New Balearic tax office to fight fraud

PALMA
THE Balearic Parliament has approved the setting up of a regional tax office, especially designed to combat fraud and evasion of income tax payment.
The Islands' minister for Economy and Tax - Carles Manera - said yesterday in unofficial interviews in the Parliament building that although the key element of the development is to put measures in place to stop tax fraud, “making the Inland Revenue more accessible to people who pay into it” is a strategy whereby payers will become more familiar with their income tax brackets.

Understanding their responsibilities at a local level will also help “demystify” the regulations which are the foundations of the Inland Revenue, said Manera. Paying directly to Madrid, he added, could seem very “remote” to people living in the Balearics.

Simplifying the process of payment will make it easier for citizens to comply with their obligations, asserted the minister.
All political parties supported the creation of a regional tax office, which provisionally is scheduled to start operating in January of 2009. The Unió Mallorquina party and the left-wing coalition known as the Bloc said that they view the move as a further step towards financial autonomy in the Islands.

Manera said that there was a final aspect to the new tax office project. Apart from the fight against tax fraud and bringing the service closer to the taxpayers themselves through upgraded training of Inland Revenue staff, the minister said that revitalising relations and exchange of information with the central government tax authority in Madrid could be achieved through a collaboration agreement.

Opposition (Partido Popular) deputy, Mabel Cabrer has been given the responsibility of pushing through 17 partial amendments to the new tax scheme.
Of this total, only four have been approved by the political groups which support the government whilst the rest have been given the green light by all parties.

Cabrer voiced concern about one aspect of Manera's proposals which could conflict with the Constitutional Statutes of the Balearic Islands and that was the issue of being able to enter into collaboration arrangements with other public administrations through any judicial means. She said the integrity of the statutes may be affected by such arrangements as had been the case in Andalucia and Catalonia where special working “partnerships” had been set up between region and State.