OAR@UM Collection:https://www.um.edu.mt/library/oar/handle/123456789/51772024-03-28T22:01:07Z2024-03-28T22:01:07ZThe VAT status of holding companies in Maltahttps://www.um.edu.mt/library/oar/handle/123456789/190452017-05-17T01:15:43Z2012-01-01T00:00:00ZTitle: The VAT status of holding companies in Malta
Abstract: Purpose This study examines the circumstances in which a holding company acquires the status of a taxable person for VAT purposes in Malta and analyses the VAT consequences of that status in terms of registration and input VAT recovery. In particular, it reviews relevant case law of the Court of Justice of the European Union (CJEU), analyses how leading local advisors treat holding companies for VAT purposes and compares the local practice to the criteria established at CJEU level.
Design The objectives of this study were achieved through a series of semi-structured interviews with selected tax advisors from local audit firms. The VAT Department’s standpoint was also obtained.
Findings The results indicate that the jurisprudence concerning holding companies is not always consistent. Consequently, there is no uniform interpretation of CJEU case law among local practitioners. The study ascertains that although a pure holding company is not considered a taxable person for VAT purposes, the moment it performs additional activities for a consideration (such as the provision of management and advisory services to its subsidiaries and also the mere granting of one interest-bearing loan), would qualify it as a taxable person. In Malta, a holding company which is regarded as a taxable person is entitled to claim full refunds of VAT directly incurred in connection with the provision of services to its subsidiaries and on general expenses directly incurred in connection with the overall business activity.
Conclusion CJEU case law seems to be adding unnecessary complexities to the EU VAT system which are bringing about contrasting interpretations among different practitioners in different member states. Given that it is very unlikely that the issue will be addressed at EU level, this dissertation identifies various ways in which the main VAT principles of fiscal neutrality and harmonisation could be safeguarded.
Value In the absence of specific guidelines relating to the VAT treatment of holding companies, this research sought to fill this apparent gap. In the case law that will inevitably be developed in the coming years, it would be preferable if the CJEU returns to a simpler test to determine the extent to which a holding company can recover input VAT. This will ensure legal certainty for holding companies and the EU VAT system.
Description: B.ACCTY.(HONS)2012-01-01T00:00:00ZBudgeting within Maltese voluntary organisationshttps://www.um.edu.mt/library/oar/handle/123456789/125472018-04-23T09:20:56Z2012-01-01T00:00:00ZTitle: Budgeting within Maltese voluntary organisations
Abstract: Purpose: Considering that research relating to voluntary organisations (VOs) in Malta is still lacking and the regulation of such entities has recently commenced; it was considered relevant to conduct research with the aim of portraying a profile of the situation of budgeting within Maltese VOs. The study set out to indicate the extent to which Maltese VOs use budgets as a tool to promote better financial management, and whether any characteristics of VOs exist, which could be associated with whether VOs prepare budgets.
Design: Preliminary research indicated that larger VOs are more likely to use budgets. Thus, a hypothesis was developed and a survey was conducted among VOs enrolled with the Commissioner for Voluntary Organisations; in which, 141 out of a population of 506 VOs participated.
Findings: Predominantly, VOs were found to use budgets and generally they feel that when preparing budgets they are managing their finances better. With regards to the main hypothesis, no association was found to exist between the size of VOs and whether they use budgets. However, it was established that VOs that consider finances to be important and VOs that have active volunteers are more likely to use budgets.
Conclusions: The findings signify that local VOs are not only concerned about managing their finances but they are also taking action, such as preparing budgets, to manage their finances. However, from the statistical analysis of the responses obtained, one could not easily generalise whether distinctive features of VOs exist, which could be associated with whether VOs prepare budgets.
Implications: The findings derived from this research call for the need for more training to be offered to local VOs in order to sustain their willingness to manage their finances.
Description: B.ACCTY.(HONS)2012-01-01T00:00:00ZTransforming an unused quarry : choosing between two alternative projects : a feasibility study of setting up a go-karting facility or a boat storage yardhttps://www.um.edu.mt/library/oar/handle/123456789/78432016-01-29T02:27:28Z2012-01-01T00:00:00ZTitle: Transforming an unused quarry : choosing between two alternative projects : a feasibility study of setting up a go-karting facility or a boat storage yard
Abstract: PURPOSE: The main objective of the study is to assess the financial viability, or otherwise, of operating a go-karting facility or a boat storage yard, after a disused soft stone quarry is back filled with inert waste. After conducting such feasibility studies, if any of the project results to be feasible, the best business opportunity is chosen. DESIGN: The study is mainly supported by primary data from questionnaires and interviews with relevant persons. An in-depth research of the capital outlay was essential to commence planning either of the two projects and the infilling facility. Moreover, the following estimates were arrived at: demand, revenues and expenditures, profit or loss projections and cash flow forecasts. Additionally, literature regarding capital budgeting was consulted to determine the most effective tool to use for investment appraisal. FINDINGS and CONCLUSIONS: The results indicated that the go-karting facility should be rejected. On the other hand, the boat storage yard gave rise to a positive high net present value and hence it was advised to be implemented. However, the acceptance decision lies in the hands of the owners. IMPLICATIONS/VALUE: This study is useful since in areas like Mqabba, there are big clusters of quarries, most of them unused and some of them still in operation. It would therefore set an example of how informed decision making should be done, and reduce the tendency of relying only on instinctive feelings. Every quarry owner is interested to make the most of his asset, both when in operation and after finishing extracting raw materials from it.
Description: B.ACCTY.(HONS)2012-01-01T00:00:00ZThe impact of performance related pay on employees : a case study of a Maltese listed entityhttps://www.um.edu.mt/library/oar/handle/123456789/55922015-10-19T13:45:16Z2012-01-01T00:00:00ZTitle: The impact of performance related pay on employees : a case study of a Maltese listed entity
Abstract: Purpose: Performance Related Pay (PRP) is a scheme that intends to boost employees' performance and motivation by linking financial incentives to individuals' performance. This study intends to conceptualise the various elements that contribute towards the success and failure of a PRP scheme implemented in an organisation. Design: This research is conducted using a qualitative case study to investigate a public-listed financial institution based in Malta within a real life scenario. Data was gathered through a series of interviews with managers and employees subjected to the PRP scheme implemented by the organisation. Findings: From the interviews conducted, it emerged that the main benefits gained from PRP was enhanced performance through increased motivation and organisational direction. A number of downsides were also identified, mainly attributable to the human element present in the scheme such as morality, judgement and pressures on employees. Conclusions: On the whole the scheme appears to be beneficial to both the organisation and employees. However this is only possible through controls and monitoring implemented by the organisations to limit the downsides. Implications The major implications resulting from this study are that although the majority of the themes identified are in line with what is found in the literature available, some of the identified factors seem to be more apparent in the local context, mainly the issues of familiarity among employees and morality. Also, the fact that the scheme appears to be operating successfully, raises the question of the validity of pressures to abolish PRP.
Description: B.ACCTY.(HONS)2012-01-01T00:00:00Z