A bar owner has been fined €700 for failing to issue a VAT receipt on a €2 sale in December 2019.

Magistrate Yana Micallef Stafrace heard VAT Department inspectors explain how they watched the accused, Lindsey Jane Nickless, sell a drink at her Marsascala bar and not issue a receipt.

She only did so once they identified themselves and raised the matter. Nickless said she had not issued a receipt because the bar was holding a private event to raise funds for an English friend whose husband had died suddenly and she did not even have enough money for a funeral.

“We held a fundraiser and we said everything that we make that night would go towards the funeral,” she told the court in a previous sitting.

She admitted she did not hold a permit to hold a fundraising event.

The bar owner's husband said there was a sign on the door outside and inside saying that it was a private party to try to raise money for a burial. No VAT was collected because all the proceeds were to go to pay for the burial.

The deceased's wife also gave evidence, confirming she had received money for the burial at sea. 

The court observed that even though the activity was described as a private event between friends, the VAT inspectors entered the establishment freely and witnessed the sale of the drink. Contrary to what was submitted, it was the defence who had to provide evidence that a bar that was open to the general public was in fact closed as a private event.

The accused and her husband in their evidence both confirmed that they did not request a permit to hold the fundraiser.

The law stipulated the criteria for an organisation to be exempt from its fiscal duties. But by her own admission, the accused confirmed that she did not comply with those requirements, the court said.

The court therefore found that the offence has been proven by the prosecution.

The court said it was taking consideration of the events and that the widow confirmed that she had received a donation.