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local
news
Euphoria
and anger greets revelation
There
were mixed, spontaneous reactions to an analysis published in MaltaToday's
sister paper, The Business Times, depicting estimated income brackets
for six different professions.
The analysis uncovers the extent to which, in some cases, tax evasion
is rampant, widespread and shockingly exaggerated.
But it does not take into consideration those in their novice years
who are still establishing themselves and on lower incomes than
the experienced, successful professionals.
The news that the tax burden would be shifted from the long-suffering
middle classes was welcomed by various readers who reacted to The
Business Times investigations with the phrase: "At long last."
But the professional classes, in contrast, were in reactionary mode,
with chants that any tax compliance for the professionals would
lose the Nationalist party the next election.
But senior Nationalist party officials told MaltaToday: "We
have to be credible, we cannot take measures on one side and discriminate
in favour of another. Everyone has a part to play."
At courts and in hospitals, a small, but vocal group said these
benchmarks were unacceptable.
But in school staffrooms, government departments and banks throughout
the island, the news that the implementation of benchmarking was
near was welcomed with open arms.
"The figures presented in your analysis are moderate in some
cases, but others indicate that some professions earn up to Lm60,000
annually," one reader pointed out.
In fact, to the vast majority of salaried middle class workers who
have fixed wages, the inclusion of self-employed professionals into
the equation of tax compliance is being supported to the full.
The ramifications from The Business Times story were amplified after
The Malta Independent chose to focus on the issue by quoting Network
Publications and presenting the report as if they were officially
distributed figures.
The media, as a whole, have been calling on the government to focus
on the real tax evaders. Now that the issue has surfaced it is unclear
as to how everyone will react.
But government sources have said they want to establish clear guidelines
about the concept underlining benchmarks.
The first aspect is that benchmarks for the professions would be
discussed with the constituted bodies and they would serve as a
standard for seeking clarifications over revenue declarations.
There was also much emphasis on the fact that these would not be
a throwback to Dom Mintoff's ex-officios.
The second point was that the benchmarks would create a cultural
change in the chemistry of under-declaring income and would hopefully
avoid further focus on particular tax avoidance.
The third point was that no sector was above the law, and what applied
to one sector applied to all.
And finally, the exercise in extending standards in benchmarking
in the public sector with reference to efficiency and service would
also be undertaken.
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