Copyright timesofmalta
The Malta Chamber has slammed “damaging” and “unfair” statements about tax dodging companies saying not all businesses that fail to declare profits are evading tax. Responding to Finance Minister Clyde Caruana’s claim that 70% of companies do not declare profits and pay no income tax, the Chamber said this was not totally correct and cast law-abiding companies in a bad light. “It would be wrong to think that all those failing to declare profits are evading tax,” the Chamber said in a statement on Thursday. It insisted that “those who are compliant” should not be “unfairly tarnished or overshadowed by those who evade their obligations”. They pointed out the reality in which local businesses operate, full of “uncertainty on multiple fronts”, rising costs, excessive bureaucracy, increased competition and oversaturated markets “all of which tighten margins”. The Chamber expressed its “strong” support for any efforts to address gaps in addressing instances of tax evasion but criticised “generic pronouncements that tend to put all businesses in a bad light”. “Such statements are especially damaging and unfair on ethical and law-abiding businesses.” In its Pre-budget documents, The Malta Chamber had repeatedly called for smarter, incentive-based approaches to tax collection. It has also insisted on a Public Procurement Reform including the introduction of “effective and proper” white listing and black listing. “It is unjust to have taxes collected from law-abiding businesses and citizens to fund procurement which is awarded to those who evade their fair share,” the Chamber said. It also suggested a move towards a cashless economy would help curb tax evasion saying it would prioritise digital transactions over physical currency, increasing efficiency and record-keeping. “Malta’s continued prosperity depends on a transparent, just, and competitive business environment – on everyone, without exception, paying their fair share.”
