News | Sunday, 03 May 2009

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Dead end for Marsaskala VAT probe

James Debono
Marsaskala residents could end up voting in next June’s election without knowing the results of an investigation into the council’s failure to issue VAT receipts for adverts in its magazine, because both the VAT department and the Local Councils Department are refusing to divulge any information on this case.
MaltaToday is informed that while a number of invoices were not issued at all for adverts in its magazine, others were issued by the Marsaskala Bocci Club instead of the council.
Mayor Mario Calleja claims he had nothing to do with adverts published in the council magazine, because the printing and publishing of the magazine was carried out by contract with a third party.
Last October, MaltaToday reported on the investigations into the council’s failure to declare VAT on its advertising revenues generated from its magazine ‘Max-Xtajta’, and from another similar publication called ‘Ix-Xatt’.
The latter publication, bearing a logo similar to the locality’s coat of arms, was issued by a phantom organisation called A.R.M.A., and included adverts by various government entities such as Wasteserv and the Ministry for Rural Affairs.
Councillors had protested at the lack of transparency behind the publication, accusing mayor Calleja of failing to produce receipts or accounts related to the magazine.
Confirming that the department of local government had referred the matter to the Commissioner of VAT to investigate allegations of a breach of the VAT law, a spokesperson for junior minister Chris Said insists the investigation is still ongoing: “If it is found that there was a violation of the law, the matter will be taken to the competent authority.”
But the finance ministry is still insisting that the VAT Act precludes it from publishing the results of its investigations. “The department is legally not in a position to publish the results of investigations that it conducts on persons required to register for VAT, or to give information to the press regarding such investigations,” an official said.

jdebono@mediatoday.com.mt

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