MaltaToday previous editions

12 BUSINESS & FINANCE maltatoday, WEDNESDAY, 19 FEBRUARY 2014 'Responsible gaming' authority to lead prevention drive Jurgen Balzan An independent foundation for responsible gambling was today launched by the parliamentary secretary for competitiveness and economic growth Edward Zammit Lewis and the social solidarity min- ister Marie Louise Coleiro Preca. With a flourishing gaming industry, which employs over 7,000 and makes up around 10% of GDP, the foundation will play an important balancing role, Zammit Lewis and Coleiro Preca said. However, the social solidarity minister denied that this foundation is a token gesture, insisting that "it will play an important role as a safeguard as the government is embarking on a national prevention policy." Describing the gaming industry as a "necessary evil," Coleiro Preca said that the government cannot ignore the industry's importance to Malta's economy "and we cannot suddenly change direction." Zammit Lewis also rejected the notion that the foundation was merely a token gesture, stressing that the Lotteries and Gaming Authority (LGA) was in the process of introducing stricter regulations and regularising unregulated sectors such as social gaming. "Our priority is to increase regulation and strengthen enforcement," he said, pointing out that this was the only way to root out the black market. The junior minister added that the Labour administration will allow the industry to "flourish" while creating a balance and focus on promoting responsible gambling. "We're working on a holistic policy which not only regulates the sector but above all clarifies what is permissible and what is not," Zammit Lewis said. He also pointed out that Malta is a leader in the market and the Labour government will ensure that the country retains its leadership by acting swiftly in an ever-changing landscape. "We want to attract new niches, which will in turn create new jobs and bolster the country's tax revenues which we will use to strengthen social policy, education and health services," Zammit Lewis said. Coleiro Preca also announced the creation of a national prevention strategy that will include all stakeholders who work in diverse sectors such as alcohol and drug abuse, usury, obesity and gambling. "This will resolve the problem created by fragmentation of resources and bring in all stakeholders, including state agencies, ministries and civil society," she said. The foundation, which will be funded by contributions by the national lotteries operator Maltco, EU funds and other funds made available by the Lotteries and Gaming Authority (LGA), will be made up of representatives from the education ministry, the social solidarity ministry, LGA, the industry and a chairperson appointed by the Ministry for Economy. Thousands of Americans ditch passports "Goodbye, Uncle Sam!" That's what 3,000 Americans chose to say last year, lining up at embassies around the world to renounce their citizenship. The numbers for 2013 represent a dramatic spike – triple the average for the previous five years, according to a CNNMoney analysis of government data. Some of the rush is coming from expats who are tired of dealing with complicated tax filings – which are only getting worse as new regulations come into effect. Unlike most countries, the US taxes citizens on all income, regardless of where it is earned or where they reside. Reporting taxes can be so difficult that expats are often forced to seek expert help, which can cost thousands of dollars. Brad Westerfield, a tax lawyer at Butler Snow, said that renunciations have increased following the implementation of a new disclosure law – the Foreign Account Tax Compliance Act – that targets overseas tax evasion. The measure, approved by Congress in 2010, is aimed at recouping some of the hundreds of billions the government says it loses each year in unpaid taxes. "They've become so complicated – the increased filing obligations over the years," Westerfield said. "You see more people giving up their citizenship or relinquishing their green cards... Individuals [are] wanting to simplify their financial affairs, and just pay tax and report to one jurisdiction." Westerfield said that the first wave of renunciations in 2010 coincided with a part of the law that requires individuals to report foreign assets worth as little as $50,000. That's in addition to a separate provision that forces Americans to disclose foreign bank holdings larger than $10,000. Renunciations dipped in 2012, but now another part of the law is kicking in. The new provision requires financial institutions to report all foreign accounts held by Americans. "People find that intrusive," Westerfield said. "Just because you live your life outside of the U.S., most of your assets are foreign assets. [Americans are] saying enough is enough." The law has prompted some banks to kick out their American clients rather than comply. Penalties can be high if banks make a mistake reporting U.S.-held accounts, even if they are basic checking and savings accounts. Some Americans may be giving up their passports to protect their wealth. Doing so could raise legal questions – it's illegal to renounce your US status to avoid paying taxes, and giving up citizenship doesn't mean you're off the hook for back taxes. "The US used to be the 'Rolls Royce' of destinations, the land of opportunity," said Hong Kong-based immigration lawyer Eugene Chow. No longer, it seems. "Both naturalised and native-born American citizens are choosing to say goodbye to Uncle Sam today." The US used to be the 'Rolls Royce' of destinations, the land of opportunity – no longer, it seems FinanceMalta investing in the future of Malta's young financial services talent FinanceMalta, the public-private foundation set up to promote Malta's financial services sector, continues to support Malta's international vis- ibility by supporting ELSA Malta (the domestic branch of the Europe- an Law Students' Association) who is hosting ELSA's 65th International Council Meeting (ICM), which will be held in Malta between 16 and 23 March 2014. This initiative is part of the strategy that FinanceMalta is implementing in order to support and encourage students to choose a career in financial services, and set the standard for a robust financial services sector based on Malta's emerging talent. Today, ELSA is the world's largest independent law students' association and is represented at nearly 300 law faculties in 42 countries across Europe with membership in excess of 30,000 students and young lawyers. Under the new sponsorship agreement, FinanceMalta is supporting ELSA Malta both generally as well as specifically to organise ELSA's International Council Meeting, which will bring some 400 law students from all over Europe to Malta. ELSA offers law students a platform to develop their existing skills, acquire new skills and meet fellow students and legal professionals throughout Europe. In each ICM there are seven workshops: one for each supporting and key area. Each workshop is supervised by the relevant International Board member and chaired by an experienced delegate. FinanceMalta will be present for the workshops to be held during the Malta ICM. A conference, open to all ELSA Malta members, shall also be held in that week with the active participation and support of FinanceMalta. Bernice Buttigieg who signed the agreement on behalf of FinanceMalta said, "Many entry-level financial services jobs don't require a degree in business, finance or commerce, but it's a good idea to start thinking about how to obtain additional training and knowledge related to the specific area of finance you're interested in working in, particularly as a law student. A job in financial services is not only dynamic and challenging; it also puts Maltese citizens at the very heart of money management. As one of the most significant contributors to Malta's economic growth, the financial services sector is home to over ten thousand jobs and represents over twelve percent of the country's GDP. We are very pleased to be supporting ELSA Malta as part of our programme to expose the jurisdiction's growth across professional segments. With hundreds of possible career choices within the realms of banking, insurance, investment and wealth management, financial services continues to grow as a sector of the economy and this is an investment in the practitioners of the future." FinanceMalta has also created a jobs page on its website www. financemalta.org to promote current vacancies in the field of financial services. More information on the ELSA International Council Meeting can be found on www.icm-malta.org or by visiting the 'ICM Malta' Page on Facebook Parliamentary Secretary for Competitiveness Edward Zammit Lewis (left) and So- cial Solidarity Minister Marie Louise Coleiro Preca

• Cover