Recently Malta has been attacked through a series of articles which appeared in the local and international press, referring to what have been termed as the Malta Files. Such files refer to data obtained both from publically available information, as well as leaked documents. The data is being utilised to incorrectly portray Malta as an offshore jurisdiction or a tax haven due to its imputation tax system. In this paper we rebut allegations, several of which are based on incorrect statements and assumptions.

We have therefore prepared a synopsis of the arguments made by the press and which are easily rebutted by the facts relating to the Maltese tax system and the environment in which it operates.

1. The articles give the impression that Malta's imputation tax system, generally resulting in a 5% tax after the tax refund is paid, is a major discovery. It is worth remembering that the Maltese tax system was discussed in detail and agreed to (in March and November 2006) with both the European Commission (as well as with DG Competition from a State Aid perspective) and with the Member States within the Code of Conduct Group which reviews tax measures to enable a determination as to whether they are harmful in terms of the Code of Conduct for Business taxation.

2. Malta has always honoured EU and international principles and its obligations with regard to direct taxation.

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