The VAT Department has denied a Labour Party claim that it failed to mail tax return forms to 4,000 taxpayers who were due to submit their returns by May 15.
The Department said it had evidence that all forms were printed and mailed.
The department said that as of this year it not only mailed out the forms, but the forms now included a detailed account informing the taxpayer of his/her position.
In the morning, PL finance spokesman Karmenu Vella in a statement said that VAT tax return forms for 4,000 persons which were supposed to be returned to the VAT Department by May 15 were not even issued by the Department.
The forms cover the statement of earnings for the first quarter.
He said this this was another example of government inefficiency, more so as such forms were normally issued in a computerised process.
To make matters worse, the VAT Department issued tax assessments to these taxpayers and warned them that they were liable for penalties for not filing their returns on time.
Those who protested to the department faced arrogance by officials who said that it was the businesses' responsibilities to ensure that returns were filed on time, and not the government's.
Mr Vella said these taxpayers were not to blame and were being put under undue pressure.
He said that a substantial number of applications for VAT refunds were currently pending before the department, but refunds were not being issued promptly because of a lack of funds. As a result, the government was incurring interest of 9%.
Mr Vella said these shortcomings were persisting despite the Auditor General's report which had highlighted the department's failings . This also followed the corruption cases at the department.
As a result, Mr Vella said, the people had no confidence in the government and its financial systems.
With regard to the refunds, the department said refunds were being audited, a process which took some time. It was however, shameful, it said, that the department was now being criticised for carrying out the required checks before issuing payments.
'DISHONEST' REPLY
Mr Vella in a reaction described the VAT Department's reply as 'dishonest' and published a tax assessment sent to one of the taxpayers.
He said that thousands of people last week 'invaded' the VAT Department to object over the unfair way they were being treated. Many of them were asked to pick up the missing form themselves.