Category: Archive – 2009

The Commission proposes a revised Code of Conduct for applying the Arbitration Convention to improve prevention of double taxation.

The Commission adopted on 14th September, a Communication based on the work achieved by the EU Joint Transfer Pricing Forum. The Commission and the Forum consider that the elimination of double taxation linked to transfer pricing adjustments is facilitated by constant monitoring of problems occurring in practice.

Such an exercise led to several improvements on the interpretation of the Arbitration Convention's provisions incorporated in the proposed revised Code of conduct, in particular on the reduction of the timeframe for case resolution.

The Commission proposal is the result of a monitoring exercise on the application of the Arbitration Convention (AC). Based on Member States' practical experience it was recognised that the three-year target for resolution of the cases, was proving difficult to achieve.

The revised Code clarifies and provides common interpretation of some provisions of the AC in order to facilitate resolution of many more cases within the three year time frame.

The proposed common interpretation covers the following topics: serious penalties, the scope of the AC (triangular transfer pricing and thin capitalization cases), interest charged/credited by tax administrations when a case is dealt with under the AC, the functioning of the AC (as regards rules about the deadline for the setting-up of the Advisory Commission and criteria for establishing the independence of arbitrators), the date from which a case is admissible under the AC and the inter-action of the AC and domestic litigation.

For the Communication contact Abigail Mamo @ GRTU

The Commission adopted on 4th September, a report on the use of the provisions on mutual assistance for recovery of claims relating to certain levies, duties, taxes and other measures between 2005 and 2008.

The statistics show an increase in the amounts of tax due recovered through the procedures of mutual assistance between Member States. The amounts grew six fold between 2003 and 2008. However, the amounts actually recovered are still deceivingly low in comparison with the amounts Member States claim to recover. Although it is very difficult to quantify, the available figures show that only 5% of the amounts claimed are actually recovered.

In addition, in spite of the increase in the use of mutual assistance, there are still many cases where Member States do not avail of the possibilities offered by the Directive. Therefore, the Commission recommends Member States to strengthen the recovery instruments available in their domestic legislation and invites the Council and the Parliament to adopt quickly the legislative proposal, presented on 2 February 2009, to reinforce mutual recovery assistance.

For the report contact Abigail Mamo @ GRTU.

The Commission adopted on 29th September, a Directive for an optional and temporary application of the reverse charge mechanism to supplies of certain goods and services, aiming to fight carousel fraud in a consistent manner across the European Union.

Carousel fraud is traditionally organised with small goods of high value. Recently, several Member States reported cases of carousel fraud on greenhouse gas emission allowances.

 

 

The Directive will allow the application of a reverse charge mechanism on the supply of five categories of particularly fraud sensitive goods and services, namely: computer chips, mobile phones, precious metals, perfumes and greenhouse gas emission allowances.

This can be done until 31st December 2014, for a minimum period of 2 years, to three categories of the list, of which a minimum of two must be for categories of goods.

For a copy of the Directive you can contact Abigail Mamo @ GRTU

 

The European Commission has launched a debate on a revision of the current Energy Taxation Directive (2003/96/EC of 27 October 2003), which aim:

To introduce a second pillar of energy taxation based on CO₂ emission next to the existing taxation of energy consumption (other types of energy taxation the new CO₂ taxation should cover the same energy products, which fall under the scope of Directive 2003/87/EC (Emission Trading scheme – ETS), but must exempt all cases, which are subject to the ETS: The CO₂ taxation should be complementary to the ETS and the CO₂ tax should be paid by all energy users, which are not covered by the Emission Trading Scheme. This mean it will mainly cover the agriculture and transport sector.

For the new CO₂ tax, which should be obligatory for all Member States, the Commission proposes a minimum level (between 0.01 and 0.03 €/kg CO_2).

Energy from biomass will be exempted from taxation.

Furthermore, some exemption in the current Energy Taxation Directive should be deleted or adopted (i.e. treatment of coal, exemption for gas oil used for heating, lower levels for energy used in the agriculture sector.

If you are interest in viewing the full text you are kindly asked to contact Abigail Mamo at GRTU.

GRTU President Paul Abela and Director General Vince Farrugia together with the GRTU members who were interested to participate, accompanied HE the President of Malta Dr George Abela on an official business delegation visit to Qatar. GRTU was a collaborator, with Malta Enterprise and the Ministry for Foreign Affairs being the organisers.

From feedback of both the GRTU delegates and that of our members the trade mission proved highly successful. Amongst other achievements there was the signing of the agreements on legal cooperation, exchange and cooperation in media, air transport, and a MoU between the Qatar National Olympic Committee and the Maltese Sports Council. GRTU delegated were also present for the discussions on Smart City where high ranking Smart City officials extended their commitment on Smart City Malta.

GRTU delegates met with other business organisations such as the Qatar Chamber of Commerce and Industry and others.

We have this week hosted our first meeting on Erasmus for Entrepreneurs in collaboration with Koperativi Malta. The meeting proved highly interesting for the members who attended and after a significant request from those who did not make it, another one will be organised.

The programme can be of benefit to entrepreneurs who are already established and are interested in hosting another entrepreneur in their field, an established enterprise wanting to broaden its line of business by gaining first hand experience in a foreign company in its same line, and a new entrepreneur seeking experience by being hosted in an enterprise in his line of interest.

 

New Entrepreneur

Obtain a wider business experience from an established business

Develop international connections

Gain knowledge about foreign markets

Benefit from possible co-venturing opportunities

Gain insight in to different cultures & organisation settings

Gain knowledge about critical success factors, effective planning, financial and operational management, development of innovative products & services, successful sales & marketing practices

Host Entrepreneur

Have access to new skills and innovative ideas/knowledge

Work with a fresh mind contributing new ideas and views

Gain knowledge and intelligence about foreign markets

Have the opportunity to internationalisation the business

Explore the expansion of the business in a new country

Gain the possibility of networking in Europe

How does the programme work?

New Entrepreneurs or entrepreneurs seeking to widen the line of their business travel to another EU country and spend time working with an experienced entrepreneur in his enterprise.

The matching of the new entrepreneurs with the host entrepreneurs is carried out with the help of bodies coordinating the project. New entrepreneurs can however choose by themselves in which companies they want to be hosted.

Sufficient financial assistance will be granter for the travelling entrepreneur who would be travelling for a minimum of 1 month.

 

Below is a communication the Malta Guide Dog Foundation kindly asked us to make our members aware of:

May I introduce myself, My name is Ron. Colombo and I am the Chairperson of the Malta Guide Dogs Foundation.

The Malta Guide Dogs Foundation is a fully registered NGO with the Voluntary Organizations Commission. Our object is to produce and provide trained guide dogs for the Maltese Blind and partially sighted community. A guide dog gives the blind person complete independence both at work and play, something unheard of in Malta, until we started our work.

 

We have been in existence for 4 years and during this time we have made considerable progress. Briefly, There are now four guide dogs in service with Maltese blind and partially sighted persons, two of whom have full time jobs.  A fifth trained guide dog, sponsored by the Dorloc Trust, will be arriving late this year.

We are involved with an awareness campaign and already, with very few exceptions, our guide dogs are allowed in shops, supermarkets, restaurants, and public transport.

We are in the second year of a partially funded course in mobility and orientation  for guide dog trainers, which will enable us to give our clients local training and follow up, both of which are essential. We are also planning to extend this to a Mobility and Orientation service for the blind community in general, a vital step in their rehabilitation process which is sadly lacking in Malta.

Clearly, all the above activity is very expensive, for example, a trained guide dog, which we give to our clients free of charge, costs a minimum of €12,000. We are even responsible for vet expenses and sometimes, in needy cases, we even plan to make a contribution towards the dog's food. At the moment, we are acutely short of funds and sponsorship is essential if we are to continue to make, and hopefully, increase our progress.

I think you will agree that this is a "going concern" and there will be lots to show how sponsors' money is being spent. Finally, quite apart from the "social conscience aspect, for this type of sponsorship, guide dogs are very visible and your logo, on the dogs' harnesses should give your organisation some useful publicity.

I look forward to hearing from any organization interested in sponsoring us. Apart from our email address, my contact details are: Landline 2133 9014 and Mobile 9924 6573.

Ron. Colombo.

 

GRTU has closed last week with an information session to food importers on the importance of preparing for the H1N1 Influenza Flu (Swine Flu). A detailed presentation was delivered by a representative from the Ministry for Health.

GRTU has involved its members because we believe that as a small business you are a valuable partner in our country's defence against a treat to health and the economy as the Swine Flu.

 

As we face the possibility of a wider H1N1 influenza outbreak, it is difficult to predict how the virus may or may not change. The Ministry for Health has however informed us that there is the possibility that up till the Christmas season the Swine Flu would have affected 30% of the Maltese population.

The consequences might reach well beyond the health sector and may have an impact on the ability to maintain the continuity of essential service.  The result may be disruptions in the transport systems, essential services, telecommunications, pharmaceuticals and food. Crisis preparedness in sectors outside the health sector is a responsibility which is shared amongst different players.

GRTU feels that even you as a small business should plan to be able to respond in a flexible way to varying levels of severity and be prepared to take additional steps if a potentially more serious outbreak of influenza evolves during the fall and winter.

Small businesses are the backbone of the economy and we must therefore together ensure that the wheels of the country's economy continue to turn, even if faced with absenteeism, restricted services, and supply chain disruptions. If prepared, small businesses can keep their doors open and our country's economic health and security resilient.

Members are also encouraged to inspire their employees to prepare their own homes and families, which includes having a plan to care for sick family members and storing a two-week supply of food and medical supplies.

10. Tips for keeping healthy

  Stay home if you are sick with influenza-like illness until at least 24 hours after they are free of fever (100° F [37.8° C] or greater) or signs of a fever without the use of fever-reducing medications. This would require employees to stay home for 3 to 5 days in most cases.

  Wash your hands frequently with soap and water for 20 seconds or use an alcohol-based hand sanitizer if soap and water are not available.

  Avoid touching your nose, mouth and eyes.

  Cover your coughs and sneezes with a tissue, or cough and sneeze into your upper sleeve. Dispose of tissues in no-touch trash receptacles.

  Wash your hands or use an alcohol-based hand sanitizer after coughing, sneezing, or blowing your nose.

  Keep frequently touched common surfaces clean. For example, telephones, computer equipment, etc.

  Try not to use other workers' phones, desks, offices, or other work tools and equipment. If necessary, consider cleaning them first with a disinfectant.

  Keep doors and windows open.

  Avoid using fans. Air-conditioning however an be utilise.

  Avoid overcrowding in shops.

Symptoms

In adults, emergency warning signs that need urgent medical attention include:

Difficulty breathing or shortness of breath

Pain or pressure in the chest or abdomen

Sudden dizziness

Confusion

Severe or persistent vomiting

Flu-like symptoms improve but then return with fever and worse cough

In children, emergency warning signs that need urgent medical attention include:

Fast breathing or trouble breathing

Bluish or gray skin color

Not drinking enough fluids

Severe or persistent vomiting

Not waking up or not interacting

GRTU Director General, Vince Farrugia, has addressed enterprises, civil society and the general public at a conference entitled Awareness Raising on Standardisation. The half day conference was organised as a SMEST event and proved highly successful.

Vince Farrugia through a detailed presentation of the positive and negative aspects of standardisation for SMEs outlined why the GRTU Malta Chamber of SMEs supports standardisation for SMEs. It is a proven fact that standards give a direct contribution to the economy, in Germany standards contributed 1% to the growth and in Britain the contributed 13% to the productivity of workers.

 

He explained that there are various benefits to standardisation for the various stakeholders. They contribute to the simplification of the growing variety of products and procedures in human life; to  variety control and the efficient use of materials, energy and human resources; compatibility and inter-changeability; safety, health, protection of life and the environment; reduction of the degree of market uncertainty; protection of consumers and community interests;  fitness for purpose and elimination of trade barriers.

To the GRTU there is no question on the benefits of standards for SMEs. For our members standards mean   less product/process variation; reduced risk in exports and in supply to large customers; legal protection; less rejects and increased efficiency. Good use of standards reduces cost of operation. SMEs, which use standards are more profitable, gain closer contact with large-scale enterprises, export more, are more easily be convinced to use quality management systems, are ready for the next phase (environment, aspects of adhesion, development of the e-Business). Unfortunately micro-Enterprises tend to ignore standards unless competition, clients or authorities force the issue.

It is also true however that to be beneficial standards must be adequate for SMEs. Standards should be adapted to the SME structure to be used effectively. Standards can also be very costly for Small Enterprises if for example they are designed for the large enterprise only; are too complicated (costly) to use effectively in SME, are not understood but used as a basis for contracts or exports; are ignored by the SME, in case that a faulty product leads to a legal dispute.

Within this background GRTU's Director General argued that much can and need be done to improve SMEs access to standardisation.

Write standards thinking small first

Have a balanced representation in Technical Committees

Create an SME helpdesk

  Write explicit scopes

Develop training materials for SMEs and standard developers

Write simplified instruction for SMEs, e.g. checklists

Provide solutions for non and small series production

Organise wide proactive information campaigns on new standards

He further explained that our position on standardisation is further reinforced through our activities at EU level through EuroCommerce, the Association of Retail, wholesale and International Trade Interests, UEAPME, the European Association of Craft, Small and Medium Sized Enterprises, and more particularly by NORMAPME. NORMAPME is found within UEAPME and it concentrates on the standardisation aspects with CEN, CENELEC, ETSI and ISO.

Locally GRTU is active through our seat on the Malta Standards Authority, and our presentations in conferences and seminars as the national organisation representing crafts and concentrating primarily on owner managed enterprises.