Taxing issues

It is that time of the year. The local tax office announces that they are going to try and crackdown on undeclared revenue from so-called illegal holiday lets. I congratulate their efforts and yes all those people who are renting out their properties over the summer months should pay tax on their earnings. The tax office say that they are looking at internet sites where holiday homes to rent on the island are registered. But I still believe that the issue of holiday lets should be regulated once and for all. The Balearic government needs to introduce clear legislation which will allow homeowners to rent out their properties within the law and pay the necessary taxes. It is as simple as that. It seems rather remarkable that the tax office can even think about a crackdown when no one is too sure about the rules and regulations. The problem of so-called illegal holiday lets will get even more pronounced once the tourist tax is introduced later this summer. People staying at “illegal” holiday homes will not pay the tax because the house or apartment is not officially listed and as such it is “illegal”. If the government wants the tourist tax to be a success then no one should be able to escape through a loophole such as unregistered rental property. It is time that the local authorities finally took decisive action. I am sure that the majority of holiday homeowners would be more than prepared to pay tax on their earnings if the law was simple and easy.