The Finance Ministry has launched a scheme through which people are urged to regularise their position and declare any assets which are unknown to the authorities – before the authorities get an unprecedented opportunity to discover them on their own.

At the launch of the Asset Registration Programme this morning, Finance Minister Edward Scicluna pointed out that international efforts against tax evasion have been intensifying, with the G8 recently agreeing to exchange information of undeclared revenue. The US, he pointed out, has reached many bilateral agreements – including with Malta – promising no hindrance on the exchange on such information.

Prof. Scicluna also recalled that a revised Savings Taxation Directive which has been adopted by the EU Council of Ministers earlier this year – and is thus set to be implemented shortly – empowers each member state’s tax commissioner to request information on citizens’ revenue and assets from any other member state.

The minister added that while countries known for banking secrecy – such as Switzerland and Austria – had resisted such efforts, they have succumbed to pressure. Consequently, he said, people with accounts in Switzerland and various offshore banking centres are being informed, by their own banks, that their country’s tax authorities can now ask and receive information on their assets.

As a result, Prof. Scicluna maintained, the government felt that it was only fair to introduce a scheme enabling people to voluntarily register any assets which are presently unknown to the authorities, pointing out that many other countries are launching similar schemes.

He also noted that a similar scheme was “justifiably” launched ahead of Malta’s adoption of the euro, addressed at those with undeclared reserves of Maltese currency which they risked losing as a result of the changeover.

The Asset Registration Programme targets any form of undeclared overseas assets, including bank accounts, shares and property, and applicants can regularise their position by paying a one-off 7.5% tax on these assets. Should they decide to repatriate assets to Malta, a lower rate of 5% will be charged instead.

“There is no doubt that government will not hesitate to follow the law and impose all relevant penalties on those who do not conform,” the minister warned.