Malta

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The Cooperation Regulations, which came into force in July 2011, establish comprehensive requirements on the availability of ownership and identity information and penalties for noncompliance. However, the supervisory and enforcement powers to support these legal requirements are untested in practice.  Malta should continue its efforts to ensure that its supervisory and enforcement powers are sufficiently exercised in practice to support the legal requirements established by the Cooperation Regulations, which ensure the availability of ownership and identity information in all cases. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The Cooperation Regulations, which came into force in July 2011, establish comprehensive requirements on the availability of accounting information and penalties for non-compliance. However, the supervisory and enforcement powers to support these legal requirements are untested in practice.  Malta should continue its efforts to ensure that its supervisory and enforcement powers are sufficiently exercised in practice to support the legal requirements established by the Cooperation Regulations, which ensure the availability of accounting information in all cases. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Malta should continue to develop its EOI network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Compliant.  Malta’s competent authority was in some instances unable to respond to international exchange of information requests in a timely manner during the earlier part of the period under review, but the situation greatly improved during 2011 and 2012 with the introduction of internal administrative guidance to streamline the process and reduce internal delays.  Malta should monitor the implementation of the internal administrative guidance recently introduced to ensure that answers to EOI requests are made in a timely manner in all cases. 
During the three years under review, Malta did not always provide an update or status report to its EOI partners within 90 days when it was unable to provide a substantive response within that time. The monitoring of requests has nonetheless improved more recently, with the introduction of a new monitoring system via the EOI database.  Malta should monitor the new system put in place to provide status updates to EOI partners within 90 days to ensure that it operates effectively. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.