Issue link: https://maltatoday.uberflip.com/i/1233417
09.04.2020 5 NEWS MASSIMO COSTA A number of professional bod- ies have called for the govern- ment to assist them consider- ing the financial burden their clients are suffering which are preventing them from paying their fees for services given. e bodies, which represent Malta's lawyers, dentists, archi- tects, accountants and notaries are asking the government for a deferral of income tax, VAT and social security contributions, amongst other measures. e proposed measures were put forward in a National Strat- egy Document presented to the government by the Chamber of Advocates, Dental Association of Malta, Kamra tal-Periti, Mal- ta Institute of Accountants and Kunsill Notarili ta' Malta, which together represent around 10,000 professionals and sup- port staff. "Our practices are pretty much at a standstill. Our clients have been hit hard and the outlook for recovery of their business is bleak. We depend on our clients generating work and paying our fees – we understand that this is a critical time when our clients will require our assistance, and as professionals we will provide it – but they will have difficulty paying for our fees, and we need to be able to support them even in this respect," the bodies said during a meeting with Economy Minister Silvio Schembri. e bodies carried out a sur- vey amongst their members asking them about the impact of COVID-19 on their business, loss of revenue and depressed cash collection emerging as prime concerns. "e results of the surveys showed that there is serious concern amongst professionals centring principally around the uncertainties of the duration of the situation and whether there will be state assistance, which in turn places everyone in a situ- ation where it is impossible to plan." "e anticipated impact on cash flows and future revenues are severe and few will be able to weather the storm unscathed." e bodies warned that this could leave to recruitment stop- ping and employees on pro- bation being release across all sectors. In the case of architects, it is anticipated that in April, 15% of the workforce will be made re- dundant, the survey indicated. For lawyers, serious consider- ation is being given to reduce headcount by around 15% (50% - by one day or less a week); to move to a three- or four-day week (54%); and 63% anticipate that they will revise remuner- ation packages downward, it showed. When it comes to account- ants, approximately 60% are shifting to a three- or four-day week, or otherwise reducing headcount; 37% are reviewing salary arrangements in a sig- nificant manner; and 32% have stopped recruitment. In terms of loss of revenue, 50% of architects and civil en- gineers think their revenue will reduce by 30% or more. Around 52% of accountants are experiencing a critical/very high impact on revenue, while for over 20% of lawyers their loss of revenue has been greater than 80%. In the case of dentists, while cash collection is not an issue since most of their revenue is collected upon delivery of their services, 85% are forecasting that their revenues will be re- duced by more 80% In light of this, the profession- al bodies have proposed six im- mediate measures to help them survive the next three months: • Deferral of payments of pro- visional and settlement in- come taxes due to 31 Decem- ber 2020, with provisional tax based on 2020 estimates effected only in December • Deferral of VAT payments due to 31 December 2020, and facilitation of conversion to a cash-based VAT system for professionals • Deferral of the payment of social security contributions (of self-employed and those attributable to their employ- ees), FSS and MLF to 31 De- cember 2020 • Eligibility of self-employed professionals and employees in the sector for (a) morato- ria on personal, residential and business loans and cred- it facilities and (b) access to new credit facilities on "soft" terms to enable professionals bridge the period of crisis • Flexibility to professionals of coming to different arrange- ments and terms of employ- ment with their employees • Self-employed practitioners and their employees should be eligible for minimum state assistance in terms of their income/salaries. e bod- ies do not seek to have this measure implemented ret- roactively, but as of 1 April 2020. is measure would be subject to claw-back provi- sions, so that if a professional practice still makes a profit at the year-end – then it would have to refund any payments received from government to subsidise salaries and income of self-employed. Coronavirus Professionals lament lack of government aid, warn of redundancies MELITA Limited is taking a series of ac- tions to support key workers and vulner- able families affected by the Covid-19 outbreak. Key workers, including nurses, doctors, police and members of the armed forc- es, as well as all other staff at Mater Dei, together with employees at homes for the elderly who are having to spend ex- tended periods of time away from home, living with those they care for, are being given 5 GB of mobile data per week, for free. For those key workers who are hav- ing to leave home and move into new ac- commodation in order to minimise the risk of spreading the coronavirus, Melita will provide endless data plans. Additionally, Melita is also supporting the wider community, particularly the growing number of vulnerable families who have been most negatively affected by the economic impact of the outbreak. In recent weeks, the Foodbank Life- line Foundation has seen demand for support increase significantly with the provision of fresh fruit and vegetables to these families becoming a particular challenge. For this reason, the company will provide €10,000 to be used to pur- chase of much needed products. Harald Roesch, Chief Executive Of- ficer at Melita Limited, said, "Since the onset of the Covid-19 outbreak, Melita has been working hard to ensure that we support all our staff and customers in the best way we can. It's only right, however, that we put in that extra effort to support key workers who are on the frontline in fighting this virus while also having to spend extended periods of time away from their loved ones. Simi- larly, we cannot forget the growing num- ber of vulnerable families who have been most negatively affected by the econom- ic impact of the current crisis. As this situation develops, Melita will continue to fully support the community and to keep the country connected." Melita increases support for key workers and vulnerable families All staff at Mater Dei who are Melita customers are being given 5GB of mobile data per week