Issue link: https://maltatoday.uberflip.com/i/899902
maltatoday SUNDAY 12 NOVEMBER 2017 4 News MATTHEW VELLA THE man who could end up being Germany's next finance minister has pledged "unilateral action" against tax havens in Eu- rope… Malta included. As the Paradise Papers – a cache of data leaked from Bermuda firm Appleby to the newspaper Suddeutsche Zeitung – shines a light on global tax avoidance, once again Malta is thrust into the spotlight of international tax loopholes. But Wolfgang Kubicki hails from the business-friendly Free Democrats, and yet he has told Der Spiegel that, short of EU ac- tion, Germany should take uni- lateral action to stop the flight of tax revenues. "Much of the blame for the sit- uation lies with the states them- selves. They haven't been able to pass decent laws. For decades, tax authorities have been taking aim at the phenomenon of tax havens, and the most aggravat- ing thing is that they aren't just in Bermuda or on the Cayman Islands, but right outside our front door," he said – referring to Malta, the Netherlands, Ireland, Luxembourg and others. "We have to take a close look Operational Programme I – European Structural and Investment Funds 2014-2020 "Fostering a competitive and sustainable economy to meet our challenges" Call for Employment part-financed by the European Regional Development Fund Co-financing rate: 80% European Union; 20% National Funds DĂŶĂŐĞƌ;WƌŽũĞĐƚƐͿ dŚĞWĞƌŵĂŶĞŶƚ^ĞĐƌĞƚĂƌLJ;^ƚƌĂƚĞŐLJΘ/ŵƉůĞŵĞŶƚĂƚŝŽŶͿŝŶǀŝƚĞƐĂƉƉůŝĐĂƚŝŽŶƐĨŽƌƚŚĞƉŽƐŝƚŝŽŶ ŽĨDĂŶĂŐĞƌ;WƌŽũĞĐƚƐͿŽŶĂƵƌŽƉĞĂŶZĞŐŝŽŶĂůĞǀĞůŽƉŵĞŶƚ&ƵŶĚWƌŽŐƌĂŵŵĞ;Z&Ϳ ϬϮ͘Ϭϯϱ—ŽŶŶĞĐƚĞĚĞ'ŽǀĞƌŶŵĞŶƚ;KEǀƌ'Ϳ͘ &ƵƌƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝŶĐůƵĚŝŶŐĚĞƚĂŝůƐĂƚƚĂĐŚĞĚƚŽƚŚŝƐƉŽƐŝƚŝŽŶ͕ĐĂŶďĞŽďƚĂŝŶĞĚĨƌŽŵƚŚĞ KWDǁĞďƐŝƚĞ͗ǁǁǁ͘ŽƉŵ͘ŐŽǀ͘ŵƚ /ŶƚĞƌĞƐƚĞĚĐĂŶĚŝĚĂƚĞƐĂƌĞŝŶǀŝƚĞĚƚŽƐƵďŵŝƚĂůĞƚƚĞƌŽĨĂƉƉůŝĐĂƚŝŽŶ͕ĂĚĞƚĂŝůĞĚs͕ĂŶĚĐŽƉŝĞƐ ŽĨƚŚĞŝƌĐĞƌƚŝĨŝĐĂƚĞƐƚŽƚŚĞ,ZƌĂŶĐŚĂƚƚŚĞKĨĨŝĐĞŽĨƚŚĞWƌŝŵĞDŝŶŝƐƚĞƌǀŝĂĞŵĂŝůŽŶ͗ ŚƵŵĂŶͲƌĞƐŽƵƌĐĞƐ͘ŽƉŵΛŐŽǀ͘ŵƚŽƌďLJƉŽƐƚƚŽƚŚĞĂĚĚƌĞƐƐďĞůŽǁ͕ďLJŶŽƚůĂƚĞƌƚŚĂŶ&ƌŝĚĂLJ ϭϳ ƚŚ EŽǀĞŵďĞƌϮϬϭϳĂƚŶŽŽŶ;ĞŶƚƌĂůƵƌŽƉĞĂŶdŝŵĞͿ͘ >ĂƚĞĂƉƉůŝĐĂƚŝŽŶƐǁŝůůŶŽƚďĞĂĐĐĞƉƚĞĚ͘^ŽůŝĐŝƚŝŶŐǁŝůůĂƵƚŽŵĂƚŝĐĂůůLJĚŝƐƋƵĂůŝĨLJĂŶLJĂƉƉůŝĐĂŶƚƐ͘ ĚĚƌĞƐƐ͗,ZƌĂŶĐŚ͕KĨĨŝĐĞŽĨƚŚĞWƌŝŵĞDŝŶŝƐƚĞƌ͕ ƵďĞƌŐĞĚĞĂƐƚŝůůĞ͕^ƚWĂƵůƐ^ƚƌĞĞƚ͕sĂůůĞƚƚĂ͕DĂůƚĂ d͗ϮϮϬϬϭϬϭϳͬϮϮϬϬϭϬϭϬͮ͗ŚƵŵĂŶͲƌĞƐŽƵƌĐĞƐ͘ŽƉŵΛŐŽǀ͘ŵƚ 'Germany should take action on Europe's tax PARADISE PAPERS Wolfgang Kubicki could be Germany's next finance minister: he says the country should make EU tax havens less attractive for German firms MASSIMO COSTA THE European Parliament will be calling on Police Commissioner Lawrence Cutajar to open an in- vestigation on the revelations in the Panama Papers and on the Politi- cally Exposed Persons in the leaked Financial Intelligence Analysis Unit reports. In a move prompted by the as- sassination of journalist Daphne Caruana Galizia, the EP's political groups, bar the Socialists & Demo- crats, have brought forward a mo- tion for a resolution on the rule of law in Malta which condemns the fact that several serious allegations of corruption and breach of anti- money laundering and banking su- pervision obligations have not been investigated by the police. On Tuesday, the MEPs will ask the European Commission to start discussions with the Maltese gov- ernment on the functioning of the rule of law in Malta and to ensure that European values are upheld. Noting the EP's concern on citi- zenship by investment schemes, they want Malta to clearly identify those persons who have obtained a Maltese passport through the Indi- vidual Investor Programme. The resolution notes with regret developments in recent years in Malta "have caused serious concern about the rule of law, democracy and fundamental rights, including media freedom and the independ- ence of the police and judiciary." MEPs will call on the Maltese su- pervisory and judiciary authorities to investigate the process by which the Pilatus Bank was granted a li- cence, and to investigate audit firm Nexia BT's compliance with the EU's Anti-Money Laundering Di- rective (AMLD). The resolution also recalls that media outlets in Malta had report- ed coming under severe pressure from the bank to retract or remove stories concerning corruption and money-laundering allegations against it, and noted that a whistle- blower at the centre of the allega- tions involving PEPs had fled the country. The EP will also call for a 'Europe- an Daphne Caruana Galizia' annual prize for investigative journalism to be established, together with a de- mand that the Maltese authorities ensure the protection of journalists' and whistleblowers' personal safety and livelihoods. Acknowledging that Malta had invited the United States' Federal Bureau of Investiga- tion and Dutch forensic specialists to assist in the magisterial inquiry into Daphne Caruana Galizia's murder, it also called for an inde- pendent international investiga- tion, and for the involvement of Europol throughout the investiga- tions. The EP asked the Commission to verify whether Malta is compliant with the 3rd AMLD and the Capi- tal Requirement Directive, noting that the number of convictions re- lated to money laundering in Malta seemed 'extremely low' in compari- son to the number of reports the FIAU had sent to the police. The Socialists and Democrats group will also bring forward their own motion on the rule of law in Malta, which, while noting that there was genuine concern about the Caruana Galizia, and that her murder was a threat to freedom of expression, emphasised that Mal- ta's institutions were trusted by the majority. MEPs to call on police to investigate Panama and FIAU leaks Labour's socialist group will not support resolution for publication of IIP citizen list and investigation of Pilatus Bank licence grant