The Malta Independent 4 May 2024, Saturday
View E-Paper

Tax schemes such as Malta’s ‘open the door for large-scale tax avoidance’, says Greens co-chair

Friday, 26 May 2017, 18:34 Last update: about 8 years ago

Ska Keller, the Co-Chair of the Greens-EFA Group in the European Parliament, had harsh words today for Malta’s corporate tax regime, which has been put under fire recently.

During a press conference in Vittoriosa, Keller, said: "Even if the existing Maltese tax system might not be in conflict with European law, it is clearly in breach of European solidarity and fairness. Tax schemes such as those that exist in Malta and several other EU Member States open the door for large-scale tax avoidance. That might not be illegal, but it is clearly immoral.

“Member States have the responsibility to create EU legislation that would put an end to tax avoidance in the EU. The EU can no longer afford to accept national tax schemes that allow wealthy people and companies to dodge taxes in their home countries. We need serious reforms so that Malta and other Member States do not remain accomplices in tax avoidance. It is crucial for social justice in the EU that companies and wealthy individuals pay their fair share to finance good schools, social services, renewable energy and quality jobs.

“There should be no place for money laundering in the EU. If Malta wants to remain a credible partner in the fight against dirty money, it needs to set up an independent and effective inquiry to get to the bottom of the current accusations of money laundering in the country.

“The EU should finally improve its anti-money laundering legislation to close existing loopholes and end this dirty business, no-matter where in Europe it takes place. As the current holders of the presidency in the Council, Malta has a special responsibility to move ahead with this important legislation.”

                                                                                                                  

Konrad Mizzi and Keith Schembri allegations ‘being taken extremely seriously in the EP’

She added, “The involvement of a leading government minister, Konrad Mizzi, and government official like Keith Schembri, allegedly even of the Prime Minister - but there is yet no concrete proof on this- is being taken extremely seriously in the European Parliament. It is primarily in the interest of the Maltese people to get to the bottom of things, but the European Parliament also demands full transparency and accountability for any wrong-doing.”

On the low wages being paid by Playmobil to outsourced workers, which has been reported by this newsroom this week, Alternattiva Demokratika Chairperson Prof Arnold Cassola said, "Foreign companies setting up shop in Malta should also be respectful of workers' rights and ensure that decent and just salaries are paid out. The recent scandalous discovery that Playmobil have been paying its sub-agents in Malta €3.99 an hour, and that these sub-agents in turn pay their workers €2 an hour, over 60% less than the established legal minimum per hour, is tantamount to modern slavery.

“Such abuses have to be eradicated if we are to enforce decent standards and quality of life in all countries of the supposedly progressive European Union.”

  • don't miss