I write to add my name to those hundreds of people who have already opined about the ridiculous sentences given to those who have already pleaded guilty to the scam on VAT. I am appalled at such a light sentence and what this means to me is that the courts in Malta, whose responsibility is to apply the laws and not make them, have blatantly sent the people of Malta a message: Why make such a fuss about this VAT scam? Why pay VAT at all? If you get caught, the cost is so little that the savings of not paying or cheating on VAT is far greater and, thus, we the courts of Malta will protect you criminals!
Why do you think that most Americans fear the IRS and most declare and pay their taxes and are afraid of doing anything to cheat on taxes.
It is because the IRS will go out of its way every year to catch a "big fish" - and, once caught, widely publicise the US courts' pronouncement of heavy fines and harsh jail sentences.
The reaction of the average person would be: If they caught him/her and put them in jail, can you imagine what they will do to me! They caught Spiro Agnew, none other than the former Vice President of the country; Lorna Hemsley, wife of the hotel magnate who had declared and paid some $11 million in taxes instead of $12 million, spending three years in jail while her husband was sentenced but did not go to jail because of old age. And many others... This served as a major deterrent to all and sundry. The courts in the US were thus supporting the government in tax collection and applying the law.
As many would say: Only in Malta do we get such perversion of justice.
Last summer, in Rome, a popular Italian restaurant cheated a Japanese couple by charging them some €700 for a dinner for two. The couple paid and then reported the restaurant and the media picked it up. The authorities closed the restaurant down and apologised to the Japanese couple by inviting them back to Rome at the Italian government's expense. I understand the Japanese couple declined the invitation saying they should not be a burden on the Italian people because the Italian government was already in substantial financial deficit.
Now who will apologise to the Maltese people after a number of people appeared in court and confessed to defrauding the VAT Department at our expense? Should I have read an apology in the suspended sentence?
I hope the Attorney General appeals the sentences and the future presiding judge assumes his/her responsibility to society and to the laws.
As for myself, I did read the press reports and noted some of the names of companies or establishments whose owners were arraigned and pleaded guilty.
I myself did carry out my own sentence as I was appalled that certain establishments I had frequented in the past were involved in this crime and found guilty.
Therefore, I have decided to boycott such establishments and take my custom elsewhere. I hope others will follow suit. Crime should not pay!
When the euro was being introduced, establishments/shops that had entered into an agreement with government to keep their prices in line with the euro/lira parity rate and respect it displayed stickers on their shop windows saying: "Fair Price". The court should, apart from giving such people a harsher sentence, also order that their establishments put up a sticker saying: "Cheated On VAT". Since they pleaded guilty and, thus, declared guilty, their trading licence should be suspended and, in addition, the people who so pleaded guilty should be sent to jail. That should serve for coffers of the Malta Government to fill up as people would not risk cheating on taxes!
In the same vein, I am against constant tax amnesties! They are totally unfair to those who had been paying their taxes all their lives.
I admit we are not perfect and some companies and people fall behind on paying their taxes when due and in these days of financial crises I fully supported the Minister of Finance when he declared that the government will help those people by giving them time to pay.
Well, these people did not cheat but declared the taxes due and explained that, because of cash flow pressures, are late in paying. That is not cheating! It is the cheating that I deplore and condemn!
Mr Vassallo is a former Governor of the Central Bank of Malta.