Maltese Investment Amnesty Attracting Bigger Fish

by Robert Lee, Tax-News.com, London

10 October 2003

According to a report in the Times of Malta, financial operators have reported that the second investment amnesty which commenced on September 1 is attracting fewer in terms of numbers, though the value of declared assets is higher.

The Maltese authorities decided to launch the programme, which runs until November 15, following the success of an earlier amnesty in 2001 which prompted 11,000 applications and uncovered some Lm291 million in unregistered offshore assets of which around Lm55 million was repatriated back to the jurisdiction.

Under the terms of the programme, those who have invested overseas without the obligatory permits as laid down in the Exchange Control Act, including investors who have not paid the appropriate taxes under the Income Tax Act, will have the opportunity to bring their financial and tax affairs in order without facing a penalty when they register any assets with a designated agent. By doing this, the investor will expunge his tax liability from the assets in question though a registration fee equalling 5% of their market value will be levied.

One financial consultant told the Times that whereas the first amnesty attracted many smaller investors, the current scheme seems to encouraging larger and more sophisticated investors to come forward. "It is more technical now, with people wishing to register funds invested in trusts or on behalf of their children", he observed.

The consultant was also of the opinion that those who held back from applying in the first amnesty were now more willing to register their assets in view of the European Savings Tax Directive and the exchange of information on savings income this will bring, the Times reported.

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