Daphne Foundation Slams Tax Settlement Law: ‘Green Light for Corruption’

Imagine this: a law that’s meant to simplify tax settlements, but instead, could be opening the door to bribery and corruption. This is the stark reality painted by the Daphne Foundation, as it raises alarm over the recently proposed Tax Settlement Law.

What’s in the Proposed Law?

The Tax Settlement Law, proposed by the Malta Financial Services Authority (MFSA), aims to streamline the process of settling tax disputes. However, the Daphne Foundation argues that the law’s provisions could have serious consequences. The law proposes to allow the MFSA to settle tax disputes without going to court, a move that the Foundation believes could lead to sweetheart deals and corruption.

At the heart of the issue is the proposed power given to the MFSA to settle disputes ‘without prejudice’. This means that any agreement reached would not be made public, raising concerns about transparency and accountability.

Local Concerns and International Context

Malta’s reputation has taken a hit in recent years due to corruption scandals, most notably the murder of journalist Daphne Caruana Galizia in 2017. The proposed law has reignited these concerns, with local NGOs and politicians expressing their worries. Opposition MP Jason Azzopardi has publicly stated that the law could lead to ‘backroom deals’ and ‘secret agreements’.

Internationally, Malta has been under scrutiny by the Council of Europe’s anti-corruption body, GRECO, for its lack of transparency in political party funding and its weak anti-corruption framework. The proposed law could further jeopardize Malta’s standing in the eyes of the international community.

What’s Next?

The Daphne Foundation is calling for the law to be amended to ensure transparency and accountability. They propose that any settlement reached should be made public, with the MFSA only able to settle disputes ‘without prejudice’ in exceptional circumstances. The law is currently under consultation, and the Foundation is urging the public to make their voices heard.

As Malta continues to grapple with its reputation, the question remains: will this law be a step forward in simplifying tax settlements, or a step back into the shadows of corruption?

You can have your say by submitting your feedback on the proposed law to the MFSA. The consultation period ends on the 31st of March, so don’t miss your chance to make your voice heard.