4 - 10 October 2001

Budget to target self-employed

by a staff reporter

In its effort to increase revenues, the government will be targeting the self-employed in the next budget, sources have told The Malta Business Weekly.
The government will be using the recently launched benchmarking exercise to gauge earnings for the self-employed and details of its plans were presented to the constituted bodies on Tuesday during a Malta Council for Economic and Social Development meeting.
Sources told The Malta Business Weekly that the budget for 2002 will not focus on the middle class, as was the case in the last two budgets, but on the self-employed whose income, to date, has never been questioned.
This time around, government attention will focus on the self-employed persons starting from doctors, lawyers, accountants, notaries, private lesson teachers and then panel beaters, mechanics, sprayers, among others.
The government finalised the benchmarks a few weeks ago and effective action will be taken as potential tax evaders are identified.
Sources close to the MCESD told The Malta Business Weekly that Finance Minister John Dalli explained the current situation and how the government intends to continue addressing the country’s deficit and debt problems.
They added that the letter sent by the minister to MCESD chairman Prof. Edward Scicluna was not an issue during the meeting and there was hardly any discussion.
People in 24 job sectors over the next few months will find out whether their income declaration is considered just and fair by the tax authorities. Otherwise they will be liable for investigation.
The Tax Complaince Unit has created a data warehouse with on-line links to departments such as VAT, Customs, car registration, register of companies and civil registration.
Later on, further links will be added including the tax on transfers and documents, ETC register, transfers of property and lending of money, government contracts, building permits (Planning Authority) and the registry of payments (Courts).
Through this method of cross-checking, the Tax Compliance Unit will be able to analyse the information gathered over a period of years on individual taxpayers or sectors of taxpayers.