Shift of burden of proof on to the tax authorities

A recent decision by the Administrative Review Tribunal (ART) involving additional tax imposed by the Maltese tax authorities has shifted the burden of proof on the tax authorities, while tax payers will no longer be considered guilty until they are proved innocent.  This contrasts with other decisions by the Maltese Courts, in which tax assessments […]

Written By ACT Team

On June 16, 2014
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A recent decision by the Administrative Review Tribunal (ART) involving additional tax imposed by the Maltese tax authorities has shifted the burden of proof on the tax authorities, while tax payers will no longer be considered guilty until they are proved innocent.  This contrasts with other decisions by the Maltese Courts, in which tax assessments issued by the tax authorities are considered to be correct and it is up to the tax payer to prove that such assessments are incorrect so as to prove his innocence.

Nevertheless jurisprudence seems to be taking a different stand as the 2012 judgment delivered by the Constitutional Court in the case of John Geranzi Limited vs Commissioner of Inland Revenue (CIR) has shown.  In this case, the Constitutional Court ordered the CIR to pay the sum of €30,000 in compensation to the tax payer.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].