20:51
Although it is welcome that the court decided that a refund should be given to tis couple,it would be interesting to find out how many millions of euros,the governemnt has collected in between.
The labour party said it has over 17000 cases of this,which ot will address,if they get into power.Am not sure where they,re going to find the money to refund all these people!!
Michael Bugeja
Sep 19th 2012, 06:31
Dik tbezzani, min fejn se jgibhom is-sur muscat, plus li nighdu sibna hafna hofor, insomma miskin il-haddiem ,qalbi tugghani meta nisma jew naqra, li transport malta,jew il gvern wehel multa jew irid ihallas, jahasra xejn xejn xejn ,min buthom ,imma t-tax payer irid jaghmel tajjeb
Jana Vella
Sep 19th 2012, 07:55
@ Michael Bugeja
Allura la qed tibza minn fejn gejjin il-flus...qed tammetti li m'hemmx, ghax skond Tonio qeghdin tajjeb fil-flus! Plus, kieku xi hadd jisraqlek il-kartiera u tinduna, ma titlobiex lura bil-flus b'kollox??
Jessica Smith
Sep 19th 2012, 08:15
Michael Bugeja min jisraq irid irodd lura.
Dak li ghamel Gonzi huwa SERQ minghand il-poplu u min jisraq huwa HALLIEL.
A. Borg
Sep 18th 2012, 20:45
Most probably the TM will appeal about this decision and the appeal will be decided when PL will be in Government and the promise Joseph Muscat made to refund all those who paid VAT on registration tax will be concluded.
E. Curmi
Sep 19th 2012, 09:32
When the PL..its better you say if the PL!!??
francis x caruana
Sep 18th 2012, 20:36
as far as we have been told ZMIEN IL BUZZILOTTI is over,the only thing is that we have the minister and gonzi pn who ae masters of this.And we the pupazzi who has to py for all of it
Lawrence Fenech
Sep 18th 2012, 20:35
Il-vera Gonz with the wind.
Manuel Scicluna
Sep 18th 2012, 20:34
Another blow to GonziPn, you are again condemned of another daylight robbery. First the Satellite dishes and now the vehicle registration tax.
michael scicluna
Sep 18th 2012, 20:18
Mela ghandu ragun il PL!
Francis Raeymaekers
Sep 18th 2012, 20:13
Well done!
Lets now talk about utility charges and blatant discrimination of non Maltese EU citizens. What is the PL's policy on that?
c scudi
Sep 18th 2012, 20:52
We are just cash cows!!
Mr leo attard
Sep 18th 2012, 20:05
funny how the govt keeps on insisting it isn't doing anything wrong when a judge tells him otherwise ..... just like he doesnt accept it when he is told that malta has a high cost of living!
David Pace
Sep 18th 2012, 20:04
The whole registration system is wrong in Malta, thougsands of euros to register a vehicle in Malta yet only 55 pounds in the UK and we are told Europeans are supposed to be equal? a complete blatant rip off !!
Well done for making an effort in this case.
E. Curmi
Sep 19th 2012, 09:33
Yes however when you compare the insurance premium and the road tax we are far lower than our Eu counterparts!!!
mark borg
Sep 18th 2012, 19:44
gonzipn -public enemy number one
Ms. P.M Graham
Sep 18th 2012, 19:31
Between this mess and the ARMS mess I would think Mr Gonzi is hoping NOT to be re-elected, because the bubbles are bursting. I just hope Mr Muscat, if elected knows the mess he is taking on.
Did I read today that the government is hoping to get EU funds for the recent storm damage?? Strange how they will take, take, take, but at the same time rip off EU Nationals settling in Malta.
Mr Andrew Camilleri
Sep 18th 2012, 19:22
Not a good day for tax payers -first the court's decsions that a local council is responsible for damages sustained by a car when it hit a pothole, and now this. This is where accountability kicks in - if the people responsible for causing these damages were accountable, they would be more careful. As things are, they do not care. No penalty for taking bad decisions or not doing that which should have been done.
Mr J Xerri
Sep 18th 2012, 19:22
... and of course the reaction to this by the Government and its media would be to replay the tune: "that the Labour Party was trying to force the government to pay out money which would mean more taxes on the people." trying to put the blame on the Labour Party and not on the lack of foresight of the present Government.
R. Cilia
Sep 18th 2012, 19:15
TM is robbing Peter to pay Paul or should I say to squander more money?
Jessica Smith
Sep 19th 2012, 08:19
R. Cilia kieku inti xtrajt karozza u l-Gvern ta' Gonzi SERQEK kif ghamel lil dawk l-eluf kollha ma kontx tiehu l-flus lura? Jew kont tghidlu grazzi u ttih izjed?
Albert Farrugia
Sep 18th 2012, 18:47
L-aqwa li morna ntajru l-bandiera blu mimlija kwiekeb waqt il-meetings tal-PN! L-aqwa li morna nkantaw IVA ghall-Ewropa! My foot! This should be an important part of the LP' s electoral campaign: to dismantle the claim that the PN is "pro-Europe"! Pro-Europe only to win elections, but when it comes to the nitty-gritty, it is as Eurosceptic as can be. Ask EU nationals who settle in Malta for some reason. The discrimination they face. And of course in this case of importation of vehicles.
Philip Hili
Sep 19th 2012, 01:08
@ Albert Farrugia
Tinsiex li Dr. Emails u la bella compagnia qablu issa ma l-Ewropa!!
E. Curmi
Sep 19th 2012, 09:35
if you think the PN is agiainst Europe , something must be wrong with you!!
Brian Fenech
Sep 18th 2012, 18:46
Landmark case, but wait & see... TM will surely appeal this desicion, and then the same old story, it will take ages for the case to be concluded on appeal. Good luck!
Keith Davis
Sep 18th 2012, 18:33
Another setback to this government's credentials!
How can an authority demand Value Added Tax on top of another Tax (Registration), is it not daylight robbery?
This besides the many other gaffes such as the 500euro rise for MPs, and many unactualised promises such as the national flood relief project not yet materialized. Oh well better do a new parliament building first, no?!
T Mifsud
Sep 18th 2012, 18:31
LANDMARK CASE!
Joseph N. Attard
Sep 18th 2012, 18:28
Amother big qassata by the PN, which it failed to correct even when the writing on the wall became clear Even now, when they are desperately trying to woo voters, they persist in their miserable miserly mistake. P.S. I declare my interest. Two fat VAT on registration tax to collect from the PL.
Mr Andrew Camilleri
Sep 18th 2012, 19:23
Yes, and we taxpayers will now have to pay a big price for this giant qassata!
Ronnie Callus
Sep 18th 2012, 18:25
Congratulations to Anna & William Grech who had the guts to take both the TM and Government to court. This all shows that Gonzi is not well informed about the EU laws as was the case of the Satelite dishes. This court sentence is a path forward to the other 17.000 ( Less one now) who are claiming their VAT back.
Mr charles azzopardi
Sep 18th 2012, 18:17
Ah so that is why the registration tax on second hand cars has been just increased by 2500-3500 Euro per car ...
denise hobson
Sep 18th 2012, 18:13
I am astonished at the way the Maltese government work and absolutely disgusting the Greed of these people is enormous, i suppose this is one way of discouraging people from abroad to settle in Malta, i had exactly the same about 5 years ago, i hope that many many more will get a refund for the illegal taxes imposed on private cars that were brought in and were originally registered and taxed in the country of origin, one chap so i was told that will put a stop to this monopoly is the labour leader Mr.Muscat, although i am not Maltese but if i had the chance I'll put him to the test. Malta grow up and learn to treat foreigners with a bit of dignity without robbing them blind. Definitely not amused by the present government's tactics. Daylight robbery, I know this -many expats now know it and so do the Maltese high and might money grabbers. Sorry to be so abrupt but i call a spade a spade and by Joe you chaps take the cheery on the cake for a small postie island.
c scudi
Sep 18th 2012, 20:56
The interest in foreigners is to simply bring cash to the Island.....We should apply the same methods to all the Maltese who came or come to live in the UK...
VV Bartolo
Sep 18th 2012, 18:07
so after all JM was right as in the case of the satellite dishes!!
Charles Micallef
Sep 18th 2012, 18:00
Congratulations to Anna & William Grech, for taking on the establishment and won !
Ivan Scicluna
Sep 18th 2012, 18:21
As from now the TM should be very careful - I hope everybody taken for a ride will from now take legal action without exceptions.
Mr Andrew Camilleri
Sep 18th 2012, 19:25
Ivan Scicluna: why should TM be careful? Its not their personal money; they can take any reckless decision they like without the least consequence- no loss of pay or job, nothing. Until there is accountability, decisions like these will continue to be made because these tin-pot gods like to show that they are ..... tin-pot gods.
Charles Micallef
Sep 18th 2012, 20:20
Andrew you are so right!
Daniel Borg
Sep 18th 2012, 17:47
Mela min kellu ragun?
Joseph Micallef
Sep 18th 2012, 17:33
I'm perplexed... Dr Muscat has been saying this for years and the ESTABLISHMENT tried to ridicule him day by day. Does this mean the HE WAS and IS RIGHT??
E. Curmi
Sep 19th 2012, 09:36
Right on what...taking the maltese people for a ride...wait and see the quality of life you will have if PL is elected...!
Carmel Farrugia
Sep 18th 2012, 17:11
For those who are happy, the money has to come out of our own pockets, one way or another.
Joseph Mifsud
Sep 18th 2012, 18:28
Yes Carmel the money did come out of our pockets already with extra tax we paid.
Willie Grech
Sep 18th 2012, 18:31
@ Carmel Farrugia.
Wrong. This is money illegally taken away from us from a government who, before the EU Referendum boasted that if one was to import a car from another EU country it was as if he was crossing from Malta to Gozo. Remember?
David Farrugia
Sep 18th 2012, 18:32
That is how injustice is paid. Thank the current administration for this blunder.
R Axisa
Sep 18th 2012, 18:39
@Carmel Farrugia - this money was originally taken from those 17,000 persons' pockets and only God knows what the government has done with them! This is now confirmed that it was daylight robbery by the government, self declared as holier than holier!
Mr Andrew Camilleri
Sep 18th 2012, 19:27
Carmel Farrugia: the money is going to come out of taxpayer's money for the simple reason that GonziPN is hard-headed and did not listen. All this could be avoided. Thank you Dr Gonzi for squeezing more out of us.
mark borg
Sep 18th 2012, 19:42
x ghandu x jaqsam?? allura ingustizzja bhal din tibqa ghadejja ?? allura ma natux pensjoni jew childrens allowance jew kull servizz socjali iehor bhall sptar bla hlas..ghax mit taxxi ...DAN X RAGUNAMENT HU ?
joseph azzopardi
Sep 18th 2012, 20:08
Carmel
Its our right as we have already paid this extra tax. At least we are not asking for compound interest which ultimately is only fair
justin spiteri
Sep 18th 2012, 21:37
Mela dr muscat was right. Tibzax johodhom mil pockets taghna. dak iz zmien kont xtajtx zewg karozzi allura ghandi nihu ta zewg karozzi ghat taxxa li kont halast. Zgur ha nihu aktar mili ha johodli. Mux hekk ghax gonzipn lewwel jamel froga umbad ilkoll ikolna nikluha mill froga tal gonz ghax umbad ikollu ibati kullhadd anke jekk ma tkunx xtajt il karozza ghax tinqasam fuq kullhadd!!
Paul Barrett
Sep 18th 2012, 16:58
I would have bought a new or even a more modern second hand car years ago if the "Registration Tax" and every other little hidden financial/bureaucratic extra or two had not been tagged on to what should have been a simple straight forward honest purchase.
Alfred Vassallo
Sep 18th 2012, 16:39
This government uses the EU as it suits them. BASTA QIEGHDIN FLOROPA U KEMM HA KONNA BENEFICJI!! . FEJN TAF???
Peppi Borg
Sep 18th 2012, 16:35
Joseph Muscat is right then.
Mr Tony Gatt
Sep 18th 2012, 16:33
Great- will they ever see the money, I wonder?!!
charles tabone
Sep 18th 2012, 16:23
And now Mr Tonio Fenech learns a lesson. No more pickpocketing!
Carmel Camenzuli
Sep 18th 2012, 16:21
Namel appell biex jiehdu passi kontra T.M anke dawk il-persuni li qeghdin jitilghu ghat-test ghal licenzja tas-sewqan u jigu swalifikati jew ghal ragunijiet zghar hafna jew jittrikkjawhom billi jabbuzaw mil-innocenza taghhom,per ezempju: Jajdulhom biex jidhlu fejn hemm il-venda ta' li sptar San Luqa, dak li jkun jafdhom ghax qieghed jghidilhom dak li jkun qieghed jaghmillhom it-test umbghad jghidilhom '' Ha nwahhlek ta' ghax hawn mhux suppost dhalt ''.
Dan mhux sew u mhux etiku. Gie li wahhluhom anke 3 darbiet u kull darba erga hallas sinjuri T.M. Il-Bambin jaf kemm id-dum thallas biex tiehu il-lezzjonijiet, umbghad tigi imqaxxar b'dal-mod.
Dan qieghed nghidu biex hadd ma jghid li ma kienx jaf b'dawn l-affarijiet.
Biex titghallem il-karozza il-llum qeghda tigi tiswa fortuna. Povri zaghzagh specjalment, li qeghdin jitghallmu il- karozza ghax ovvjament minn ghajr licenzja il-llum difficli jimpjegawk-Grazzi !
Giov DeMartino
Sep 18th 2012, 17:57
Naqbel mieghek mija fil-mija. Jisolhuhom qeghdin liz-zghazagh u mbaghad tibda tisma' hafna diceriji.
S. Camilleri
Sep 18th 2012, 16:14
So... Does this establish legal precedent???
Justin Spiteri
Sep 18th 2012, 16:14
God Does Exist.
Victor Rodenas
Sep 18th 2012, 16:09
More to come,....but since the Elections are coming,...anything goes.
Johnny Xerri
Sep 18th 2012, 16:05
The PM was a lawyer by profession...
He approved a reg tax & VAT on it...and denied that this was in breach of EU law.
The court proved TM & the PM wrong...
So we have a PM who is incompetant in EU law even though he pushed for EU membership and was a lawyer by profesion...
God forbid something like this was done by PL for it would be mentioned on NET TV for 30 years minimum!!!
R Axisa
Sep 18th 2012, 16:35
Kieku holl xaghrek u gib iz-zejt!!!!!!!
Mohabf Fahmi
Sep 18th 2012, 16:04
wow. that's a brave judge. well done and a very good precedent to set.
Mr Andrew Camilleri
Sep 18th 2012, 19:28
Nothing brave about him - he was doing his duty and applying justice.
Charlie DeBattista
Sep 18th 2012, 15:52
This was a couple who stood for their rights and it is about time we get someone like that in Malta. But what about all the other people who were robbed and did not decide to go to court? Will they be refunded?
Joseph Sammut
Sep 18th 2012, 18:53
There are those 17,000 who signed a petition and is awaiting the court's decision which decision should be forthcoming with this landmark decision.
Please choose the reason of your report below: