News | Sunday, 15 February 2009

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Local councils minister requests Marsaskala VAT probe results

Karl Schembri
The junior minister in charge of local councils, Chris Said, has intervened with the VAT Department to provide him with the conclusions of an inquiry into the Marsaskala council, MaltaToday has learnt.
Said requested the files after the VAT department refused to make public its conclusions or any information related to investigations into alleged undeclared income from the council’s magazine.
Last October, MaltaToday reported about the investigations into the council’s failure to declare VAT on its advertising revenues generated from its magazine, Max-Xtajta, and from another publication called Ix-Xatt.
Councillors had protested at the lack of transparency behind the publication, accusing mayor Mario Calleja of failing to produce receipts or accounts related to the magazine.
The story had prompted the director of local government to seek explanations from the council and from the VAT department.
But the VAT department has refused to divulge the results of its inquiry, or whether it was concluded.
Last week, a VAT department spokesman cited obscure legal provisions to explain the department’s secrecy about publicly-funded councils.
“Article 56 of the VAT Act provides that every person having any official duty or being employed in the administration of the VAT Act shall regard and deal with all documents and information relating to the VAT Act as secret and confidential,” he said. “The question by MaltaToday breaches the secrecy provisions of the VAT Act and therefore cannot be replied.”
Government sources said the Office of the Prime Minister, under whom Chris Said occupies his portfolio, has disagreed with the department’s secrecy. The director of local government, Natalino Attard, has since requested the inquiry conclusions but the department insisted it would only respond to a ministerial request, prompting Said to file it at the end of the week.

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