Issue link: https://maltatoday.uberflip.com/i/437144
maltatoday, SUNDAY, 21 DECEMBER 2014 News 11 MATTHEW VELLA UNPAID taxes in Malta have climbed by 20% to €849 million in 2013, over the gross arrears of €708,638,746 reported in 2012. At least €162 million are owed from before 1998, while €415 million are owed since 1998; another €73 mil- lion were owed by employers in final settlement taxes, and €135 million in social security contributions; while the self-employed accounted for €62 million in social security contribu- tions that are still owed. The IRD has said that some €615 million are uncollectable now, main- ly relating to any balances that are older than five years. Of the €234 million that is deemed to be 'collectable', at least €50 million is owed from the years 1994-2008. Another €908 million in VAT also remains uncollected. Unpaid motor licences Transport Malta submitted a bal- ance of arrears amounting to €19.1 million in 2013, which consist of dues for motor vehicle road and driving licences. €18.7 million alone are unpaid ve- hicle licences. None of the outstanding dues were written off during 2013. A substan- tial amount, €14.8 million have been owed well before 2008 – €10 million alone relates to previous years up till 2004. Registered owners with accumu- lated unpaid licences were also given the possibility of regularising their position, benefiting from a reduction in licence and administrative fees, depending on whether the vehicle is scrapped, garaged or has its licence renewed. During 2013, a total of 24,751 No- tice Letters were sent to owners of unlicensed vehicles, of whom 1,278 (5%) regularised their position in line with the scheme. Out of the total ar- rears collected of €355,309, the sum of €322,891, consisting of licence fees (€161,232) and administrative fees (€161,659), were collected. Arrears on unemployment benefits A total of €18.6 million was also reported due by the Department of Social Protection in arrears on social benefits, a 15% increase over 2012. The amount represents various ben- efits and assistances overpaid to ben- eficiaries. Over 54% of overpayments relate to social and or unemployment as- sistances. TV licences Arrears falling under the respon- sibility of the Television Licensing Unit (TVLU) were reported at €10.4 million in 2013, mainly made up of television licences, and just €234,000 in radio communication licences. A total of €4,069,513, calculated at 40% of the gross collectable ar- rears was reported as not collectable; while €189,004, pertaining to 132 ra- dio licences, was also reported as not collectable from companies in disso- lution, lack of data and the consider- able fees involved to proceed legally. The TVLU is now in the process of sending a number of legal letters in pursuit of those debtors with the highest balances due, but a number of write-offs are also being con- sidered with respect to immaterial amounts, which have been due for a period longer than five years. mvella@mediatoday.com.mt objected to the memorandum of understanding on the ground that the granting of indefinite contracts would be used to "regularise the po- sition of persons who had been em- ployed in an irregular manner or on the basis of trust". In its report, the PSC said that "a number" of persons of trust em- ployed by the government had been granted indefinite contracts without having been referred to its commis- sioner's office. Most of these em- ployees were given the indefinite contracts in terms of a similar mem- orandum of understanding signed between the government and the UHM on 7 December, 2007. Howev- er, two of them had been granted in- definite contracts following the 2013 memorandum of understanding. "[They were granted these con- tracts] even though the Commission had directed that employees who had an objective reason in their con- tract would not be granted indefinite status without the prior approval of the PSC, following a full justification by the authority concerned," the PSC report said. "In these cases, the administration had arrogated to itself a power that belonged to an independent external authority, namely the Commission. Thus, the administration's decision to grant indefinite status had been [beyond their powers] and invalid in the first place." 732 public service disciplinary cases The Public Service Commission's report also shows that heads of gov- ernment departments treated 732 disciplinary cases in 2013, a sub- stantial increase from the 551 cases in 2012 but below the 911 cases in 2011. The penalties consisted in a written warning in 428 cases and in suspen- sion without pay in 31 cases. In 22 cases, the charged person resigned while the case was still pending. 200 cases (27%) of the total number of disciplinary cases handled by Heads of Department during 2013 were still pending by the end of the year, a significantly higher ratio than the 9% that were still pending by the end of 2012. Overpaid social benefits A drop in the ocean compared to the €1.12 billion that the government spends on social security and to run the social policy ministry Social/Unemployment assistance ................................................................€10 million Old age, carers, disability pensions ............................................................€1.6 million Milk grant, sickness, leprosy, TB assistance ................................................€937,000 Marriage grant, unemployment/maternity benefits .....................................€216,000 Six-month/Special Weekly/COLA bonuses ....................................................€132,000 Children's allowance ...................................................................................€1.57 million Supplementary allowance ...........................................................................€120,500 Pensions (various) .....................................................................................€3.8 million Energy Benefit ...........................................................................................€106,500 Senior Citizen Grant ...................................................................................€2,885 Unpaid taxes, VAT, licences and fees close to €2 billion granted without Public approval PSC describes decision as 'invalid'