“Justice requires that each and every person pays all tax that is due, and that nobody is allowed to evade tax as this is socially unjust and undermines the country’s revenue,” said the Minister for Finance Prof. Edward Scicluna.

Prof. Scicluna was speaking during the launch of the Asset Registration Programme on Wednesday. During the launch, Prof. Scicluna explained that due to various recent changes in the global financial landscape, such as the EU Savings Directive, Malta’s FATCA with US, and other Tax Information Exchange Agreements with offshore centres, the Maltese Government has greater powers and tools to obtain information on undeclared assets abroad.

“The Government is determined and will make full use of these tools to address tax evasion,” Prof. Scicluna said. Towards this end, he explained, the Government is inviting for voluntary disclosures prior to embarking on a crackdown on individuals and companies who are receiving undeclared income from assets which are not registered, and who are thus evading Income Tax.

“This is in line with the Government’s commitment to fighting tax evasion, as laid out in the Budget 2014,” he said, adding that the Government is also conscious of those individuals who find themselves in possession of undeclared assets through inheritance.”

“Nevertheless, tax evasion through undeclared assets is socially unjust as it deprives the country of much-needed revenue with which to support social services, the education system, and the health care system,” Prof. Scicluna said. “The Asset Registration Programme will provide individuals the opportunity to register undeclared assets, located both locally and abroad.”

Registration of assets will be done against a registration fee of 7.5% of the value of the asset, while a rate of 5% will apply in the case of assets abroad and which are repatriated.

The Asset Registration Programme also follows global trends and others similar schemes created and launched in countries abroad such as France, Italy, the Netherlands, Norway, Singapore, Switzerland, and the United Kingdom, Prof. Scicluna added.

Registration must be done through a registration agent, normally a financial institution or broker, appointed by the Central Bank of Malta, and requires the submission of original documentation confirming that applicant was beneficial owner of the registered assets on the applicable date.

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