A new investigation into Malta’s taxation regime is about to be launched as MEPs have agreed on a new committee that will deal with tax justice.
The European Parliament in Brussels will investigate for the first time tax privileges for new residents which benefit from citizenship programmes and non-domiciliary regimes in Malta, Portugal, Italy, the United Kingdom and Cyprus.
The EP’s conference of presidents on Thursday adopted the mandate for the new special committee on financial crime, tax fraud and tax avoidance. The committee is expected to take an interest into Malta’s Individual Investor Programme and its tax imputation scheme which can levy an effective tax rate of 5% for foreign companies that book profits in Malta.
This will be the fourth committee of its kind after the TAXE, TAX2, and the PANA committee of inquiry into the Panama Papers that was launched in 2016.
The ‘tax crimes’