Most taxpayers comply with their tax obligations, while some are determined not to. The practices of tax evasion, tax fraud and failure to pay tax dues on time are widespread. Not only are they illegal and rob the government of revenue, they also create distortions in the allocation of resources and widen inequalities. The Minister of Finance, Clyde Caruana, has taken a clear stand against the culture that shuns fiscal rectitude. He was speaking in parliament last Monday during a debate on a motion moved by the opposition calling for the repeal of a legal notice issued in November that allows companies to sell off property to settle their taxes. Caruana noted that the government was owed €5 billion in tax arrears. “The government is not an overdraft facility,” he said, going on to warn businesses that “from now on, taxes due have to be paid promptly. Secondly, attempts will be made to collect what was due in the past.” If the minister has a concrete plan in mind to carry through these laudable intentions, then he deserves the support of the whole community, which relies on free public services to thrive. However, every finance minister invariably preaches the importance of...
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