Two Major Cab Providers Allegedly Owe Malta €3 Million In Unpaid Vat

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Two of Malta’s largest fleet companies allegedly owe €3 million in unpaid VAT, MaltaToday reported.These companies provide vehicles and personnel to cab-hailing platforms and have been swimming in allegations of tax evasion for several months.According to Malta Today’s sources a tax investigation into the sector revealed that millions have been evaded by two companies – WT Global and TXGO.Suspicion has long been cast on the legitimacy of the economic model of these fleet companies, looking solely at the way they worked, a lot pointed to the exploitation of the law and foreign employees.In fact, in July of last year, the government began its crackdown on the industry by mass refusing hundreds of work permit requests for the cab and food courier industries.This preceded the removal of over 1,000 Y-plate vehicles from the roads for violating new regulations at the start of the year.Around the same time, both WT Global and TXGO had their licenses suspended while cab-hailing apps like Bolt and eCabs were told to remove vehicles operated by offending firms from their platforms. They both appealed this decision and have been allowed to continue operating until the courts conclude their appeals.•