Issue link: https://maltatoday.uberflip.com/i/470920
maltatoday, SUNDAY, 1 MARCH 2015 6 News A garnishee order of €45,115 has been issued on the bank accounts held by the Malta Independent col- umnist and blogger Daphne Caruana Galizia by the Inland Revenue de- partment. Caruana Galizia is currently in court to contest a tax assessment of €101,194 in outstanding VAT ar- rears. The garnishee order was issued on 3 February 2015 by the com- missioner of tax. The tax department is claiming that the blogger did not submit a tax return for years. Malta Inde- pendent col- umnist Daphne Caruana Galizia has been called on by the VAT department to pay €101,194 in outstanding Value Added Tax, after a tax audit on her earnings from 2004 to 2012 produced an estimate of €562,191 in undeclared sales from the produc- tion of magazines for Standard Publications, among other sources of revenue. The columnist is facing tax assess- ments on both income and VAT declarations. A bank deposits test exhibited in court by the VAT department had registered a total of €1,013,883 in deposits into Caruana Galizia's bank accounts over the past decade, of which €320,000 was drawn up as an estimate by the tax audits section for the years 2004-2007. The VAT department estimated that the excess deposits excluding VAT, amount to €562,191 and is calling on the columnist to pay 18% on the sum. According to the court documents, the director of VAT said that between 1999 and 2013, Caruana Galizia sub- mitted 13 tax declarations that had missing earnings. In 2007, the department twice in- formed Caruana Galizia to file cor- rect returns and even threatened her with criminal action, although it is not clear what action the depart- ment took. In 2012, the department again wrote to Caruana Galizia demand- ing a €20,762 payment and also instructed the Tax Compliance Unit to draw an assessment. On 14 March, 2014, the TCU informed her of the estimate for her unpaid VAT and a review was then carried out in April. The TCU's tax audits section drew up a schedule of revenues from what it said was "undeclared employment income" between 2003 and 2004, Taste Cooking School, and bank de- posits between 2008-2013. Under her contract with Standard Publications, Caruana Galizia – who has traded as Proximus Publishing – paid the publishers of the Malta In- dependent half the net proceeds of advertising revenue for Taste&Flair Magazine, less printing costs. Caruana Galizia is contesting the esti- mates, saying they were not drawn up "properly, reasonably or fairly" and that they are based on "an incorrect apprecia- tion of the facts". She claimed that not all deposits con- stitute income, they include also money from her husband to pay household bills; transfers from overseas organisers; libel damages; sale of unwanted fur- niture; gifts; and also return of monies owed to her by family members. She told the Tribunal of Admin- istrative Review that the VAT De- partment has treated all deposits made into her sole bank account as taxable supplies. Caruana Galizia has argued that she has one current account that she uses for both personal and work-related transactions – includ- ing revenue for the production of Taste&Flair magazine for the Malta Independent, as well as payment for her newspaper columns; and for costs incurred in the production of the magazine. €45,000 garnishee order on Caruana Galizia The garnishee order was issued on 3 February 2015 by the com- Malta Inde- pendent col- umnist Daphne Caruana Galizia has been called on by the VAT department to pay €101,194 in outstanding Value Added Tax, after a tax audit on her earnings from 2004 to 2012 produced an estimate of €562,191 in undeclared sales from the produc- tion of magazines for rect returns and even threatened Taste&Flair Magazine, less printing costs. Caruana Galizia is contesting the esti- mates, saying they were not drawn up "properly, reasonably or fairly" and that they are based on "an incorrect apprecia- tion of the facts". She claimed that not all deposits con- stitute income, they include also money from her husband to pay household bills; transfers from overseas organisers; libel also return of monies owed to her by family members. She told the Tribunal of Admin- JAMES DEBONO DESPITE a reduction in height from four to three floors, the herit- age authorities are still objecting to the development of a hotel near the Labour Party club in Senglea. The new hotel would impinge on views taking the centre stage from the nearby 16th century church of St Julian's. The plans presented by the devel- oper, Saviour Pace, originally en- visaged a receded third and fourth storey. The application now proposes the restoration of the existing façade and the construction of a full second floor and a receded third floor. In a letter sent to MEPA last week the Superintendence for Cultural Heritage noted that the construction of a third floor level would negatively impact existing views from across the harbour. "Such a third floor level will cre- ate a high blank wall to the east of the property which will encourage further vertical development in this sensitive area," the Superintendence wrote. But the Superintendence will drop its objection if the third floor level is removed. The property earmarked for the development dates back to the early seventeenth century. The Senglea Historical Society is also objecting because the hotel will not only darken the neighbour- ing internal yards but will dwarf the 16th century cupola of the church of St Julian's. A 36-year old diver who was work- ing on a caisson in the Palumbo shipyard in Bormla died yesterday after allegedly getting stuck in a gate valve. The diver went underwater at 11.30am to start work on the dock gate. After some time had passed and he still hadn't surfaced, somebody at the shipyard called for assistance and divers from the Civil Protection Unit and from the Armed Forces' Explosive Ordnance Disposal unit, as well as a medical team arrived on the scene. Five divers conducted a search for the missing worker and eventually found him stuck in a gate valve. It has not yet been confirmed how he ended there, but sources have suggested that somebody who was not aware of the diver's presence opened a valve, consequently drag- ging him into the hole with a great force. The diver was rushed to Mater Dei Hospital but was certified dead on arrival. This is the first fatal workplace tragedy this year. Police from the Bormla district are investigating the case. Superintendence objects to Senglea hotel Shipyard worker dies Photomontage presented to MEPA by Senglea Historical Society Patrick Vella - lost his life while on duty. Photo: Facebook