At least three institutions have criticised the government for a legal notice regarding the payment of tax, all saying that what the government is doing amounts to discrimination against law-abiding people while benefiting defaulters.

The institutions – the Malta Chamber of Commerce, the Malta Institute of Accountants and the Malta Developers Association – were referring to Legal Notice 419 published on 5 November entitled “Exemption from Tax on Property Transfers (Set-Off of Tax Arrears) Rules”.

The legal notice says that anyone whose tax arrears were due by January 2021 will be allowed to pay any tax due on the transfer of property purchased before March 2021 against their arrears, meaning that they will be exempt from tax on property transfers to the extent that they are in arrears.

The scheme is intended to bring taxpayers in order but, as the institutions pointed out, it benefits only the defaulters and does not consider those whose dues are in order. This is, they say, unfair on employers and businesses that pay their taxes on time.

The legal notice, they added, leads to a discrimination against law-abiding citizens and companies and favours individuals and entities who are in default and who are in the habit of using their tax dues as their overdraft facility.

This “cavalier behaviour”, as the chamber described it, is being endorsed by the government, rather than condemned, and opens the way for more abuse.

At a time when the government is facing so many dire consequences because of the way it has tackled financial issues in the past – money laundering in particular – this legal notice goes directly against any efforts to rectify the situation. It seems that the grey-listing lesson has not been learnt.

The government is sending the message that people could ignore their financial responsibilities towards the State because, one day, an amnesty will be given. As such, people whose finances are in order are being discriminated against while the defaulters are being rewarded. It’s like telling people they can commit a crime because, in the end, there will be no punishment.

The chamber suggested that people should at least not be allowed to purchase additional property until they settle what is due.

The MDA went one step further, saying that what the government did was create unfair competition as anyone benefiting from the exercise will be in a position to offer property at a better price.

The MIA said that this is nothing less than a tax amnesty and a slap in the face to all those who operate their business in full compliance with legal and ethical considerations.

Instead of taking such stands, the government should encourage people and companies to obey the law, rather than reward those who flaunt it. There should be a level playing field for everyone, with a set of rules that everyone must follow. And, if these rules are ignored or disobeyed, the people who commit such crimes should not be rewarded for it.