Author: SME Chamber

More than any sector, commerce has fostered and campaigned for the realisation of the Single Market. Therefore GRTU is delighted with the adoption by the European Commission of the Communications on the implementation of the Services Directive and on better governance for the Single Market. The Communications demonstrate that implementation of EU legislation, in particular the Services Directive, must be improved and there is a need for a firmer enforcement policy to boost growth.

Europe is still a long way off a smooth functioning internal market. Actions are necessary to make it easier for service providers, in particular retailers, to sell cross-border, establish and conduct a retail business in another Member State and enable companies to fully benefit from a true internal market. If we want to make a success of the Single Market, Member States and the Commission need to work together to remove barriers that are an impediment to growth. We strongly support the Commission's engagement to open more efficient infringement procedures against violations of the Services Directive. We are particularly pleased that the Commission plans to focus on sectors with the largest growth potential which includes the retail sector. Retail plays a key role in the European economy, particularly in terms of its economic contribution and its role as an employer.

GRTU is a strong supporter of the Commission's initiative to identify the need to address a number of bottlenecks for growth in the retail sector and we are looking forward to the adoption of a European Retail Action Plan later this year.

Eligible enterprises include:

Manufacturers

Service providers

Licensing and Franchising

Companies seeking joint ventures and strategic alliances

Technology Transfer

Companies seeking R&D opportunities

Companies seeking to import finished products are NOT eligible.

As part of its assistance Malta Enterprise will endeavour to set-up one-to-one meetings for participants through its institutional networks. Malta Enterprise will also refund eligible participants up to 60% of flight costs and a per diem allowance. Refund is for one representative per participating company.

Application forms together with a €250 deposit should be sent to us or forwarded by hand by Friday 1st June, 2012. This deposit will be fully refunded together with the financial assistance referred to above after the event. In cases where a company cancels its participation, any cancellation costs incurred by Malta Enterprise on behalf of the company will be deducted from this deposit. For further information please contact Robert Falzon on 25423239 or

Why did you become an entrepreneur? First of all I like business and it was a family business but I did study as well. How have you come to choose your line of business?

It was a family business so I continued the line and expand it into new markets

Where did you go on your last holiday?

England – the thing I liked most  was the country side

What is your earliest memory?

Summer – When I was a child

If you could chose to be someone famous who would you be and why?

I don't think I would like to be someone famous because basically then you are always the centre of attraction and without privacy. I am  happy as I am!!

Stellina Galea is the living proof this is possible. She went through a 16 week programme during which her life changed completely. This is what she went through! Stellina Galea is a 48 year old woman in business; an accountant by profession and a specialized travel agent. With all the stress that a woman can encounter when having both a family and a career it was impossible believing that better attitudes in her lifestyle could make her feel better until she met Mr John Xuereb, a life coach who succeeded in proving her wrong.

"I lead a very stressful life, juggling between my profession, business and career. I have been married for 26 years and have a 20 year old son". This is the life of Stellina Galea, she describes that along the years with each passing day she felt more tired and therefore did not exercise and gained excessive weight. "For people that have such an active and hectic lifestyle like mine this was very discouraging and depressing. Everybody used to say that this was normal… that I was going through a middle-age crisis" said Mrs Galea. She however neither believed nor accepted this.

The welcome change came last summer, in July, when Stellina met John Xuereb of Bodies N' Motion and her life changed dramatically. Not only did John Xuereb change her life but also the lives of her family members. Stellina Galea stated that "My husband, my son and I lost 14 kilos of fat, a total of 42 kilos in a family of three!" and what is most striking is that although the hectic lifestyle she and her family manage they still succeed in keeping all that fat away.

Mrs Galea explained the way her lifestyle changed to the better. She emphasized that she felt more energetic, noticed more productivity during her day of work and she felt she was managing her business with more energy and ease. In a few words she had a more optimistic view of her life but the best thing she experienced was that she dedicated more time to herself together with all the activity she goes trough on a daily basis.

For Stellina Galea the most important benefit of the weight loss programme was the way that: "my family and I experienced the benefit of a higher energy level. Moreover, we do feel and look better."

Mrs Galea also shared that her husband, even though he is also an accountant by profession, found a suitable time to join in and feel the marvelous benefits of this programme. Stellina Galea stated that her husband "suffered from high cholesterol levels for over 12 years and was on intense medication methods. He was also told that he would never be able to neither reduce his medication nor get rid of it all." Stellina's husband was having to increase his medication each year until he met John Xuereb and completed one of his 16 week life transformation programmes and his cholesterol came back to its normal levels. Moreover, what is most striking is that Mr Galea managed to reduce his medicinal intake to zero.

"I now weigh as much as I used to when I was 21 years old and I never imagined that with changes to and the elimination of habits, which we stick to unconditionally, such a positive thing could make me feel and look better and younger at the same time. I feel like I went into a time machine and went back 25 years in time" concluded Stellina Galea.

The Budget Measures Implementation Act, 2012, which was published a few weeks ago, introduced various changes to the Value Added Tax Act (‘VAT Act'). A brief overview of some of the key changes is provided in the following table while further details may be found below.

New administrative penalty

One of the most notable changes is the introduction of a new article 37A in the VAT Act which imposes an administrative penalty on persons registered under article 12 thereof for failure to accurately report their Malta VAT due.

VAT Form 004

An article 12 VAT registration mostly applies to persons who make "exempt without credit" supplies and typically includes businesses operating in the remote gaming, financial services and healthcare industries.

Generally, these persons are obliged to notify the Malta tax authorities of purchases of goods and services on which they are required to account for Malta VAT in terms of the ‘reverse charge' mechanism. For the purpose thereof, such persons must submit to the tax authorities ‘notices of payment' (VAT Forms 004) along with the payment of any VAT due.

Understated or assessed tax

In general terms, the new article 37A provides that an article 12 VAT registered person becomes liable to an administrative penalty in the following situations:

where such person submits a VAT Form 004 which contains an understatement of Malta VAT due;

where such person fails to submit a VAT Form 004 within the stipulated timeframe, subsequent to which the Commissioner of VAT makes an assessment upon that person for the tax payable.

Administrative penalty

The penalty which may be imposed on an article 12 VAT registered person amounts to 20% of the understated or assessed tax. As such, failure to satisfy the necessary reporting obligations could have a considerable financial impact on that person. To avoid these unnecessary costs, businesses should ensure that their internal procedures are adequate to meet their VAT reporting obligations.

It is remarkable that the legislation, as currently enacted, does not provide for a reduction of the administrative penalty introduced by article 37A, while such a reduction is possible in comparable situations for article 10 VAT registered persons. More specifically, where an article 10 VAT registered person understates Malta VAT due, the VAT Act provides for the possibility of a reduction of the applicable administrative penalty from 20% to 10% upon the satisfaction of certain conditions. As no express provision to this effect has been introduced for understatements of VAT in a VAT Form 004 it seems that article 12 VAT registered persons are not entitled to benefit from any such reduction.

Clarification of article 10

A clarification has been added to the VAT Act stating that article 10 in no way prevents or is deemed to prevent the Commissioner of VAT from enforcing his obligations under Council Regulation (EU) No. 904/2010 on administrative cooperation and combating fraud in the field of value added tax.

New notification obligations

The obligation to notify the Commissioner of VAT of any changes in circumstances which affect the particulars declared in the application for VAT registration has been formally extended to cover article 11 and article 12 registrants. These notifications, in essence, allow the VAT Department to ensure that the taxable person is registered for VAT under the correct article and is, consequently, complying with the relevant obligations.

Limitation on interest

A limitation on the maximum amount of interest (on outstanding sums of VAT) that can accrue in a particular tax period has been introduced. Interest will no longer accrue in respect of a tax period where the total amount of payments appropriated to that period is equivalent to or exceeds the amount of tax payable for that tax period.

Example

Assume that the VAT payable on a VAT return is €10,000 and the return, together with the relevant payment of VAT is submitted one month late resulting in the imposition of an administrative penalty of €100 and interest of €75.

In accordance with the VAT Act, the payment submitted with the VAT return (i.e. the €10,000) is appropriated to the administrative penalty and interest first. The remainder (€9,825) is the amount that is appropriated to the VAT due, leaving an outstanding VAT balance of €175.

Previously, interest would have applied to the outstanding €175 of VAT. However, in light of the recent amendment, no further interest would accrue in that tax period given that the payment appropriated to it (i.e. the €10,000) is equivalent to the tax payable for that period.

Info: www.deloitte.com.mt

For further information, please contact:

Mark Grech – – 23432000

GRTU President Paul Abela has this month participated in two important EU level appointments. Mr Abela is the Maltese employers` member of the ESF Committee while the ILO Convention in Geneva was the first ever participation of GRTU in such an important and high level event.

101^st ILO annual conference

The ILO is the international organization responsible for drawing up and overseeing international labour standards. It is the only 'tripartite' United Nations agency that brings together representatives of governments, employers and workers to jointly shape policies and programmes promoting Decent Work for all. This unique arrangement gives the ILO an edge in incorporating 'real world' knowledge about employment and work.

Almost 5000 delegates from the ILO's 185 Member States are meeting at the 101st session of the International Labour Conference. Each Member State of the ILO is represented by a delegation consisting of two government delegates, an employer delegate, a workers' delegate and their respective advisers.

ESF Committee meeting

The European Social Fund (ESF) is one of the EU's Structural Funds, set up to reduce differences in prosperity and living standards across EU Member States and regions, and therefore promoting economic and social cohesion. The ESF is devoted to promoting employment in the EU. It helps Member States make Europe's workforce and companies better equipped to face new, global challenges. In short:

Funding is spread across the Member States and regions, in particular those where economic development is less advanced.

It is a key element of the EU's 2020 strategy for Growth and Jobs targeted at improving the lives of EU citizens by giving them better skills and better job prospects.

Over the period 2007-2013 some €75 billion will be distributed to the EU Member States and regions to achieve its goals.

Amongst the topics discussed were the Lifelong Learning Programme, Apprenticeships and youth employment and entrepreneurship.

MoU bejn il-Gvern u l-GRTU dwar il-Crafts Village f'Ta' Qali li jaghti future ahjar lis-settur tal-Artigjanat Malti – Il-Malta Industrial Parks u l-GRTU iffirmaw Memorandum of Understanding dwar il-Crafts Village f'Ta' Qali li jelenka r-responsabbiltajiet u l-impenji tal-Gvern u tas-sidien tal-hwienet tax-xoghol f'dan il-villaġġ bl-għan li jkun jista' jipproċedi l-proċess ta' tisbiħ ta' din iż-żona li tilqa' fiha negozji tal-artiġġjanat Malti u tkun stabbilità fuq bazi soda l-pozizzjoni kuntrattwali ta' kull artiggjan li jahdem mill-Crafts Village.

Skont dan il-Memorandum, il-Malta Industrial Parks se tiehu hsieb it-tisbih generali u l-investiment li jrid isir fuq l-infrastruttura fiż-żoni komuni, kif ukoll tindif u landscaping tal-Crafts Village. Wara li jingħataw it-tenders u wara li ssir konsultazzjoni mal-operaturi nfushom biex jiġi kkawżat l-inqas inkonvenjent possibli, l-MIP se tagħti wiċċ ġdid lil dawk it-toroq li l-aktar jeħtieġu attenzjoni, liema xoghol mistenni jibda fil-Harifa.

Min-naħa tagħha, l-GRTU qed taqbel li tinkoraġġixxi lill-artiġġjani biex jinvestu fl-operat u l-bini tagħhom sabiex b'hekk ikunu qed jaħdmu mal-MIP fl-iżvilupp taż-żona.

Filwaqt illi l-operaturi illum igawdu minn drittijiet stipulati f'konvenji vigenti bhal, per ezempju, konċessjoni ta' 65 sena fuq l-art talli jinvestu somma specifika f'bini u rata ta' cens stabbilita, permezz tal-MoU il-Gvern iddikkjara l-intenzjoni tieghu illi jmur lil hinn minn dak stipulat fil-konvenju. F'dan il-kuntest, l-MoU jghid illi  l-MIP lesta zzomm l-istess rata ta' cens f'kaz illi dan jigi trasferit lil terzi sakemm min ikun qed jiehu c-cens ikun artiggjan. L-ghan hu li Ta' Qali Crafts Village ikun primarjament zona ta' artigjanat Malti u ghaldaqstant l-MOU qed jipprovdi termini aktar favorevoli ghal dawk l-artiġġjani li jaħdmu s-sengħa tagħhom mill-Crafts Village.

Il-Memorandum jesprimi wkoll l-intenzjoni tal-MIP illi tkun flessibbli fir-rigward tas-somma ta' investiment illi jrid isir mis-sidien tal-hwienet tax-xoghol kif stipulat fil-konvenji, biex b'hekk l-operaturi jkunu jistghu jaghmlu proposta ta' investiment aktar konformi ma' dak li jifilhu ghalih illum.

l-proposti għall-iżvilupp tal-hwienet tax-xoghol iridu jkunu approvati mill-MIP sabiex tinżamm kwalità tajba fid-disinn u l-materjali li jintużaw u b'hekk titjieb id-dehra taz-zona tal-villagg kollu. Intant, l-MIP qed tressaq ukoll talba sabiex il-villaġġ kollu jingħata status ta' DNO mill-MEPA u b'hekk il-proċess għall-iżvilupp mill-ġdid tal-hwienet tax-xoghol ikun jista' jitħaffef aktar.

Is-sidien tal-hwienet tax-xoghol jistghu ukoll jibbenefikaw mill-iskemi tal-Malta Enterprise sabiex jaghmlu dawn l-investimenti, filwaqt li jistghu jaghmlu uzu mill-ghajnuna kemm tal-Korporazzjoni kif ukoll tal-GRTU sabiex jidentifikaw liema skemi ta' assistenza huma applikabli ghalihom u biex jaraw x'iridu jaghmlu biex jibbenefikaw mill-assistenza.

Il-Ministru tal-Finanzi, l-Ekonomija u Investiment Tonio Fenech qal li dan il-Ftehim huwa pass importanti li jagħti aktar serħan tal-moħħ lill-artiġġjani li joperaw f'dan il-villaġġ, li se jkunu jistgħu jinvestu fil-proprjetà tagħhom bl-għarfien li dan se jibqa' għandhom għal 65 sena u li ż-żona se tingħatalha dehra li tixiriqilha. Huwa fakkar kif il-Ftehim jipprovdi wkoll għall-possibiltà li l-MIP tgħin lill-istess sidien biex jinvestu fil-hwienet tax-xoghol tagħhom. Din l-għajnuna tiżdied ma' skemi oħra tal-Gvern li jistgħu jgawdu minnhom dawn is-sidien ta' negozju, fosthom l-iskema MicroInvest amministrata mill-Malta Enterprise li tippermettilhom jieħdu lura 40% tal-investiment li jkunu għamlu bħala kreditu tat-taxxa sa massimu ta' 25,000 ewro, l-iskema Micro Credit, u wkoll l-skema gdida ta' Micro Guarantee li dalwaqt se tithabbar.

Id-Direttur Generali tal-GRTU, is-Sur Vince Farrugia qal li dan il-ftehim hu ta' sodisfazzjon kbir ghall-GRTU u ghall-intraprizi tal-artigjanat Malti " Hu ta' sodiisfazzjon partikolari ghaliex wara negozjati fit-tul issa l-GRTU irnexxilha tiffirma ftehim favorevoli hafna ghas-sidien u artigjani li joperaw f' Ta' Qali u hu ta' sostenn ghal kull wiehed u wahda minnhom. Hi l-intenzjoni tal-GRTU li taghti l-ghajnuna kollha taghha lis-settur tal-artigjanat f'Malta, biex bis-sahha ta' arrangamenti godda u thaddim ta skemi ta' sapport imhaddma mil-Gvern Malti u b'finanzjati mil- Unjoni Ewropeja s-settur tal-artigjanat jinghata futur gdid", sostna Vince Farrugia id-Direttur Generali tal-GRTU.

Joan Haber President tal-Crafts Enterprise Sector tal-GRTU qalet li : "wara snin ta' laqghat, diskussjonijiet u argumenti, sa fl-ahhar wasalna mal-Gvern fi ftehim fejn kulhadd ceda bicca mid-differenzi li kienu qedghin izommunha, u issa sta ghal-artigjani li ilhom is-snin jahdmu minn Ta' Qali biex jahtfu l-opportunitajiet godda li qedghin jinfethu ghalihom bis-sahha ta' dan il-ftehim halli flimkien nibnu futur ahjar ghal-intraprizi taghna u l-artigjanat Malti.

Hija qalet: "Ghalija illum huwa jum storiku. Fl-ahhar ahna li nahdmu fil-kamp tal-artiggjanat wasalna biex niffirmaw il-kuntratt proprju biex l-art li qed nokkupaw tinghatalna b'cens. Issa veru nistghu nibdew ninvestu f'fabbrika li se tkun taghna ghal tul ta' zmien. Jien ilni Ta' Qali 32 sena u dejjem bil-hsieb li min mument ghal iehor il-fabbrika se titwaqqa' . Naturalment dejjem ghamilna investiment meqjuz u temporanju. Bhali ghamlu il-bicca l-kbira tal-operaturi tal-artiggjanat ta' Ta' Qali. Issa fl-ahhar nafu fiz-zgur li ahna f' Ta' Qali ghandna futur sod".

Joan Haber f'isem l-artigjani ta' Ta' Qali u l-GRTU Crafts Enterprise Sector irringrazzjat lill-Ministru tal-Finanzi, Ekonomija u Investiment Tonio Fenech li wassal iz-zewg partijiet ghal dan il-ftehim u irringrazzjat ukoll lic-Chairman prezenti tal- MIP u Malta Enterprise is-Sur Lawrence Zammit kif ukoll lic-Chairman ta' qabel, is-Sur Alan Camilleri li hadem hafna biex l-arrangamenti u l-kundizzjonijiet godda favorevoli ghall-operaturi ta' Ta' Qali. Hi awgurat li dan l-ispirtu ta' kooperazjoni jitkompla u li mill-aktar fis titwaqqaf Task Force li tanalizza u tindirizza l-problemi tal-artigjanat Malti biex jithaffef il-programm ta' tishih ta' dan is-settur li issa ser jitwettaq permezz ta' dan il-ftehim.

Director General GRTU an Malta Employers Councillor at EESC, Vincent Farrugia has this week participated actively in the 11th Meeting of the EU-Croatia Joint Steering Committee as a member of the Committee. In his presentation Vince Farrugia congratulated Croatia as the new EU member as from 1st July 2013 and stressed the importance of all social parties and civil society coming together closer then ever before to devise an effective Post-Accession Strategy.

EESC Councillor Vince Farrugia said that while Croatia, like the other EU new members of the EU's  recent enlargements, had good and effective Pre-Accession Strategies, but he notices that like the 12, Croatia has not  really effective Post-Accession Strategies. The impact  of this  absence was that there was not much determined focus with the result that funds and efforts did not have the desired immediate positive impact on a wide cross section of social and economic sectors. On the contrary many SME's and small and micro  enterprises especially suffered substantially and as a result the EU image suffered unnecessarily.

Malta, even during these post economic recession and sovereign debt crisis hard times, proved that the EU Economic and Social model if applied correctly works.

"Malta like other EU member states is feeling the pinch of economic tightening but we have no unemployment crisis and definitely no youth unemployment and  financial budget discrepancies or any hint of a problem related to our sovereign debt. For the EU Model to give positive results including jobs and economic growth it is important that Budgetary Surveillance and adherence to the Stability and Growth targets and new European Economic Semester rules are allowed to work in a well geared institutional framework. This requires extensive capacity building which is extended to the private sector and not just restricted to the confines of the Public Sector.

It is important that the National Report Programme is drafted with the full participation of all stakeholders and seen to be opened by the social partners. It is essential that Croatia's National Council for Economic and Social Development takes effective control of the negotiation and drafting of a Nation Social and Economic Contract aimed at seeing Croatia through the difficult early years" stressed Vincent Farrugia.

"Croatia has great opportunities in the EU and the EU will benefit with the addition of Croatia. But Croatia is joining at a difficult period and that is why the social partners must not leave it up to the politicians in Government to own the whole tremendous project of extensive reforms".

Success comes earlier and more all incorporating if you work together and share the burden that will surely lead to shared greater prosperity for all Croatian in the shortest possible time frame" concluded Vince Farrugia.

F'dawn l-aħħar għaxar snin, il-politika
ta' koeżjoni tal-UnjoniEwropea (UE) tat kontribut ġenwin għall-konverġenza u
t-tkabbir fl-UE. Madwar l-UE kollha, din il-politika ħolqot iktar minn miljun impjieg,
investiet fit-taħriġ biex ittejjeb l-impjegabilità ta' 'l fuq minn għaxar miljun ruħ,
ikkofinanzja til-bini ta' toroq u linjital-ferrovija, u waqqfet mill-inqas
800,000 Intrapriżi Żgħar u Medji

F'Ottubru li għadda
l-KummissjoniEwropeaadottatpropostiġoddagħall-politika ta'
koeżjonigħall-perjodu 2014-2020.Dawn il-proposti ġew imfassla biex jagħtu spinta
lit-tkabbir u lill-impjiegi madwar l-Ewropa biex jintlaħqu l-miri tal-Istrateġija
‘Ewropa 2020'.

Il-MEUSAC, flimkien
mad-Dipartimentgħall-Ippjanar u l-Koordinazzjonital-Prijoritajiet fi ħdan
l-Uffiċċjutal-Prim Ministru, ser jorganizza laqgħa ta'
konsultazzjoni dwar il-proposti tal-Kummissjoni għall-politika ta' koeżjoni
2014-2020.Din il-laqgħa ser issir nhar l-Erbgħa 20 ta' Ġunju 2012, f'Dar l-Ewropa,
254, Triq San Pawl, il-Belt Valletta fis-1.30pm.

Min
jixtieq jattendi huwa ġentilment mitlub jikeb lilll-indirizz .