Seller to be hit hard by Gaffarena deal taxes
Advert

Seller to be hit hard by Gaffarena deal taxes

The family who sold Mark Gaffarena part-ownership of a Valletta property at the centre of a controversial expropriation may be faced with a hefty tax bill amounting to more than the sale price.

The total bill, including tax and duty, could amount to €122,000 plus penalties and interest, a government spokesman confirmed. But according to a tax expert who spoke to Times of Malta, this is a conservative estimate and the bill could rise to €180,000. As buyer, Mr Gaffarena would also be exposed to an additional payment of €50,523.

The Commissioner for Inland Revenue has already appointed an architect to inspect the property, because there was a marked difference in the sale price and the value calculated when Mr Gaffarena's ownership was expropriated.

The government paid Mr Gaffarena €822,500 within weeks of the family selling their part of their property for €139,762.  If it is confirmed that the amount the government paid was the real market value of the property, both the buyer and the seller will be asked to pay addition tax.

The alternative would mean the government had overpaid for the property.

Tonio Mercieca, a member of the family that sold the property to Mr Gaffarena, told this newspaper last Sunday that his family sold it at a cheap price because it had been rented out to the government since 1902 and they could not make use of the property. The tenant has a right to occupy the property until 2028. 

More in Times of Malta and the e-paper on timesofmalta.com Premium.

Comments not loading? We recommend using Google Chrome or Mozilla Firefox with javascript turned on.
Comments powered by Disqus  
Advert
Advert