The government is passing a bill to strengthen tax collection, which is currently at its second reading in Parliament. The bill is part of the efforts by the Minister for Finances to strengthen tax collection but was presented by the Minister for Justice Jonathan Attard. You can download the bill here. You can listen to the Parliamentary session here.
The bill reinforces the powers of the Commissioner for Tax and Customs to recover outstanding tax, social security, and VAT dues more efficiently including by issuing confiscation orders. It closes a VAT loophole wherein different partners fail to pay VAT due to a disagreement: the tax commissioner will now be able to enforce the payment on any or all partners. Debt collection as ordered by the Courts will also be more efficient with the expanded powers of the Commissioner. There will also be no need for a Court order to recover outstanding tax debt.
The bill also highlights the digitisation of tax collection and makes notices sent via email legally binding.
The new bill includes new penalties from €10,000 to €1 million to those who violate agreements with the tax collector and fall back on their payments.
Anti-money laundering clauses have also been strengthened with the Tax Commissioner now having extensive powers to collaborate with both local and international entities on investigations and to acquire information on tax collection.
The bill greatly contrasts with the previous anti-money laundering bill which minimised prosecutorial powers to confiscate and seize assets. Justice Minister Jonathan Attard said that the bill strengthens Malta’s financial jurisprudence which is important for democracy.
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