Malta Reaffirms OECD Standards On Tax Regulations

by Lorys Charalambous, Tax-news.com, Cyprus

18 May 2001

A meeting took place this week in Malta between officials from the OECD, the Maltese government and the Malta Financial Services Centre (MFSC) to discuss the island's advance commitment to the multilateral organisation to eliminate harmful tax practices. As a result of Malta's commitment, the OECD excluded the island from its harmful tax competition blacklist.

In an address to the OECD delegation, Chairman of the MFSC, Joe Bannister, assured his audience that the legislation proposed by the MFSC governing international trading companies was compliant with the requirements set out by the OECD.

Dónal Godfrey, an official from the OECD, pointed out that the report on harmful tax havens was misinterpreted and did not focus on tax harmonisation or minimum tax rates. He told the meeting: 'The report is not about dictating tax rates. What the OECD does in this regard is to seek sufficient transparency for tax audits. The OECD also promotes the efficient exchange of information on taxation paid by firms in member countries.'

He added: 'The OECD is currently focusing on enhancing the channels for greater exchange of information. The global economy needs global rules and this applies to taxation as well.'

A further meeting is due to take place in Malta between July 9-13 when the OECD global forum working group on effective exchange of information will be discussing the development of a model multilateral/bilateral legal instrument for effective exchange of information.

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