Tax authorities ask Germany for data of Maltese with offshore Dubai accounts

[Martin Everson]

Tax authorities ask Germany for data of Maltese with offshore Dubai accounts

Malta is on the hunt for international tax dodgers

timesofmalta.com

Good luck to those in other countries with assets hidden in Dubai...lol. Other countries will have requested data access also. A weak and globally economically insignificant Dubai will soon be accepting requests to freeze assets with no choice .

----- quote start

Malta has requested access to a new cache of data on offshore holdings in Dubai in a bid to crack down on large-scale tax evasion and financial crime.

The request, for data on any Maltese passport holders, was sent to the German government by Maltese tax officials this week after Berlin last month purchased data on millions of international taxpayers from an anonymous source in Dubai.

Two high-level Maltese government sources told Times of Malta that the move was aimed at uncovering potential Maltese tax dodgers who hide their wealth overseas, with a particular focus on high-net-worth individuals.

Maltese authorities have received intelligence of potentially irregular holdings by Maltese nationals in the Gulf emirate in recent years.

Tax evasion, and lax enforcement thereof, was singled out as one of the main reasons why Malta was last month placed on the so-called grey list of untrustworthy financial jurisdictions.

Global watchdog, the Financial Action Task Force ‘greylisted’ Malta and the government has since signed a commitment to improve the effectiveness of its fight against major financial crime.

Dubai has been at the centre of the political crisis in Malta that led to the collapse of the Joseph Muscat labour administration in 2019.

It was uncovered how former minister Konrad Mizzi and former chief of staff Keith Schembri had both tried to open bank accounts for their Panama companies exposed in the Panama Papers leak.

Yorgen Fenech, who stands accused of complicity in the murder of journalist Daphne Caruana Galizia, also held a Dubai account for his offshore company 17 Black, which is the subject of an ongoing investigation into suspected corruption and money laundering.

The matter was raised in parliament earlier this month when Nationalist MP Jason Azzopardi filed a parliamentary question to Prime Minister Robert Abela asking whether Malta would try and get its hands on the data.

Given parliament’s summer recess, Abela has until October to submit a reply.

A spokesman for Finance Minister Clyde Caruana said the government does not approve such requests since the tax authorities’ operations are independent.

“In fact, he is not even informed about such requests if and when they are taken,” the spokesman said.

The German purchase​

In June, Germany purchased data from an anonymous source in Dubai on millions of international taxpayers.

The data provides information on people who own land, property and other assets in the Gulf, including several thousand Germans, the German finance ministry said in a statement announcing the move last month.

The aim of the purchase of the so-called ‘Dubai list’ was to identify tax offences such as undeclared income, assets that have been hidden from the authorities and illegal cross-border transactions, it said.

The German Federal Central Tax Office (BZSt) paid around €2 million for the data, according to Der Spiegel magazine.

“With this new data, we are illuminating the dark corners in which tax offenders have been hiding until now,” said Finance Minister Olaf Scholz.

“Now it is the turn of the tax investigators to track down the offenders and bring them to justice. In this way, we will ensure that everyone makes their fair contribution,” he said.

The data has already been handed over to Germany’s federal states for examination so they can decide whether to initiate criminal proceedings.

Several German states have over the past decade bought CDs or USB memory sticks allegedly containing data on German taxpayers who had parked their fortunes in Swiss banks.

Fearing prosecution, many of Germany’s rich and famous subsequently came forward to declare their hidden wealth, boosting the tax coffers of Europe’s biggest economy by billions of euros.

But Switzerland reacted angrily, saying the data was stolen in violation of its banking secrecy laws.

----- quote end

 

[Gediminas]

Good luck to those in other countries with assets hidden in Dubai...lol

THIS

 

[joffreylol]

Is it only me who finds it hypocritical that these democratic governments can just buy and/or steal that data and use it for prosecution in their courts?

 

[Martin Everson]

Is it only me who finds it hypocritical that these democratic governments can just buy and/or steal that data and use it for prosecution in their courts?

Sadly your not alone.

Just be grateful they are announcing it to those who are evading tax. It gives them time to come forward and regularize their tax affairs before they get raided at 3am in the morning by taxman in front of neighbors. Then dragged out while still wearing their boxers .

 

[Sols]

In addition to exchange of information (FATCA, CRS, TIEA, EUSD, you name it), this is one of the most difficult aspects of offshore structures to plan for. Authorities are happy to spend millions on data if they know it's good and if they are reasonably sure they can get a return on their investment.

Residence is the key nowadays. If you want the tax benefits of Dubai, you better be happy living in Dubai — or find another tax haven to call home.

 

[ernestdezoe]

I'll never understand people on this forum rooting for negative news

If anything the fact that Germany decided to spend 2 millions for a Disc with the above informations signifies that the CRS is leaky .

Matter of fact even if you intentionally shoot yourself in the foot and declare to be a passive NFE or the bank identifies you as passive NFE then the entity gets reported but then Germany tax authority should initiate a procedure of discovery with UAE/Caribbean/Pacific islands to get to the UBO name.

UBO registry will change the game but I predict the registry to be public but under payment of a fee exclusively by credit card.

50 dollars per document or more and only the US gives its federal employees a card, at least that I know of...other countries are still pre paying via bank wire from the public department of reference. This goes for hotels, trains etc.

 

[carz]

There's a lot of political pressure to prosecute people in Malta to get off the greylist, from both sides of the house.
Added to this you have PEPs and businessmen close to the current government who are/were suspected of having a lot of connections/assets in dubai. The opposition will not rest until these people are investigated.

Sucks for passport holders who actually live/work and have assets there, unlucky.

 

[JustAnotherNomad]

This reminds me of the way Germany was using an intelligence-sharing agreement with its partner countries to spy on its own citizens, since that would have been illegal.
It's a smart move. Other countries can let Germany do the dirty work, then they just ask for information to be shared. No need to even change their own laws to legalize the purchase of "leaked" documents.

 

[JackAlabama]

This reminds me of the way Germany was using an intelligence-sharing agreement with its partner countries to spy on its own citizens, since that would have been illegal.
It's a smart move. Other countries can let Germany do the dirty work, then they just ask for information to be shared. No need to even change their own laws to legalize the purchase of "leaked" documents.

"But Switzerland reacted angrily, saying the data was stolen in violation of its banking secrecy laws. "

That is still valid today.
Acting on and selling/buying data which is knowingly stolen / illegally obtained is not allowed by law.

But well, shows the current state of the major milk cow in EUDSSR.

 

[Fred]

If anything the fact that Germany decided to spend 2 millions for a Disc with the above informations signifies that the CRS is leaky .

Indeed.

Germany needs to commit a crime to get any information - this as one of the most developed EU countries with aggressive tax authorities - shows only how strong the things in Dubai are.

I wouldn't wonder when they purchased from a Real Estate Company - considering indians and pakistani are working in the bank and how brainless and ignorant they are most of the time - it's too high for them closing a 2m$ deal with the German GoV

 

[Martin Everson]

Well the technique of buying data is very effective. It drills insecurity into the minds of those who trust advisors or the architects of such tax evading schemes. It makes it less likely people will try an commit tax fraud. Sorry but I feel no sympathy for idiots who refuse to move to save taxes but instead want to sit in high tax countries and evade. I have said for some years that people also with fake Dubai residencies will be in for a shock.....thats all I can say hint hint.

P.S There has been endless leaks across the Caribbean into Russia, UK and and beyond. All the data is actually fully available online to view . I am in Bahamas and the entire company registry was leaked a while back .

 

[Fred]

Well the technique of buying data is very effective. It drills insecurity into the minds of those who trust advisors or the architects of such tax evading schemes. It makes it less likely people will try an commit tax fraud. Sorry but I feel no sympathy for idiots who refuse to move to save taxes but instead want to sit in high tax countries and evade. I have said for some years that people also with fake Dubai residencies will be in for a shock.....thats all I can say hint hint.

P.S There has been endless leaks across the Caribbean into Russia, UK and and beyond. All the data is actually fully available online to view . I am in Bahamas and the entire company registry was leaked a while back .

I get your point but it draws down a wrong picture for the people looking into Dubai.

I would say I have a good insight in practice and know exactly the numbers.

What is assumed here that the majority of people setting up business in Dubai are keep living in there houme country / country of citizenship - is simply wrong.

The majority of people I meet everyday either in person or via Zoom are not new to the Offshore World at all and want either get rid off some Caribbean Company with shady EMI banking or got already burned either from other service provider here on the forum or jurisdictions - just recently served several clients that got burned in Georgia or Panama with setting up everything and even invested in property just to figure out that the structure doesn't work any longer due to a law change over night.

So the general assumption that Duabi Setup is only considered by people that keep living in there home country is simply wrong - the truth is that the majority of setting up something in Dubai already lost money to unreliable Setups in the past - and beside of this you have the minority of the people keep living in there home countries like claimed here but even then get away with it due to the strong privacy in Dubai on corporate as well as on banking level.

Not to talk about all the people with several passports, travelling around a lot - living a nomad life and so on. @martin for what does somebody needs to have an address utility bill? Right when it comes to banking. In Dubai all this can still be very good managed and you know this - so why ruining the opportunity for people want to live a nomad life or travelling around a lot without really spending somewhere enough time to be considered a tax residence? Especially nowadays and within the last 6 month due to Crypto a lot people are ended up in this position.

What is mentioned here is just one dimensional assuming a guy from a high tax country with villa, house and a ton of other substance is setting up in Dubai and keep living in his home country.

It's exactly the same with the Tax Residence Certificate - because of the agenda going on around here about the mystic Tax Residence Certificate - Brits with UK passport living outside the UK for 10+ years going paranoid about getting Tax Residence Certificate despite the fact they don't have any plans to ever again relocate back to the UK.

You ruin the opportunity for people that are new to the Offshore World by going directly with the Dubai Setup instead of getting first minimum one time burned by some trash setup for 1000 bucks shell company with Lithuania Laundromat EMI banking.

It's even part of my own story - first got burned on Malta with Satabank - lost 6 figures - then considered Dubai after a quick pit stop of burning some money on Cyprus.

My mission is to safe other people the headache and loss I had back in the days but I see the Offshore World keeps being ignorant and because of this people same like me 5 years back on Malta keeps burning money on trash setups even in 2021.

 

[Martin Everson]

I have no problem at all with people who genuinely relocate to Dubai. Problem is with fake residency and there are people with residency visa visiting Dubai a few days a year yet claim they are living there and are giving Dubai a bad name. This is the fault of Dubai. It is very simple for them to keep track of how much time people actually spend in Dubai and to start revoking those sham visas. If they don't get on top of this situation then bad PR is coming their way or worse. If you think Malta has it bad now from selling passports to criminals and giving banking licenses to criminal organizations on more than one occasion then prepare for the worse.

This sort of PR for Dubai below does not help either.

Tara Hanlon jailed for over £5m money laundering offences

Tara Hanlon was found to have five suitcases stuffed with cash at Heathrow Airport in October 2020.

www.bbc.co.uk

P.S I know London is the wash capital of the world by a big margin but Dubai has no fighting back power, economically or politically. It is a nothing country on the global stage so should clean its act up quickly.

 

[ernestdezoe]

I have no problem at all with people who genuinely relocate to Dubai. Problem is with fake residency and there are people with residency visa visiting Dubai a few days a year yet claim they are living there and are giving Dubai a bad name. This is the fault of Dubai. It is very simple for them to keep track of how much time people actually spend in Dubai and to start revoking those sham visas. If they don't get on top of this situation then bad PR is coming their way or worse. If you think Malta has it bad now from selling passports to criminals and giving banking licenses to criminal organizations on more than one occasion then prepare for the worse.

This sort of PR for Dubai below does not help either.

Tara Hanlon jailed for over £5m money laundering offences

Tara Hanlon was found to have five suitcases stuffed with cash at Heathrow Airport in October 2020.

www.bbc.co.uk

P.S I know London is the wash capital of the world by a big margin but Dubai has no fighting back power, economically or politically. It is a nothing country on the global stage so should clean its act up quickly.

Do you ever comment on a positive development? Just asking.

 

[Martin Everson]

Do you ever comment on a positive development? Just asking.

Sometimes

 

[Topdev]

I get your point but it draws down a wrong picture for the people looking into Dubai.

I would say I have a good insight in practice and know exactly the numbers.

What is assumed here that the majority of people setting up business in Dubai are keep living in there houme country / country of citizenship - is simply wrong.

The majority of people I meet everyday either in person or via Zoom are not new to the Offshore World at all and want either get rid off some Caribbean Company with shady EMI banking or got already burned either from other service provider here on the forum or jurisdictions - just recently served several clients that got burned in Georgia or Panama with setting up everything and even invested in property just to figure out that the structure doesn't work any longer due to a law change over night.

So the general assumption that Duabi Setup is only considered by people that keep living in there home country is simply wrong - the truth is that the majority of setting up something in Dubai already lost money to unreliable Setups in the past - and beside of this you have the minority of the people keep living in there home countries like claimed here but even then get away with it due to the strong privacy in Dubai on corporate as well as on banking level.

Not to talk about all the people with several passports, travelling around a lot - living a nomad life and so on. @martin for what does somebody needs to have an address utility bill? Right when it comes to banking. In Dubai all this can still be very good managed and you know this - so why ruining the opportunity for people want to live a nomad life or travelling around a lot without really spending somewhere enough time to be considered a tax residence? Especially nowadays and within the last 6 month due to Crypto a lot people are ended up in this position.

What is mentioned here is just one dimensional assuming a guy from a high tax country with villa, house and a ton of other substance is setting up in Dubai and keep living in his home country.

It's exactly the same with the Tax Residence Certificate - because of the agenda going on around here about the mystic Tax Residence Certificate - Brits with UK passport living outside the UK for 10+ years going paranoid about getting Tax Residence Certificate despite the fact they don't have any plans to ever again relocate back to the UK.

You ruin the opportunity for people that are new to the Offshore World by going directly with the Dubai Setup instead of getting first minimum one time burned by some trash setup for 1000 bucks shell company with Lithuania Laundromat EMI banking.

It's even part of my own story - first got burned on Malta with Satabank - lost 6 figures - then considered Dubai after a quick pit stop of burning some money on Cyprus.

My mission is to safe other people the headache and loss I had back in the days but I see the Offshore World keeps being ignorant and because of this people same like me 5 years back on Malta keeps burning money on trash setups even in 2021.

I am sorry for you loss with SATA bank. this was a big story here in malta and i heard of many foreign nationals living here that they went to satabank because it was the only bank willing to open accounts for them as BOV would not accept them.

 

[Fred]

I am sorry for you loss with SATA bank. this was a big story here in malta and i heard of many foreign nationals living here that they went to satabank because it was the only bank willing to open accounts for them as BOV would not accept them.

Yes - lesson learned.

Afterwards it was my own fault as Malta was already 4 years ago a dead cow when it comes to banking and since then it's going down the drain each year.

I try to safe up the newbies like I was back in the forum such learning and losses but it seams that sometimes something like this is necessary to get the eyes opened.

 

[Vor]

The problem with all of these offshore havens is if one truly works like Dubai currently does it's only a matter of time before it doesn't. The tax authorities know exactly where to look and where everyone is hiding. The fact many move to Dubai and legally utilize the residence wont matter when a journalist gets a hold of the list of a few thousand who didn't actually relocate. Tax officials know what's up with Dubai just like everyone on this forum does. Some Tax authorities probably even have people reading this very forum.

 

[Fred]

The problem with all of these offshore havens is if one truly works like Dubai currently does it's only a matter of time before it doesn't. The tax authorities know exactly where to look and where everyone is hiding. The fact many move to Dubai and legally utilize the residence wont matter when a journalist gets a hold of the list of a few thousand who didn't actually relocate. Tax officials know what's up with Dubai just like everyone on this forum does. Some Tax authorities probably even have people reading this very forum.

Dubai is doing very well and can't be compared with some small islands like Malta and Cyprus.

While Malta gets grey listed by the FATF and Cyprus gets busted for giving criminals new identities via there Citizenship by Investment Program. Malta and Cyprus keeps hosting shady Forex broker and Online Casinos.

In the meantime UAE and especially Dubai is developing further with having year by year more substance - having excellent marketing a la biggest building in the world aka Burj Khalifa, best airline in the world and along with this a real tourism industry and a startup scene that is hosting more and more NYSE public listed companies - not to forget they host in about a month the WORLD EXPO for 6 months and beside of that they having about 52.000 Millionaires.

Dubai is the Monaco of the Middle East with some real presence being the bridge between Asia and Europe when it comes to the Airport and the Harbour.

What about Malta, Cyprus or the whole Caribbean?

Things keep changing like they ever did - ride the wave till the very end and with Dubai you can ride the biggest wave.

 

[Vor]

Dubai is doing very well and can't be compared with some small islands like Malta and Cyprus.

While Malta gets grey listed by the FATF and Cyprus gets busted for giving criminals new identities via there Citizenship by Investment Program. Malta and Cyprus keeps hosting shady Forex broker and Online Casinos.

In the meantime UAE and especially Dubai is developing further with having year by year more substance - having excellent marketing a la biggest building in the world aka Burj Khalifa, best airline in the world and along with this a real tourism industry and a startup scene that is hosting more and more NYSE public listed companies - not to forget they host in about a month the WORLD EXPO for 6 months and beside of that they having about 52.000 Millionaires.

Dubai is the Monaco of the Middle East with some real presence being the bridge between Asia and Europe when it comes to the Airport and the Harbour.

What about Malta, Cyprus or the whole Caribbean?

Things keep changing like they ever did - ride the wave till the very end and with Dubai you can ride the biggest wave.

I agree Dubai pulls much more clout than any of the island countries without a doubt. I hope actually Dubai continues to improve I'm planning to use your services once my US passport is gone(Unless banks will in fact still take me while im a dreaded US person)