The Malta Institute of Accountants notes with disapproval the introduction of Legal Notice 419 of 2021, which allows taxpayers to offset tax payable on property transfers against their existing tax arrears.
This measure is tantamount to a tax amnesty and is a slap in the face to all professionals and entrepreneurs who operate their business in full compliance with legal and ethical considerations, while rewarding defaulters who abusively failed to pay their dues towards society.
Beyond ethical considerations, the MIA expresses deep concern that the enactment of the Legal Notice in question was carried out against the spirit of the collective effort of authorities, institutions, and professionals, to contribute to enhance Malta’s international reputation.
This Legal Notice risks derailing the country’s efforts on one of the most pressing issues for the country, notably its commitment, both nationally and to the international community, to fight tax crimes. By rewarding defaulters that have abusively failed to abide by legal requirements, Malta is risking undermining the progress the country is seeking to make in this regard.
The Malta Institute of Accountants has been working closely with the authorities to ensure that Malta strengthens its fight against money laundering and improve its reputation in this regard. It therefore believes no stone should be left unturned to achieve this crucial objective.In this context, the Institute appeals to Government to withdraw this legal notice.