Il-parker ta’ Chris Peregin

Chris Peregin illum, fit-Times, qalilna kif parker umli u bla pretenzjonijiet fetaħlu għajnejh. Marritlu r-rabja ta’ 13-il sena kontra l-PN. Tnisslitlu biża’ kbira li minħabba fiha ser jibda “jgħin” lill-Partit Nazzjonalista.

L-għajnuna mhiex b’xejn. Bi ħlas mhux żgħir li min jaf kemm iridu jinħarġu ċedoli biex jagħmlu tajjeb għalih!

F’kummenti li Chris Peregin għamel fuq il-media soċjali emfasizza fuq il-ħtieġa li l-PN jagħraf it-tajjeb ta’ ġo fih u jwarrab fil-ġemb il-bqija.

Anke il-Labour jargumenta l-istess. Smajt numru ta’ votanti Laburisti mill-iktar umli u ta’ bla pretensjonijiet, bħall-parker ta’ Peregin, ifaħħru t-tajjeb tal-Labour u jiġu jaqgħu u jqumu mill-bqija, mill-korruzzjoni u l-abbużi. Għax għal uħud sakemm “nirċievi l-pensjoni” ABŻ mill-kumplament!

X’hemm ġdid f’dan?

Tajjeb li nagħrfu l-pożittiv fil-partiti kollha, imma dan ma jfissirx li l-bqija ser jisparixxi jew jintesa.

F’Lovin Malta, Peregin waqt il-kampanja riċenti tat-tmexxija tal-PN kien jemfasizza li hu jistenna li l-PN ikollu Kap li jħallas it-taxxa (kollha) fil-ħin. Jidher li reġa’ bdielu Peregin: ser jispiċċa jgħin Kap li għamel kullma seta biex ma jħallasx taxxa.

Il-politika tinbena fuq il-kredibilità. Il-PN nieqes minnha sewwa. Peregin ma tantx jidher li ser jgħin f’dan il-qasam.

Il-parker ta’ l-inqas jidher umli u leali. Mhux merċinarju.

Chris Peregin persuna valida

L-aħbar tal-lum li Chris Peregin ser ikun qed jassisti lill-PN fil-kampanja elettorali ma tissorprendinix.

Bla dubju hu persuna valida u kapaċi.

Il-kuntrast bejn il-valuri tiegħu, kif espressi tul iż-żmien u dawk tal-PN mhux żgħir. Għad irridu naraw kif dan il-kuntrast għad jeffettwa r-relazzjoni bejn it-tmexxija tal-PN u Peregin u l-allura l-impatt fuq l-istrateġiji li ser jiżviluppaw. Mhux ser nazzarda ngħid min ser jaddatta ruħu. Imma mhux ser ikun faċli la għal Peregin u l-anqas għall-PN.

Punt interessanti li qed ikun diskuss b’ċerta intensità kemm fuq is-social media kif ukoll tal-Pietà hi l-kawża dwar il-media politiċi. Il-kawża hi f’isem Lovin’ Malta u allura tista’ tibqa’ għaddejja, għax dan ma jiddependix minn Peregin. Il-kawża hi dwar l-obbligu li kemm in-NET kif il-ONE ikunu imparzjali. Hu interessanti jekk Peregin hux ser jibqa’ jemmen fl-imparzjalità bħala valur fih innifsu u allura jekk hux ser iġorr miegħu dan il-ħsieb tal-Pietà.

Iċ-ċaqlieqa ta’ Peregin hi motivat minn ħsieb wieħed: li l-partiti politiċi l-kbar għandhom is-saħħa u li l-uniku mod kif tiġġieled il-ħmieġ hu billi taħdem magħhom. Din hi l-għażla li għamel Peregin. Għażla li tinjora l-fatt li l-PN innifsu ta’ kontribut sostanzjali biex qegħdin fejn qegħdin tant li kif stqarr Peregin innifsu, lilu imbuttawh biex għal xi żmien ivvota lil Muscat u lill-partit tiegħu.

Nifhem li min ma ra xejn ħażin li jivvota lil Joseph Muscat fl-2013 daqstant ieħor ma jsib l-ebda diffikultà li jalleja ruħu ma min evada t-taxxa. Hemm kompatibilità bejn iż-żewġ għażliet!

Peregin konvint li l-Partit Laburista fil-Gvern mhux ser jasal malajr biex joħroġ lil Malta mil-lista l-griża. Issa forsi jirrealizza ukoll li hu daqstant ieħor diffiċli biex partit immexxi minn min evada t-taxxa jindirizza din il-problema. Għax kif jista’ min hu dgħajjef fl-imġieba etika jagħti messaġġ ta’ serjeta?

Ma hemmx kredibilità.

Switch għal-lista l-griża

Għada it-Tnejn, fil-Parlament, il-Kumitat Permanenti dwar l-Standards fil-Ħajja Pubblika jibda jeżamina ir-rapport  K/032 dwar il-Membru Parlamentari Laburista Rosianne Cutajar. Ir-rapport jeżamina is-sottomissjonijiet li rċieva l-Kummissarju dwar l-Istandards fil-Ħajja Pubblika George Hyzler dwar in-nuqqas ta’ Cutajar li tiddikjara dħul tagħha hi u timla l-formola dwar id-dikjarazzjoni tal-assi meta kienet għadha Segretarju Parlamentari fil-Ministeru tal-Ġustizzja.

Ir-rapport ta’ 45 paġna tal-Kummissarju Hyzler hu akkumpanjat minn żewġ volumi addizzjonali bix-xhieda li fuqha Dr Hyzler fassal id-deliberazzjonijiet u l-konklużjonijiet tiegħu. Hemm ukoll it-tielet volum li mhux aċċessibli għal skrutinju pubbliku. Dan it-tielet volum fih statements tal-bank tal-membru parlamentari Qormija flimkien mac- chats tagħha fuq Whatsapp ma Yorgen Fenech, is-suspettat moħħ wara l-assassinju ta’ Daphne Caruana Galizia.

Il-Prim Ministru Robert Abela ħa deċiżjoni li bħala riżultat tagħha Rosianne Cutajar hi issa definittivament barra mill-Kabinet, ta’ l-inqas f’dawn l-aħħar xhur tal-leġislatura. Iżda għadha qed tinsisti li mhux ser twarrab minn membru tal-Parlament. Qalet li fi ħsiebha tibqa’, anke jekk il-Partit Laburista, s’issa, għad ma ikkonfermax jekk hux ser tkun kandidata u dan in vista tar-rapport dwar l-iStandards fil-Ħajja Pubblika taħt konsiderazzjoni.

Biex jiddefendi lil Cutajar il-Prim Ministur Abela, b’mod li jevita li jikkommetti ruħu iżżejjed, qal li kulħadd għandu jkun trattat l-istess, mingħajr deskriminazzjoni!

Bla dubju Rosianne Cutajar tħoss li ġiet ittrattata ħażin, kemm kemm mhux b’mod inġust!  Għalfejn din il-pressjoni kollha biex tisparixxi mill-ħajja pubblika meta min ammetta pubblikament li evada t-taxxa spiċċa elett Kap tal-Opposizzjoni? Il-ħajja u l-politika f’Malta xejn m’huma ġusti!   

Bernard Grech u Rosianne Cutajar qegħdin fuq l-istess livell fl-imġieba etika tagħhom, imma s’issa huma trattati b’mod differenti.  

Għalfejn, nistaqsi, l-Opposizzjoni Parlamentari ma tapplikax l-istess kriterji lit-tnejn li huma?  Meta l-Opposizzjoni tinsisti li Rosianne Cutajar għandha terfa’ r-responsabbiltà politika għal għemilha kif imfisser fir-rapport tal-Kummissarju Hyzler qed tagħmel sewwa. Għaliex mela ma tkunx konsistenti u tapplika l-istess kriterji għall-mexxej tagħha li dwaru l-investigazzjoni ilha lesta?

Bħal Rosianne Cutajar, Bernard Grech ħaqqu daqqa ta’ sieq għal barra. Dak hu t-trattament ugwali li jixraqilhom.  Il-presenza tagħhom it-tnejn fil-ħajja pubblika hi kontribut ċar għall-presenza ta’ Malta fil-lista l-griża tal- FATF!

Therese Comodini Cachia u Karol Aquilina kienu preċiżi meta emfasiżżaw li r-rapport ta’ George Hyzler jeħtieġ li jkun approvat bla dewmien jekk irridu nwasslu l-messaġġ li qed naħdmu bis-serjetà biex Malta ma tibqax fuq il-lista l-griża tal-FATF.  Nittama li xi darba jifhmu illi meta jkollok persuna li hi evasur tat-taxxa li jistenna li jkun il-Prim Ministru alternattiv fi ftit taż-żmien ieħor, dan ma tantx hu ta’ għajnuna biex nitbegħdu minn din il-lista l-griża. Għadu possibli anke issa li nkunu konsistenti jekk irridu!

Il-ħtieġa li jkollna mġieba aħjar fil-ħajja pubblika mhiex switch li tixgħelu jew titfiegħ fil-mument li nidħlu fil-ħajja pubblika. Tapplika għal kulħadd, dejjem. Mhux biss waqt li aħna attivi fil-ħajja pubblika imma saħansitra sa minn qabel ma jibda l-involviment tagħna.  

Għal din ir-raġuni ngħarblu n-nomini tal-kandidati u l-ħatra tal-uffiċjali minn qabel. Għax m’għandniex nistennew lil min kien jiġi jaqa’ u jqum dwar kif iġib ruħu qabel ma jidħol fil-politika ser jaqbleb is-switch għal imġieba aħjar, hekk kif jidħol fil-politika.

Dan il-każ għandu jservi ta’ sveljarin.

Ippubblikat fuq Illum: il-Ħadd 11 ta’ Lulju 2021

A grey-list switch

Tomorrow, Monday, the Parliamentary Standing Committee for Standards in Public Life will commence the examination of Report K/032 on Labour Party Qormi Member of Parliament Rosianne Cutajar. The report examines submissions received by the Standards Commissioner George Hyzler and points towards the failure by Cutajar to declare income which she received when drawing up her declaration of assets, a declaration which she submitted when she was still a Parliamentary Secretary in the Justice Ministry.

The 45-page report drawn up by Commissioner Hyzler is accompanied by an additional two volumes containing the supporting evidence on the basis of which Dr Hyzler based his deliberations and conclusions. A third volume of evidence has been withheld from public scrutiny. It has been stated that this third volume contains confidential bank statements of the Qormi Labour MP as well as her chats on Whatsapp with Yorgen Fenech, suspected mastermind of the Daphne Caruana Galizia assassination.

Prime Minister Robert Abela has taken a decision as a result of which Rosianne Cutajar is now definitely out of Cabinet, at least for the final months of the current legislature. However, she has stubbornly emphasised that she will not relinquish her Parliamentary seat. She says that she will be back, even though to date her political party has not yet confirmed whether she will be presented as a candidate, in view of the Standards in Public Life report under consideration.

In Cutajar’s defence Prime Minister Abela, in non-committal mode, has emphasised that she will be treated as anybody else, with no favourable treatment.

Undoubtedly Cutajar considers that she has been treated very unfairly. Why should she now be pressured to disappear from public life when a self-confessed tax evader was elected Leader of the Opposition? Life (and Maltese politics) is certainly not fair.  Bernard Grech and Rosianne Cutajar are on an ethically equivalent level yet so far, they are treated differently.  

Why is it, one might ask, that the Parliamentary Opposition adopts two weights and two measures? May I suggest that the Opposition representatives are right in insisting that Rosianne Cutajar should shoulder the political consequences of her actions as detailed in the report of Commissioner Hyzler? Why don’t they be consistent and apply the same criteria to their Leader too?

Like Rosianne Cutajar, Bernard Grech qualifies for the Order of the Boot. That is the equal treatment they should receive. The presence of both of them in local public life is a significant contributor to FATF grey-listing!

Therese Comodini Cachia and Karol Aquilina were spot on when they emphasised that the Hyzler report needs to be approved in order to send out the message that we are truly working on removing Malta from the FATF grey-list.  I hope they also agree that having a tax-evader as an alternative Prime Minister does not help in distancing this country from the FATF grey-list! 

There is still time to be consistent!

The need to upgrade ethical behaviour in public life is not a switch-on switch-off exercise depending on which political party is in government. It is applicable to all of us in politics. Not just while we are active in politics but starting from before the actual involvement itself.

This is the reason why we seek to screen potential electoral candidates and party officials before selection or election. We should not expect that those who do not behave ethically before taking up politics manage to switch to a more “acceptable” behavioural mode on entering politics.  

Let this be a wake-up call!

published in the Malta Independent on Sunday : 11 July 2021

L-għaqda nazzjonali tibda minn Portomaso

Minn dak li qed jingħad fuq website Amerikana hemm żewġ membri Parlamentari Maltin li qegħdin jipprattikaw bis-serjetà l-għaqda nazzjonali.

Hu Ministru tal-Gvern. Hi deputat tal-Opposizzjoni. Jingħad li hemm filmati tagħhom għaddejjin f’ħidmiethom f’lukanda ġo Portomaso.

Sintendi f’pajjiż żgħir ftit hawn sigrieti.

M’hemmx għalfejn tmur fuq il-qabar ta’ Kristu biex tillumina ruħek!

Sadanittant lill-pajjiż jibqgħu jwaqqgħuh għaż-żuffjett. Jidher li kulħadd jaf min huma, minbarra Robert Abela u Bernard Grech!

The PLPN stables and the MDA

The Malta Developers Association has today announced the appointment of Dr Deborah Schembri as its Director General.  She takes over from Dr Marthese Portelli who has now taken up another appointment elsewhere.

Before taking up the role of Director General of the MDA Dr Marthese Portelli was a PN Member of Parliament. She was also a member of the Planning Authority Board on behalf of the PN parliamentary group. She was also Shadow Minister for the Environment and Land Use Planning.

Dr Deborah Schembri on the other hand was Parliamentary Secretary for Land Use Planning on behalf of Labour.

With these appointments there is one thing which gets clearer by the minute. Politicians from the PLPN stables are not allergic to the MDA.

The last straw

The situation is now unbearable. The discriminatory gender mechanism introduced in the Constitution by consent of the PNPL duopoly is definitely the last straw. The PNPL duopoly have now been at it for quite some time: they are undermining our very democracy.

Some years back they introduced the proportionality adjustment mechanism in the Constitution. They fine-tuned it over the years. Yet it is only applicable when just two political parties make it to parliament. The moment that a third party makes it to parliament the Constitution ceases to guarantee proportionality except to the one party which obtains over fifty per cent of the votes in a general election. All the others are excluded from benefitting from the proportionality adjustment mechanism.

Act XXII of 2021, given the Presidential assent on the 20 April 2021, introduces another adjustment mechanism to general election results. It is a gender adjustment mechanism and is likewise applicable when candidates of two political parties make it to Parliament.

Twelve additional members of Parliament will be added from the under-represented sex. These will “be apportioned equally between the absolute majority party or the relative majority party and the minority party”. There is no provision for the applicability of the gender adjustment mechanism when parliament is made up of more than two political parties.

Way back in March 2019 government had set up a “Technical Committee for the Strengthening of Democracy” which was entrusted to draw up proposals on the need to achieve gender balance in parliament. In July of the same year, after an exercise in public consultation, this Technical Committee published its findings and final proposals.

The Technical Committee in its report acknowledges the receipt of a position paper submitted by the Maltese Green Party which emphasised the need of a “broader electoral reform” than the one under consideration. Unfortunately, the Technical Committee failed to engage and discuss the only alternative submitted to its entrenched position. An alternative which could possibly have delivered a solution without creating additional discrimination was ignored completely.

The Technical Committee’s proposal, which was eventually adopted by parliament, adds another layer of discrimination to our electoral laws. To date proportionality is only constitutionally guaranteed to political parties in a two-party parliament.  The second layer of discrimination will likewise guarantee a gender balance only when two political parties are present in parliament.

Encouraging gender balance is an important objective which I and all my colleagues share. It cannot however be the cause of creating further discrimination in our electoral legislation. This was a unique opportunity which could have been utilised by the so-called “Technical Committee for the Strengthening of Democracy” to eradicate the existent electoral discrimination rather than further strengthen it. As a result, the Technical Committee ended up strengthening the existent parliamentary duopoly.

It is unacceptable that the electoral law treats us differently from the large parties. Equality before the law is supposed to be a basic democratic principle underpinning all legislation.

The electoral system has been treating us unfairly for too long a time. Adding further to this unfairness is definitely the last straw. It is now time to address this unfairness head-on and possibly settle matters once and for all.

With this in mind we are planning to challenge constitutionally the two adjustment electoral mechanisms as both of them are designed to function as discriminatory tools.

It is however possible to have both proportionality and gender balance in our parliament without making use of discriminatory action.

Unfortunately, the PLPN duopoly have not been able to deliver fairness in our electoral system. The Courts are our only remaining hope to address and remove discrimination from electoral legislation.

published in The Malta Independent on Sunday : 25 April 2021

Carmelo Abela u s-serqa tal-HSBC

Hu diffiċli biex nemmen li Carmelo Abela kien involut jew b’xi mod assoċjat mal-attentat tas-serqa tal-HSBC Ħal-Qormi.

Il-fatt li hu avversarju politiku ma jagħmlux kriminal.

Il-fatt li ma naqblux fuq diversi aspetti tal-politika ma jiġġustifikax dak li qed jingħad dwaru.

Dan ma jnaqqas xejn mill-gravità tal-allegazzjoni ta’ Ċensu Muscat, il-Koħħu, li għandha tibqa’ tkun investigata bir-reqqa.

Jibqa’ mistoqsija waħda, għalissa. Carmelo Abela għandu jirriżenja jew le minħabba din l-allegazzjoni? Riżenja, f’dawn iċ-ċirkustanzi tfisser azzjoni biex tnaqqas il-ħsara li din l-allegazzjoni qed tagħmel lis-sistema politika. Mhux ħsara lill-Labour jew lill-PN imma lill-pajjiż kollu.

Li tirriżenja f’dawn iċ-ċirkustanzi mhux dikjarazzjoni ta’ ħtija, iżda dikjarazzjoni ta’ irġulija. Ma saritx, u probabbilment ma issirx minħabba li fil-politika Maltija ma hawnx serjetà. Kieku kella issir malajr jibda jingħad (bla ġustifikazzjoni): qed tara kif għandu x’jaqsam.

Il-klima politika f’dan il-pajjiż, sfortunatament, ma tħallix lil Carmelo Abela jaqbad it-triq tal-irġulija. Li beda l-passi legali kontra l-kummenti dijaboliċi ta’ Jason Azzopardi kien about time. Imma dak biss mhux biżżejjed.

Meta l-istat jinkoraġixxi l-evażjoni tat-taxxa

F’indirizz li għamlet nhar it-Tnejn liċ-Chicago Council on Global Affairs, Janet Yellen, Segretarju għat-Teżor tal-Istati Uniti, ippreżentat l-argument favur taxxa minima applikabbli għall-korporazzjonijiet multinazzjonali fuq livell globali, irrispettivament minn fejn huma bbażati.  Proposta ta’ din ix-xorta, kif rappurtat min-New York Times, ikollha s-saħħa li żżomm lil dawn il-kumpaniji milli jċaqilqu l-profitti tagħħom minn post għall-ieħor biex jevadu l-ħlas tat-taxxi dovuti minnhom.

Meta jitnaqqsu it-taxxi biex tinġbed l-industrija u n-negozju, emfasizzat  Ms Yellen, hemm is-sogru li mmissu l-qiegħ: fejn ser tieqaf? Ma nistgħux nibqgħu sejrin hekk. Il-kompetittività mhiex biss kif kumpanija tmur fil-konfront ta’ kumpaniji oħra.  Hi ukoll il-mod li bih nassiguraw  li l-gvernijiet ikollhom sistemi ta’ ġbir ta’ taxxa li jkunu stabbli b’mod li jistgħu jiġbru biżżejjed fondi x’jinvestu f’servizzi publiċi u jkunu f’posizzjoni li jirreaġixxu fi żmien ta’ kriżi. Hu meħtieġ li ċ-ċittadini bejniethom jerfgħu b’mod ġust il-piż tal-finanzjament tal-gvern.”

Din il-materja hi diġa fuq l-agenda tal-Unjoni Ewropeja. Hi opposta b’qawwa minn Malta, il-Lussimburgu, l-Irlanda u pajjiżi oħrajn.  L-argument dwar l-armonizzazzjoni tat-tassazzjoni hu parti integrali mill-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus.

Hu ta’ sfortuna li Malta (u pajjiżi oħrajn) repetutament abbużat mis-sovranità tagħha fuq materji ta’ taxxa. Huwa riżultat ta’ dan l-abbuż repetut li l-proposta dwar l-armonizzazzjoni tat-taxxa qabdet l-art b’mod li issa hi appoġġata ukoll mill-Istati Uniti tal-Amerka.  Malta rmiet il-vantaġġ kompetittiv tagħha billi abbużat minnu repetutament. Il-ħsara lir-reputazzjoni tal-pajjiż hi għaldaqstant awto-gol mill-kbar.

Malta ma tistax tkun kredibbli fil-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jekk ser tibqa’ tiffaċilita l-evażjoni tat-taxxa fuq skala internazzjonali.  Xi snin ilu il-Grupp tal-Ħodor fil-Parlament Ewropew kien ippubblika studju intitolat Toxic Tax deals: when BASF’s tax structure is more about style than substance. Dan ir-rapport kien svela kif tul is -snin, il-kumpanija Ġermaniża ġgant tal-kimika BASF kien irnexxielha tevita u tiffranka l-ħlas ta’ biljun euro f’taxxi fuq 4 snin billi użat lill-Malta għal dan l-iskop. Dan sar billi kumpanija sussidjarja ġiet reġistrata f’Malta u t-taxxi dovuti, għax l-azzjonisti mhux residenti f’Malta, ħadu lura 6 euros minn kull 7 li kellhom iħallsu f’taxxa!

Il-każ tal-Korporazzjoni Amerikana Apple fl-Irlanda, kif nafu, wassal għall-evażjoni ta’ 13-il biljun euro f’taxxi. L-iskandlu Luxleaks fil-Lussimburgu ukoll wera kif dan il-pajjiż żgħir fost il-fundaturi tal-Unjoni Ewropeja ukoll kien qed jinkoraġixxi l-evażjoni tat-taxxa.

Dawn huma ftit mill-eżempji. Bla dubju hemm bosta oħra li s’issa huma moħbija mill-iskrutinju pubbliku. Bħala riżultat ta’ dan kollu madwarna għaddejja evażjoni ta’ biljuni ta’ euro ta’ taxxi, kontinwament. Malta, l-Irlanda, il-Lussimburgu u xi pajjiżi oħra jiġbru parti żgħira mit-taxxi dovuti bħala ħlas talli jippermettu din l-evażjoni ta’ taxxa fuq skala pjuttost kbira.

F’Malta dan kollu kien possibli bħala riżultant tal-hekk imsejjaħ “kunsens nazzjonali” bejn il-PLPN dwar il-qasam finanzjarju. “Kunsens” li ilu fis-seħħ numru ta’ snin. Il-ħsara lir-reputazzjoni ta’ Malta li seħħet u għad qed isseħħ bħala riżultat ta’ dan kollu, għaldaqstant, ma jġorriex il-Partit Laburista waħdu. Il-Partit Nazzjonalista ukoll għandu resposabbiltà xi jġorr. Għalhekk fuq dawn il-materji in-Nazzjonalisti u l-Labour dejjem iħokku dahar xulxin.  

Sfortunatament l-evażjoni tat-taxxa u l-ħasil tal-flus huma ħafna drabi konnessi. Bosta drabi fejn issib waħda issib l-oħra ukoll.

It-triq il-quddiem m’għandiex ikollha impatt fuq is-sovranità fil-qasam tat-tassazzjoni kif determinat mit-trattati Ewropej permezz tal-ħtieġa tal-unanimità f’materji konnessi mat-taxxa. Imma hemm bżonn urġenti li l-qasam tal-politika fiskali ukoll jinbena fuq prinċipji etiċi b’saħħithom. U mhux dan biss. Għandu jkun assigurat darba għal dejjem li Malta ma tibqax tiddependi minn dħul ġej mill-evażjoni tat-taxxa.

Għax id-dipendenza tal-ekonomija Maltija fuq l-evażjoni tat-taxxa (u l-bejgħ tal-passaporti) hi ta’ inkwiet kbir għall-pajjiż. L-industrija tal-evażjoni tat-taxxa hi sors ta’ dħul kif ukoll ta’ impiegi li it-tnejn li huma inevitabilment jintilfu fi żmien qasir. Wasal iż-żmien li nippjanaw għal futur nadif, futur li mhux iktar dipendenti fuq l-evażjoni tat-taxxa.

Ippubblikat fuq Illum: il-Ħadd 11 t’April 2021

When the state encourages tax evasion

In a speech delivered on Monday to the Chicago Council on Global Affairs, Janet Yellen, US Treasury Secretary, made the case for a global minimum tax applicable to multinational corporations irrespective of where they locate their headquarters. Such a proposal, reported the New York Times, would prevent companies from shifting profits to evade taxes.

Lowering tax rates to attract business, emphasised Ms Yellen, is a race to the bottom which has to be addressed. Competitiveness is not just how companies fare against other companies. It is also about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crisis, and that all citizens fairly share the burden of financing government.

This issue is already on the agenda of the EU facing fierce opposition from Malta, Luxembourg, Ireland as well as others. The issue of tax harmonisation is an integral part of the fight against tax evasion and money laundering.

It is unfortunate that Malta (and others) have been repeatedly abusing its tax sovereignty. It is as a result of such repeated abuse that the proposal for tax harmonisation is gaining ground such that it now has the support of the United States of America too. As a result of greed Malta has squandered a competitive advantage by abusing it repeatedly and continuously. The resulting reputational damage is hence an own goal.

Malta (and the other countries) cannot be credible in the declared fight against tax evasion and money laundering if it keeps facilitating tax avoidance on an international scale. Some years back the Green Group in the European Parliament had published a study entitled Toxic Tax deals: when BASF’s tax structure is more about style than substance. This report reveals that over the years, the German chemical giant BASF used Malta to avoid the payment of one billion euros in taxes. This was done using the “legal” possibility to have tax refunds of up to six sevenths of the tax due in such cases where shareholders are not resident in the Maltese islands. Tax avoidance is tax evasion sanctioned by the state.

The Apple Corporation case in Ireland as a result of which another €13 billion in taxes were avoided is another example of tax evasion sanctioned by the state of Ireland. Luxleaks had also revealed countless of other examples as a result of which Luxembourg too embarked on state encouraged tax-evasion.

These are just some examples of many: the proverbial tip of the iceberg. There are undoubtedly countless of others, currently below the radar of public scrutiny, as a result of which the payment of billions of euros in taxes are being continuously avoided. Malta, Ireland, Luxembourg and other countries receive a small part of the actual tax due as a result of facilitating this state encouraged tax evasion.

Locally this scam is the result of the PNPL “national consensus” on financial institutions and fiscal policy in force for a number of years in Malta. The responsibility for the resulting reputational damage is thus not one to be shouldered by the Labour Party on its own, it has help from the PN which has continuously buttressed this abusive behaviour.

Unfortunately, tax evasion and money-laundering are inseparable twins!

The way forward need not impact the tax sovereignty afforded by the EU treaties through the unanimity rule on taxation issues. However, it necessitates ensuring that policy on all fiscal issues is also founded on sound ethical principles.

In addition to ensuring that fiscal policy is not in any way unethical it is about time that Malta does not any more, in any way, depend on tax avoidance.

The dependence of Malta’s economy on tax avoidance (and the sale of citizenship) is very worrying. The tax avoidance industry is a source of both revenue to the state and employment opportunities, both of which will be lost in the not-so-distant future. It is about time that we start planning for a cleaner future, a future that is, which is not dependent on the tax avoidance industry!

Published in the Malta Independent on Sunday : 11 April 2021