The collection of tax in Malta as regulated by the provisions of the income tax act 1948

Abstract

Chapter One gives an outline of income tax collection in Malta. Prior to 1972, the tax which became due on assessment was mainly collected through direct payment. However in 1973, in an effort to render collection more simple the P.A.Y.E. and P.T. systems were introduced so that the tax started to be collected in the year during which the income itself was accruing or being earned. Chapter Two deals with the operation of the P.A.Y.E. system which applies to all income which falls within section 5(1)(b). Chapter Three examines the operation of the P.T. system which applies to all cases where the taxpayer has income which is not emoluments. Chapter Four considers other methods of tax collection such as those relating to non-residents and companies paying out certain interests. Chapter Five considers the penalties for those taxpayers who fail to comply with the provisions regulating the collection of tax and examines the executive powers of the Commissioner of Inland Revenue to enforce the collection of tax. In conclusion, a brief critical analysis of the efficiency of the collection system in practice and some suggestions for improvements of the system are made.