Tax Compliance

Tax Compliance

Tax enforcement is every tax authority’s greatest challenge and needs to be addressed strategically in as efficient a manner as possible, through the best possible use of available resources such as personnel and information. As it is not possible to completely eliminate tax evasion, it is of utmost importance to keep the level of evasion under control. Increases in the level of evasion can threaten the integrity of the tax system. In particular, tax evasion undermines the ability of the government to raise revenue in an equitable and efficient manner. Individuals and businesses that evade tax in effect shift their tax burden onto those taxpayers who comply with their tax obligations. This shift results in an inequitable distribution of the tax burden, and puts at a disadvantage those businesses that choose to comply with their tax obligations.

The Unit's Compliance section comprises the Tax Audits and Tax Agreements teams. These teams are responsible for actual accomplishment of enquiries / audits, as the case may be, on selected taxpayers.



Tax Audits

Tax audits of selected taxpayers are carried out on a holistic basis and include investigations for evasion and/or avoidance of VAT, Income Tax, Customs Duties, as well as Social Security abuse where applicable. Tax Audits referred to the Tax Compliance Unit generally require a high degree of expertise in auditing, accounting and the relative tax legislation, due to their more complicated nature. The results of the tax audits together with recommended assessments where applicable, are passed on to the Commissioner of VAT and the Commissioner of Inland Revenue for further action. Where applicable, findings will also be referred to the Comptroller of Customs and the Director of Social Security for further necessary action.

This Unit is made up of a number of Audit Teams each managed by a Senior Tax Auditor.

 

 CONTACT INFORMATION:
 
 Contact Name 
Tax Compliance Unit
Inland Revenue Department,
Block 4, Triq V Dimech,
Floriana FRN 0170
 
 Telephone
2296 2400
 
 Fax
2296 2462
 
 Email

Website
http://tcu.gov.mt