Malta's Tax Compliance Unit Pledges Increase In Revenue By Lm40 Million

by Lorys Charalambous, Tax-News.com, Cyprus

22 November 2001

Speaking at a press conference earlier this week, chief executive of the Tax Compliance Unit (TCU), Mr Paul Barbara claimed that in the majority of the tax returns an under-declaration was discovered, some of which amounted to substantial figures. This has led the TCU to announce a pledge to increase tax revenue by Lm40 million (£61 million) over the next five years.

Mr Barbara confirmed that most of the Unit's work is aimed more towards the business sector rather than the individual taxpayer and he said that since August this year the TCU had embarked on 36 investigation, 10 of which have been brought to fruition and the remainder are ongoing.

Finance Minister John Dalli was also present at the press conference. He said that it was vital for the financial burden of Malta's economy be shared and supported by everyone. 'The exercise undertaken by TCU should help bring about the culture that all citizens conform to pay their taxes,' the minister said.

To enable the TCU to meet its aim, Mr Dalli said the Unit will operate a new IT system entitled Data Warehousing which will be the first of its kind on the Island. Systems manager Tony Sultana explained that before the year-end, the TCU will be able to access data on all taxpayers in Malta such as information regarding their vehicles, companies they are involved with, VAT details and any import/export details.

The service will expand next year to include access to data on trading licences, Maritime Authority information, capital transfer duty and interest earned from foreign accounts.

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