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CIR 05/24 | Update on Tender for Property Valuations issued by CFR (2)

In 2022, the Council of the Kamra tal-Periti was alerted to a tender published by the former Commissioner for Revenue (CFR), now renamed Malta Tax & Customs Administration (MTCA), calling for periti to draw up property valuations at a capped rate of €25 excluding VAT.

The Council had immediately issued a directive instructing periti not to submit bids for this tender due to its “unacceptable terms, which undermine the scope of the due diligence and research necessary for the preparation of a valuation report, as well as underestimate the associated liabilities”.

Urgent meetings were held with the Commissioner for Revenue and Director of Property Tax to discuss the way forward. Given that the tender could not be amended following its publication, an agreement was reached such that following its closing date, the CFR would republish the tender with fresh terms in agreement with the Council of the Kamra, including considerably improved financial terms that reflect the dignity and respect we should all expect for our profession.

The above background history was explained in a circular published soon after. A meeting was also held with a number of periti who had already been giving similar services to the CFR for a number of years through an arrangement which the National Audit Office declared to be non-conformant with the public procurement regulations. They were also kept regularly informed of meetings and communications exchanged between the Council and the CFR, and were in agreement with our approach.

 

Regretfully, a number of periti –  indeed the same periti who were being kept continuously informed about the ongoing negotiations – chose to outmanoeuvre the Council to try to gain an advantage over ethical and responsible members of the profession who chose to diligently follow the directive and await the outcome of the negotiations the Council was conducting. This resulted in a wholly unnecessary two-year delay during which members of the profession could have benefitted from the improved terms eventually negotiated, which we are happy to announce below.

 

Indeed, rather than the measly and demeaning sum of €25 excl. VAT per report, as a result of our negotiations successful bidders will be earning €50 excl. VAT per report for all properties having a contract value of less than €1 million, and €150 excl. VAT per report for all properties having a contract value of €1 million or more.

The Council considers this a suitable compromise, considering also that the use of the term “valuation” has been dropped from the tender document in favour of the term “review”. This shift in terminology is felt to more appropriately reflect the actual exercise to be performed by periti who successfully bid for the new tender.

The tender published by the MTCA via the Department of Contracts is linked below:

CfT: CT2136/2024 – Framework Agreement for the Provision of Professional Services of Periti to provide reviews of Properties to the Malta Tax and Customs Administration (MTCA)

 

The Council looks forward to building further on the positive relationship established with the MTCA, and remains committed to representing the interests of the profession at all times to the best of its abilities.

 

Perit André Pizzuto
President

 

 

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CIR 09/22 | Update on Tender for Property Valuations issued by CFR

Further to Directive DIR 08/2022, the Council met with the Commissioner for Revenue, Mr Joseph Caruana, and the Director of Property Tax, Ms Josette Galdes on 12th August 2022. During this meeting the Council outlined its serious misgivings about the tender, particularly relative to the capping of €25 per valuation report and €25 per Court sitting. The Council also pointed out that there is no mention of remuneration for disbursements, such as acquiring planning permits from the PA, and that such remuneration fees would inevitably affect the quality of the valuations being provided.

 

During the meeting the CFR stated that it understood the nature of the Kamra’s objection, and expressed its openness to introducing differential rates, distinguishing between the valuation of garages and hotel resorts, which would have otherwise all been compensated for at the capped rate of €25.

It was agreed that the CFR would consult with the Department of Contracts (DoC) to establish whether the tender as published could be amended. However, the CFR was not willing to withdraw and republish the tender should this not be possible.

 

On 16th August 2022, the CFR informed the Council that the DoC was unable to amend the tender.

 

Given the above, the Council is notifying members of the profession that the only resolution to the matter is allowing the current tender to run its course without any bids, so it may be republished after appropriate consultation is made with the Kamra in accordance with article 4 of Subsidiary Legislation 390.01.

 

Moreover, the Council shall retain Directive DIR 08/2022 in place. Members of the profession are reminded that disciplinary action will be taken against periti who do not abide by the Directive.

 

Perit André Pizzuto
President

 

 

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DIR 08/22 | Tender on Property Valuations issued by CFR

The Council of the Kamra tal-Periti has been notified of a tender issued by the Commissioner for Revenue with reference SPD7/2021/081 named “SERVICES – FRAMEWORK AGREEMENT FOR THE PROVISION OF PROFESSIONAL SERVICES OF PERITI TO PROVIDE VALUATIONS OF PROPERTIES TO THE COMMISSIONER FOR REVENUE (CFR)”.

The tender stipulates that “[v]aluations of properties is capped at a fixed fee of twenty-five Euro (€25.00) excluding VAT”. These are unacceptable terms, which undermine the scope of the due diligence and research necessary for the preparation of a valuation report, as well as underestimate the associated liabilities.

 

In view of the above, the Council is hereby instructing all Periti not to submit bids for this tender.

Failure to abide with this Directive will result in disciplinary action.

 

Perit André Pizzuto
President

 

 

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