expected to up tax revenue dramatically
There is an air of confidence wafting toward the Tax Compliance Unit,
as details of the benchmarks for the first professional classes are
However, what will surface is expected to send shock waves throughout
Malta's professional community. Namely, it will unravel the oceanic
discrepancy between declared income and real income.
The Business Times has taken five professions and made calculations
based on their relative income and has compared them with their declared
income from a survey carried out by The Business Times itself.
From the investigations carried out by The Business Times, the discrepancy
between declared income can vary as much as a staggering 300 per cent
and the total tax sum avoided would normally be equivalent to the entire
amount declared to the Inland Revenue Department.
The benchmarking exercise is expected to send out a wave of concern
among the professional classes, which will naturally approach the problem
by presenting more realistic revenues.
The down side to this is that, while tax revenue is expected to explode,
professionals may offset their habit of minor tax evasion by upping
their price tags a move that will undoubtedly lead to higher
But with tax revenue from the professional classes on the increase,
the government may very well start considering loosening up on the salaried
classes - an observation confirmed by the finance minister during a
parliamentary debate on Monday.
The Business Times survey:
A medical consultant would, on average, view 15 patients a day for 4
days a week, for 48 weeks a year. Each patient would be charged an average
The real income would amount to around Lm43,200.
Most medical consultants declare an annual income of Lm10,000 on average.
Rough tax avoided: Lm11,620
A lawyer would, on average, view 15 clients a day for 5 days a week,
for 47 weeks a year. Each client would be charged an average of Lm10.
The real income would be amount to Lm35,500.
Most lawyers declare an annual income of under Lm10,000.
Rough tax avoided: Lm7,200
A painter/plasterer would have one job a week, for 47 weeks a year.
Each job would bring in an average revenue of Lm600 a week.
The real income would be Lm28,200.
Most painters/plasterer declare an annual income of under Lm6,000.
Rough tax avoided: Lm6,400
An electrician would normally take one job every three days, while he
would work 320 days. Each job would bring in an average of Lm300
The real income would average Lm31,900
The declared income is normally under Lm6,000
Rough Tax avoided: Lm7,300
A hairdresser would have 15 wash, cut and blow dries a day, 6 days a
week for 47 weeks a year. Each would cost Lm8 on average.
The real income would be Lm33,840.
The declared income is around under Lm8,000.
Rough Tax avoided: Lm8,600.