While defrauding the State, at the expense of the taxpayer, is condemnable, it is clear the government is going all out to recoup as much as possible outstanding money due to the exchequer.

Following the clampdown on electricity theft and the renewed attempts at checking social benefit cheats, the government has launched another campaign aimed at making those who undeclared assets abroad to repatriate them or declare the income they get on them.

In doing so, however, the government has run into a bit of rough weather, not at all unjustified, though, in view of the warning given by the finance minister when launching the scheme.

Never mind the irony that, in the case of electricity theft, the government gave an amnesty to those who bribed people to tamper with their electricity meters. What also grates is that the repatriation scheme, with its concomitant warning that those who do not conform would be liable to face investigation, has come only weeks after the revelation that a number of MPs, including the finance minister, had failed to present their declaration of assets in Parliament according to the MPs’ code of ethics. For this reason, the minister’s warning has ruffled the feathers of those who quite rightly believe that MPs ought to lead by example.

Running for public office presupposes thorough knowledge of all its ramifications. It was therefore completely unacceptable on the part of the finance minister to say that he had been unaware that he was expected to submit a declaration of assets to Parliament.

According to one newspaper report, there were 15 Labour MPs who had also failed to submit such a declaration. This is shameful, particularly from members of a party that had preached correctness so much before the last general election. But it looks as if the party is throwing all values to the wind.

A reader who responded to the news item online put it succinctly when she said: “Could somebody please inform our MP of his duties and obligations? I wonder what would happen to any of the rest of us if we were to conveniently be unaware of our obligations towards the CIR.” The finance minister made it clear what would happen: those who do not conform would be liable to face investigation and, to drive the point home, he even pointed out that the EU Savings Directive empowered the Commissioner of Inland Revenue to ask for information on assets and income.

The directive, first adopted in June 2003, strengthens EU rules on the exchange of information on savings incomes. It is aimed at enabling the member states to better clamp down on tax fraud and tax evasion. Applicable since 2005, it requires member states to exchange information automatically to enable interest payments made in one member state to individuals of other member states to be taxed according to the laws of the State of tax residence.

The directive was revised in March this year to close loopholes and make it more effective. Rules have been “enhanced” to prevent individuals from circumventing the directive by using an interposed legal person (for example, foundation) or arrangement, such as a trust, situated in an EU member State.

Brussels is therefore going all out to help member states check tax evasion, a matter that some members have taken up with great vigour.

The only problem with the launching of the latest scheme in Malta is its timing; it comes too close to the revelation that a number of MPs had not submitted their declaration of assets to Parliament.

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