European Commission forces across EU tax changes to curb Aggressive Tax Planning practices - Malta

[Rzeznik]

https://www.orbitax.com/news/archive.php/European-Commission-Approves-M-47666https://www.ifcreview.com/news/2020...alls-out-6-members-as-enabling-tax-avoidance/
EU is using "covid recovery loans" as tool of changing tax policies across most tax-effective EU countries like Cyprus, Hungary, Ireland, Luxembourg, Malta and the Netherlands.
In case of Malta they have to:
- setup EU black list of tax heavens and tax income from there in short
- they will give away TAX data by default of new people who will be citizen by investment to EU origin country (you won't hide in Malta with citizenship from EU)
- Transfer Pricing
- Study on the relevance of measures relating to inbound and outbound dividend, interest and royalty payments

If you plan something that includes those countries you have to be aware that changes are coming for worse.

Many tax treaties is also changing for worse in case of Malta.
- a way of avoiding double taxation, such that tax is paid in addition to the amount in the other State
- clauses for contesting transactions where the aim was mainly to benefit from taxation

As far as I am concerned, the whole EU is slowly becoming a bureaucratic monster, absorbing gigantic funds for pointless 'eco' programs.
I had hoped that some enclaves would survive in the EU, but the EU is pushing as hard as it can against the friendlier ones.

 

[uplana]

Thank you for letting us know, very interesting read.

 

[Fred]

Get out of the EU as long as you can

 

[Cocopops]

Estonia and Bulgaria remain as acceptable place to be in europe, but for how much time, in my opinion not too much.
It seems occidentals are targeted more and more every year, I don't really know what to think of all this

 

[jakubko666]

Get out of the EU as long as you can

as fast as you can

 

[cangarooo]

Thanks God that UK had Brexit ;-)
If enforced by EU, this law will make the entire system of certain EU countries to collapse.

 

[MiddleEuroAsia]

Thanks God that UK had Brexit ;-)

Heh, it's nice that they got out of this EUSSR , but the exit plan was executed poorly (I'm here being nice about it), and the long term consequences will be terrible, the EU want to make an example out of the UK, to scare off other member states, and I'm certain that they will do that.
will they succeed or will the UK show some resilience? Idk, but the future remains uncertain in the UK.

 

[OJ333]

"Everyone must pay their share. There can be no place for aggressive tax planning in a Europe of solidarity and fairness."
Yep. Solidarity and fairness. Run away fast when you hear these words.

 

[cangarooo]

Heh, it's nice that they got out of this EUSSR , but the exit plan was executed poorly (I'm here being nice about it), and the long term consequences will be terrible, the EU want to make an example out of the UK, to scare off other member states, and I'm certain that they will do that.
will they succeed or will the UK show some resilience? Idk, but the future remains uncertain in the UK.

Love the EUSSR definition.
Agree, EU would like to make an example. The Romans used to say "Unum castigabis, centum emedabis" (in English it may sounds like "Punish One, Teach One Hundred").
EU tends to forget the strong link between US and UK.

"Everyone must pay their share. There can be no place for aggressive tax planning in a Europe of solidarity and fairness."
Yep. Solidarity and fairness. Run away fast when you hear these words.

Terribly true.
What is EU today??? Nothing. A bunch of countries forced to stay together by the Germans and French.
Is it enough for the people to be able to travel and work abroad using the same currency?

UK will go through turbulent times for the next years (5???) but after that it will be stronger than ever, with a solid economy, attracting capitals even more than before.

From a very personal perspective (business related and tax wise), thanks God that UK had Brexit (and I'm not Brits)

 

[FixieHartmann]

It looks like at this point in time we have to assume that all setups in Europe (Cyprus, Malta, Romania, Bulgaria) are at most temporary solutions that likely fall apart in the next years.

 

[OJ333]

It looks like at this point in time we have to assume that all setups in Europe (Cyprus, Malta, Romania, Bulgaria) are at most temporary solutions that likely fall apart in the next years.

Not sure about that. In Bulgaria there is literally no party that dares to talk about raising taxes apart from the socialists that got about 15% of the last vote and its going down every year as more elderly people who lived under communism die out.
On the contrary, a few of them even talk about lowering them. Most likely though after the next elections in Nov they will stay the same.

 

[Nicholas Van Orton]

@Martin Everson hitting the 'get out of the EUSSR while you still can' button in 3......2.....1....

 

[Martin Everson]

Heh, it's nice that they got out of this EUSSR , but the exit plan was executed poorly (I'm here being nice about it), and the long term consequences will be terrible, the EU want to make an example out of the UK, to scare off other member states, and I'm certain that they will do that.
will they succeed or will the UK show some resilience? Idk, but the future remains uncertain in the UK.

Agreed!!!

UK will go through turbulent times for the next years (5???) but after that it will be stronger than ever, with a solid economy, attracting capitals even more than before.

It will be longer as UK have not even put in custom checks which come end of this year . The full impact of Brexit is still pending and will hit UK very hard. Things like the financial services have been left out of Brexit agreement and are still being discussed. As financial services are important part of UK economy the EU has UK by the nuts. Once EU decides to bring i.e Euro clearing out of London and back into EU it will be a game changer and impact UK as a financial centre. Huge financial flows will move away from UK and so will banks etc. UK was only ever a English speaking financial hub for accessing EU for lot of international banks.

@Martin Everson hitting the 'get out of the EUSSR while you still can' button in 3......2.....1....

Well you hit that button for me now .

Get the hell out of the EU while you still can. Take your dog, take your cat and run the hell away as far as possible.

 

[cangarooo]

It will be longer as UK have not even put in custom checks which come end of this year . The full impact of Brexit is still pending and will hit UK very hard. Things like the financial services have been left out of Brexit agreement and are still being discussed. As financial services are important part of UK economy the EU has UK by the nuts. Once EU decides to bring i.e Euro clearing out of London and back into EU it will be a game changer and impact UK as a financial centre. Huge financial flows will move away from UK and so will banks etc. UK was only ever a English speaking financial hub for accessing EU for lot of international banks.

We can argue about "how long" but UK has far better overlook than EU.
And i strongly believe that is more EU in need of UK than the other way.
UK can defintely count on the interest of China and overall middle-east and far-east to invest.
Historically, London Stock Exchange has always been the number one stock globally. It went down in term of appeal since UK joined the EU.The Appeal is coming back predominatly together with the high smart sense of business that UK has always showed.
EU in the current setup is a failure and getting worse and worse with high claims of indipendency all over (Hungary is just a small example).

 

[cangarooo]

Just to follow up on my previous comment:
https://www.nytimes.com/2021/10/07/world/europe/poland-eu-law-constitution.htmlThat's just the beginning.
UK Brexit had lead the way!!!

 

[Martin Everson]

And i strongly believe that is more EU in need of UK than the other way.

What does EU need from UK exactly that is so important ?

UK can defintely count on the interest of China and overall middle-east and far-east to invest.

You what....do you not follow geopolitics? UK China relations are not exactly strong at moment. UK refusing Huawei 5G at behest of US. Now UK joining US and Australia under AUKUS to combat the Chinese in South China Sea. Then you got the Hong Kong tensions UK has with China, You have no idea what your talking about when you say "definitely"...lol.. What nutcase would want to invest in an island called UK cut of from rest of Europe. Gulf states will invest in UK but end of day its just a small island to wash and recycle and park oil money for them not to develop the country. The rest of middle east are not interested in UK.

UK is so desperate right now its kissing the feet of India even...how ironic knowing history or India and UK. Even US told them to get lost for a trade deal. UK even wants to join the Pacific Free Trade Area (CPTPP)...lol. Now that's a great opportunity to show UK leading the world after brexit .

Basically UK will become an international joke in future as they have no game plan for the future post brexit. They just have groveling for bad trade deals and becoming a vessel state of the US to look forward too.

 

[Rzeznik]

That's just the beginning.
UK Brexit had lead the way!!!

Damm as I am from Poland I can tell you that does nothing with fighting for freedom or moment behind it, in reality is quite opposite.
Rulling party replaced TOP court with politicians and rules now 100% correct with main party agenda.

The ruling party now wanted to exchange ordinary judges for its mediocre but faithful ones. They have also created a system for disciplining judges that prohibits reference to European law. Anyone who does not comply with it gets punished.

It's not cool because in the future in a court of law the citizen vs. the state will always lose, and if Poland breaks EU law then the judges won't give a f**k. This is more about arbitrary politicians than about the good of citizens.

Poland is a bit of a bamboozle, we seem to have rules, but everyone knows that there are so many of them that it is impossible to follow them - so we ignore them in most cases. The rules are there to f**k up anyone who fucks up the officials.

But you're probably right, something in this EU is cracking from the inside, we're not getting rich like before and the old voters are forcing welfare everywhere, overloading the system. It will be interesting to see when it explodes.

 

[khinkali]

in a court of law the citizen vs. the state will always lose

How did this happen? Why did this happen? What is The State, if not its citizens?

How does a ruling class rule over subjects, unless in an absolute monarchy?

Why do so many supposed democracies appoint rulers who exercise powers over citizens, in a way that absolute monarchies would not dare to?

And most of all, why don't people ask these questions?

 

[Rzeznik]

How did this happen? Why did this happen? What is The State, if not its citizens?

The median age of voter in Poland is 50+ those people doesn't care about future of their children that much but more about free medical expanses / faster retirement age / extra 13/14th age.
Ruling party before elections trows extra pensions 13th/14th , peole in age 60+ doesn't need stand in quee to vote like other (becouse of covid - no jokes it was like that ), in full lockdowns all places was closed but those for elders was not (churces was oppened all time ) , was special free entry hours for seniors. The state is for its voters especially those 60+.

How does a ruling class rule over subjects, unless in an absolute monarchy?

The Geneva prosecutor is a politician, and if any case comes up that refers to politicians, it is swept under the carpet. If someone wanted to check a ruling politician, he landed 500km away from home in the countryside. 20 prosecutors got their asses kicked like that. In general, the EU has a problem with the fact that the same thing the guys from the government want to do to the judicial system.

And most of all, why don't people ask these questions?

In case of Poland free stuff now and here is more important than existential questions. Many of those 60+ voters won't live long enough to see consequences of their choices they wan't their free stuff now that is all.

Some people say that Eastern Europe will be "smarter" and don't let "socialism" back because they know what is smells and how it ends.
In reality is opposite those people love when captain country gives them free stuff in cost of personal freedom till they have something to eat.
You can translate this mechanism to the whole of Europe, which is ageing and its voters are ageing too. Socialism will grow as in the USSR until it collapses in on itself. The funny thing is that the starving freedom fighters of the communist regime actually wanted more socialism for their families (more free stuff) and not individual or economic freedom.

 

[Martin Everson]

Some people say that Eastern Europe will be "smarter" and don't let "socialism" back because they know what is smells and how it ends.
In reality is opposite those people love when captain country gives them free stuff in cost of personal freedom till they have something to eat.
You can translate this mechanism to the whole of Europe, which is ageing and its voters are ageing too. Socialism will grow as in the USSR until it collapses in on itself.

Just wait until universal basic income (UBI) becomes a thing .

https://www.dw.com/en/universal-basic-income-an-option-for-europe/a-55711679
1,200 euros a month UBI in Germany as part of a trial??