Swiss Leaks: No further tax amnesties envisioned – Prime Minister Joseph Muscat
No more tax amnesties by the government are envisioned, Prime Minister Joseph Muscat said yesterday during a press conference announcing the government’s acquisition of the Swiss Leaks data.
The first tax amnesty was launched in 2002, with subsequent amnesties in 2003, 2005, 2007 and 2014.
Asked whether tax evaders on the Swiss Leaks list will now be granted an amnesty, Dr Muscat sidestepped the question, instead answering that the 2014 amnesty was identical to the ones offered in subsequent years.
Dr Muscat said the Swiss Leaks list was handed to the Maltese tax authorities yesterday in Paris, after a formal request was filed one month ago.
The Prime Minister said that he does not have access to the list. He has requested the Commissioner of Revenue to hand over the names of all those who are “politically exposed” on the Swiss leaks list.
Dr Muscat said that once he has the list, he will take the necessary action and publish it after the necessary safeguards by law have been taken.
He said investigations are under way as to the origins of the funds hidden by former ministers Ninu Zammit and Michael Falzon.
The Malta Independent on Sunday revealed that Mr Zammit hid $3.2 million is a secret Swiss account. Mr Zammit says he repatriated the money under a 2014 government amnesty.
Mr Falzon admitted to having hid €465,000 in a Swiss account. He has since suspended himself from the Nationalist Party and the state fuel procurement committee, on which he was appointed by Dr Muscat.
Dr Muscat said the process for the government to get the list started a month ago when he met French President Francois Hollande. A formal request for the list was then made by the Maltese tax authorities.
He said the list was officially handed over to the Maltese tax authorities today in Paris.
Dr Muscat said the Maltese authorities have known about the list since 2010. Other countries, including the UK, were given a copy but Malta had never requested one.
The Prime Minister said he has instructed the Commissioner of Inland Revenue to investigate the data immediately and to give the documents ‘absolute priority’
The information is governed by the Double Taxation Agreement between Malta and France and the European Savings Tax Directive. These make it clear that the data may not be divulged indiscriminately.
Meanwhile in comments to the media later in the day, Opposition leader Simon Busuttil asked what the prime minister was waiting for to reveal the names who are on the list. “I had no problem in calling for the names to be revealed, even though two individuals were former PN ministers,” he said.
“The PN does not have the list in hand so we cannot reveal the names ourselves,” he said.
“The PM is no longer a One journalist or Opposition leader; he should act like a prime minister,” Dr Busuttil added.
Dr Muscat should not play games and should publish the names immediately and not wait to release information in a staggered manner for political gain.
Dr Busuttil said that he did not meet Ninu Zammit after The Malta Independent revealed that he held €3.2 million in an HSBC Swiss account. He also said that what was revealed by this newspaper places a massive responsibility on the prime minister for having given Mr Zammit amnesty in the first place.
Advisors have also told him that if the information is published the government could face serious legal action.
However, in accordance with other tax laws, he may request the list of politically exposed people, who would have to step down if any wrongdoing was found. Dr Muscat said not all people on the list may have been evading tax as some could have been declaring their funds.
Dr Muscat said that those on the list may not necessarily be evading tax as they may have been declaring the funds.
Dr Muscat said no one within the Labour Party including MPs and party officials have declared involvement in the Swiss Leaks ‘scandal.’
