How tax administration in Malta will change

Malta has reformed the structure of its tax administration to bring four organisations together under a new chief, who will be known as the commissioner for revenue.

The measure means that the Inland Revenue, the VAT and customs departments, and the tax compliance unit will become part of the same structure.

Tonio Fenech, the Minister of Finance, the Economy and Investment, said, in a speech introducing the Commissioner for Revenue Bill in Parliament on October 31, the move would improve tax administration and curb abuse.

The minister explained that each body would still be responsible for their own area but that the commissioner would be in charge of the whole structure.

The uniformity and cohesion brought about by the amalgamation, Fenech said, would mean, for example, that one part could check whether a taxpayer had any outstanding payments before issuing a refund.

The legislation, which was passed unanimously, will take two to three years to implement.

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