Malta signs FATCA to deter offshore tax abuse
Malta has agreed to help the US in identifying Americans who have in stashed money in the country to avoid paying tax.
Maltese finance minister Edward Scicluna has promised to support the US in its investigation by signing the Foreign Account Tax Compliance Act (FATCA) – a provision targeting non-compliance by US taxpayers with foreign accounts.
The act focuses on the reporting of certain financial accounts and offshore assets which have seen their details withheld by their owners.
As reported by mondaq.com, by pledging to improve international tax compliance, both the US and Malta will work together to detect, deter and discourage offshore tax abuse.
Along with fellow FATCA signees the Netherlands, the Islands of Bermuda, Jersey, Guernsey and the Isle of Man – who lexology.com says joined the US earlier this week – the pair hope to establish a more stable and more accountable global financial system.
Professor Scicluna said the announcement will send out a strong message to expats who have failed to comply with tax rules in their own country.
“Furthermore, the citizens of both countries will now realise that it is in their interest to comply with tax laws of their respective country.”
He went on to say that the signal Malta was sending out was that when it comes to tax, it is “deeds not words” which carry the most weight.