Issue link: https://maltatoday.uberflip.com/i/1374931
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 A fair tax system ought to en- sure that taxpayers are given the same treatment when pay- ing their dues. is is the principle that should guide policy decisions that impact how and when taxes are paid to en- sure a level playing field prevails. is is more of a necessity in the business world, where survival in a competitive environment must not come on the back of tax evasion or non-payment. It is a fact that some businesses face difficulties in meeting their tax pay- ments over the years. is can hap- pen for a myriad of reasons. Challenges can be the result of neg- ligence or worse malicious intent. But there are also genuine cases of com- panies that are struggling and require assistance. In these cases, assistance to over- come challenges must not be exclu- sive or determined on an ad hoc basis. No business should be afforded spe- cial treatment on the basis of connec- tions. Any special treatment must be grounded in policy that is accessible to all who require it. Within this context, this leader joins the Chamber of Commerce in ex- pressing concern over reports that a company's tax bill has been slashed from €40 million to €10 million fol- lowing several agreements reached with the authorities. e Finance Ministry has denied these reports. is leader has to stress the impor- tance of settlement agreements that are guided by policy. Irrespective of the case flagged in the media or its merits, the absence of policy will only create doubts and foment accusations of preferential treatment. Policy guidelines that are fair, clear and accessible to all will ensure trans- parency and fairness prevail. Offsetting any tax due against pend- ing payments owed to the company by the government could be a plau- sible solution. But this must not be an exercise in appeasement such as offsetting tax against future dues that may result from ongoing tender pro- cedures. Tax evasion is a crime and this can never be underestimated. Malta has learned the hard way that adopting a light attitude towards financial crime is conducive to corruption. While the administrative settlement of tax dues is an accepted principle in various jurisdictions of repute, this cannot be a blanket policy that over- looks serial abusers, or those whose tax evasion runs into large sums. e Chamber of Commerce is right in calling for a fully integrated IT sys- tem for public authorities that will flag any economic operators that are falling back on payments to public entities. It is unfair on law-abiding operators for abusers to be able to bid for gov- ernment contracts unless they have a repayment programme in place. is distorts the level playing field that op- erators desire and need. It is incredulous and wrong to see certain business operators that have significant tax problems and other illegalities, winning public contracts worth hundreds of thousands of eu- ros, if not millions. is is unfair and disheartening for law-abiding opera- tors. e Chamber has called for an over- haul of the public tendering system to ensure transparency, expediency and value for money, while ensuring a lev- el playing field prevails. is must be a priority, especially in light of the recent damning findings by the National Audit Office in the award of a management services con- tract at St Vincent de Paul. Don't undermine law-abiding operators 20.5.2021