Issue link: https://maltatoday.uberflip.com/i/975483
8 PAUL COCKS MALTA has declared itself against plans by the European Commis- sion to tax the digital turnover of large companies, calling instead for fair long-term solutions that do not cause disparity within and outside the European Union. At the Informal Economy and Fi- nance (Ecofin) Ministers meeting, held in Sofia, Bulgaria, yesterday, Malta joined Luxembourg and oth- er smaller nations in criticising the plans, which were first presented last month and which call for a 3 percent levy on the digital revenues of large multinational corporations such as Google, Facebook and Am- azon. Big web companies are accused by the Commission and some EU states of paying too little tax in Eu- rope, exploiting an outdated sys- tem that has allowed them to shift profits to low-tax countries. Some 200 companies would fall within the scope of the new tax, European officials said, estimat- ing additional annual revenues of about €5 billion at EU level. But the proposed levy on corporate turnover would be a major shift from existing rules, whereby com- panies are charged on their prof- its and pay no tax if they report losses. Finance Minister Edward Sci- cluna said that the digitisation of the economy poses a number of challenges, not least taxation ones, but insisted on the need to first determine whether those taxation challenges were local or more wide-spread. He said the issue had to be ring- fenced and questioned the need to go for the quick-fixes that are cur- rently being explored. "Malta is in favour of long-term permanent solutions which are agreed to by international consen- sus under the aegis of the OECD," he said. "This does not necessar- ily mean that finding them should take a long time. Rather, what Mal- ta is proposing is finding long-term solutions that can be attained ex- pediently without causing unnec- essary disruptions and disparities within and outside the EU." In the absence of a deal, some states are already moving alone. Spain, which backs the commis- sion's plans along with larger EU members such as Italy and France, said yesterday it would introduce its own levy on digital companies. German Finance Minister Olaf Scholz, who took office last month, avoided taking a clear line on the issue, in what could be seen as a partial shift from Berlin's initial open support for a turnover tax. He told a news conference mak- ing digital companies pay more taxes was a "moral question" that needed to be addressed. But he refrained from clarifying how to tackle the issue and did not take the floor during the ministerial de- bate on the matter. The Organisation for Economic Cooperation and Development (OECD), the body that coordinates tax policies among rich countries worldwide, has said it is ready to speed up work on a blueprint for a global reform – to include the United States, Japan and China – which was already under way and due in 2020. News maltatoday SUNDAY 29 APRIL 2018 MINISTRY FOR FINANCE The Ministry for Finance is committed to promote and improve its administrative operations by simplifying the processes and deliver within the stipulated timeframes. The Ministry is seeking to recruit individuals who are ready to join a dynamic team and thus also offering an opportunity to those individuals who would like to start a career within the Public Service. The Ministry is receiving applications for the post of: Economics Officer Applications together with a curriculum vitae will be received by the Recruitment Section in the Ministry for Finance 158, Cavalier House, Old Mint Street, Valletta, or through the Online Government Recruitment Portal on http://recruitment.gov.mt by not later than noon (CET) of Monday 7 th May 2018. Further details may be obtained from the Government Gazette, number 19,981 dated 20 th April 2018: https://gov.mt/en/Government/Government%20Gazette/Docu ments/2018/04/Government%20Gazette%20- %2020th%20April.pdf or by sending an e-mail to the Recruitment Section on recruitment.mfin@gov.mt. Application forms may be downloaded from: https://publicservice.gov.mt/en/people/Pages/PeopleResourci ngandCompliance/FormsandTemplates.aspx Ministry for Finance, 158, Cavalier House, Old Mint Street, Valletta Tel: 25998431 Email: recruitment.mfin@gov.mt JAMES DEBONO THE Planning Authority's planning commission has is- sued a full permit for four vil- las outside development zones in Kalkara, that were granted a preliminary permit days before the last general election. The commission's members Elisabeth Ellul and Mariello Spiteri overturned the plan- ning directorate's insistence that the permit had been in breach of policies and should not be granted. The preliminary permit on the vacant plot of land was is- sued despite four prior refus- als by the Planning Authority for development on the same 1,400sq.m site, which includes two mature carob trees. The proposal involves the construction of four terraced houses having a floor-space which varies between 233sq.m and 286sq.m, which means they go beyond the 200sq.m al- lowance for each dwelling unit. But subsequently the case of- ficer argued that although the development had been accept- ed in principle in May 2017, the proposed terraced houses exceeded the 200sq.m thresh- old of floor-space permitted in the local plan in a policy regu- lating development in the rural hamlet. Moreover, according to the case officer "the proposed de- velopment exceeds the depth of the adjoining properties and will result in the overdevelop- ment of the site, in conflict with the objectives of Local Plan". However, the two-member board dismissed the case of- ficer's report citing part of the law stating that when taking a decision the board must have regard to "surrounding legal commitments." The project's architect Robert Musumeci, who was represent- ing applicant Norbert Bellia, had insisted that the building envelope had already been es- tablished in the outline permit and cited two previous cases within the Santu Rokku hamlet where the 200sq.m threshold was not applied. The Environment and Re- sources Authority was also steadfast in its objections warning that the final approval of the proposal would consti- tute a precedent for similar de- velopment on existing vacant plots within the Santu Rokku hamlet, and would open the floodgates for other similar developments in similar loca- tions. jdebono@mediatoday.com.mt PA ignores breach of rules in pre-electoral Kalkara villa permits Malta blocks EU plans for a digital tax on corporate turnover Finance Minister Edward Scicluna speaking to the media after the meeting in Sofia, Bulgaria, yesterday