Issue link: https://maltatoday.uberflip.com/i/1534095
6 OPINION LAW 9 maltatoday | SUNDAY • 6 APRIL 2025 Julia Farrugia is minister for inclusion and the voluntary sector Law Report A tax estimate was declared null and void because the Tax Commissioner failed to notify the company as prescribed by law. This was held in a judgment delivered by Mr Justice Francesco Depasquale on 1 April 2025 in Sullsport Ltd vs Tax Com- missioner. In the sworn application, the Plaintiff Company explained that it received a no- tice from the Commissioner of Taxes to pay over €66,000. The letter was dated 28 November 2018, but received on 10 De- cember 2018. According to the Income Tax Management Act, the letter has the effect of an executive title after the Com- missioner files a judicial letter. However, in this case the official letter was not is- sued. The Plaintiff Company held that the notice was null because the Commissioner failed to follow the procedure. The notice was referring to the Year of Assessment 2002 when the company did not send a return for that year. In these circumstanc- es, the law states the Commissioner may establish the amount due in tax and does not need to inform the taxpayer that an estimate is being calculated. However, in this case the Plaintiff Company was nev- er informed of the estimate and the first time the Plaintiff Company became aware of it was when the notice to pay was sent. Because of this lack of information, the Plaintiff Company argued that the notice to pay was null and void. The Tax Commissioner filed a statement of defence arguing that the Court did not have jurisdiction to sanction the notice to pay. Furthermore, it was argued that the estimate tax for 2002 was issued in 2010 and no objection was filed on the estimate. Furthermore, the notice to pay in 2018 was duly notified to the Plaintiff Compa- ny and therefore, the company owed over €66,000 in taxes. Mr Justice Depasquale examined the ev- idence produced. In May 2019 following the letter of December 2018, the Plain- tiff Company filed an objection but the Commissioner replied by rejecting the objection since it was filed late in terms of Article 33(2) of the Income Tax Manage- ment Act. An official of the Income Tax Department presented a letter dated 31 December 2010 with an estimate of tax for the year 2002. Another official could not confirm that the estimate was in fact issued. The Court pointed out that the Income Tax Department official had presented a notice to the Plaintiff Company with a dif- ferent date, that of 25 October 2018 and not 28 November 2018. It was also argued that the notice to pay became an executive title 30 days after notification. However, the notice mentions a different period. It stated that the taxpayer had 15 days to pay. The law also states that a notice to pay may proceed against any official of the company without any further notices. The Court also commented that the Plaintiff Company did not present any evidence on the difficulties faced. There- fore, the tax estimate had to be issued after the company failed to file its returns. The Court quoted Article 33 of the Income Tax Management Act which states that the estimates should be notified by regis- tered post. The estimate may be contested in writing asking the Commissioner to re- consider its decision. There is no evidence that the estimate for 2002 was notified by registered post. If registered post was used, then it would be easy to prove that the estimate was sent. The company rep- resentatives testified that the document was never received and thus they lost the opportunity to appeal the estimate. The Court declared the estimate cannot be considered as an executive title. The Court then moved to uphold the Plaintiff Company's claims. Tax Commissioner is to follow the procedure in full LAW REPORT MALCOLM MIFSUD Mifsud & Mifsud Advocates MALCOLM MIFSUD Mifsud & Mifsud Advocates Julia Farrugia Turning words into more deeds THE simplest thing for a government and any organisation or business is to publish a strategy. A nicely-worded doc- ument with colourful pictures; the in- evitable leading messages, targets and statistics aimed at convincing the reader how serious the organisation is in mak- ing it happen. It could, in itself, be self-entrapment unless such strategies are, after a broad public consultation, quickly followed up by action and results. It would be mean- ingless unless words are turned into deeds. I am proud to say that where strategies are concerned, this government's record has been a hugely fruitful one, with all of them paving the way for better futures and greater ambitions. The recently pub- lished National Volunteering Strategy 2025-2030 for public consultation by the Malta Council for the Voluntary Sector and supported by my ministry, is, the im- mediate inheritor of the rich legacy left by the 2019–2024 strategy. It is a natural follow-up required to meet the on-going challenges of a fast-evolving society. Given society's changing trends and situations, the voluntary sector is high- ly susceptible to social evolution. New pressures, tight personal timetables, and ever-changing agendas often catch vol- unteers unaware, a reality we know they successfully fight on a daily basis and, of- ten, at much personal sacrifice. This makes it even more imperative for us in the administration of the country to show the way, to offer support, and to financially sustain those many volunteer organisations and volunteers that Malta and Gozo are lucky to have. The thousands of volunteers working at locality and national levels, sometimes even from single-individual initiatives, are a blessed testimony to the Maltese people's commitment to different vital social spheres – from the disability sector to first aid; safety and security to sport; culture and traditions of all sorts. Having a big heart is tremendously im- portant, but so is the provision of a strat- egy based on public consultation and containing new avenues to be traversed and opportunities to be attained. The Maltese volunteering sector offers a pos- itive, natural and spirited way to realise meaningful human interaction, collab- oration, and purposeful contribution to a Maltese society bent on achieving the benefits of active citizenship, social in- clusion and solidarity. Volunteering is an easily accessible, meaningful and enjoyable human experi- ence which this strategy seeks to encour- age and support while giving importance to ethics and quality within the existing legislative framework. Working closely with stakeholders in the sector is critical. In the process of enhancing the value of volunteering and encouraging engagement, cohesion and social inclusion, government and MCVS recognise the need to continue develop- ing close collaboration within the sector by forging a partnership with voluntary, not-for-profit and commercial organi- sations, and individuals within our com- munities. It opens the way to addressing the environmental, social and govern- ance objectives and other significant tar- gets. We seek to further encourage good practice and better cooperative methods of decision making, as well as encourag- ing the adoption of procedures for per- formance revision, particularly in the case of registered organisations receiving government funds as service providers. Based on four main pillars – capacity building, collaboration with stakehold- ers, civic participation, and voice and visibility of the sector – this strategic plan sets priorities, focuses energy and resources, and strengthens operations, in the search of common goals and instill- ing a sense of harmony for the benefit of society at large. The contribution of different age groups to drawing new people to volunteering cannot be emphasised enough. Active citizenship for all, including the precious contribution of older people with their lifetime's experience, is a rallying call which the proposed volunteering strate- gy is making towards realising to the full at either end of the age range. This would ultimately lead to the development of a dynamic volunteering culture and struc- tures that facilitate the highest standards of voluntary services. We are submitting a strategy that aims to empower and sustain volunteering through a collective commitment to building a more resilient, equitable and compassionate society. Help us embel- lish it with your views and advice.