VAT court cases in Malta top 15,000
Monday November 16, 2009
More than 15,000 VAT-related cases have been heard in Malta courts within the last three years, official figures show.
Data tabled in Malta’s parliament reveal that between 2007 and 2009, over 9,700 notices were issued for late payments, while in the first nine months of this year, 4,420 cases have been heard in connection with VAT breaches.
From the beginning of this year, the 1,196 people who owe the VAT department more than 50 euros have accumulated a collective bill of more than 11 million euros.
Furthermore, a record 6,500 cases were prosecuted under the VAT Act last year, compared with 4,336 in 2007.
Malta’s VAT department resorts to court action if individuals repeatedly ignore reminders. Civil action may also be pursued by the department through judicial letters, warrant of seizures and garnishee orders.
A recent study by the European Commission found that Malta has lost a potential 305 million euros in VAT proceeds between 2000 and 2006.