"With a total of 152 partners and staff, our tax services registered significant growth in income with revenues for the 12 months to June 2019 accounting for 36% of the billings of the firm. As tax advisors, our role is to help our clients navigate through the complexity of the applicable rules and make informed decisions with respect to the tax risks they face."
Neville Gatt
Head of Tax
An array of services
Our tax practice, which is manned by a pool of accountants and lawyers with considerable experience, provides a spectrum of services for local and international businesses, as well as for individuals. We assist clients both with routine tax compliance work and also with tax advice on a range of topics. In addition to this, the tax unit is divided into a number of teams that are specialised in various fields of expertise which include indirect taxation, accounting, administration, regulatory and payroll services.
What we've done
- Technology & automation
- Anti Money Laundering and Regulatory Compliance Services
- Client conference and Indirect tax services
- Company administration services
- xLoS support
Technology & automation
Our tax practice continues to grow and be transformed in line with the economic and fiscal developments happening both locally and internationally and also in line with the needs of our clients. The service line has also invested heavily in technology and automation processes in order to improve its service offering to clients.
Anti Money Laundering and Regulatory Compliance Services
The obligations arising from Anti Money Laundering and Combatting the Financing of Terrorism regulations continue to make remaining AML/CFT compliant a challenging task that requires continuous investment. Today more than ever, complying with the Prevention of Money Laundering and Funding of Terrorism Regulations is a priority, even for small and medium sized subject persons. Our team of experts assist clients with the collating, screening and reviewing of all necessary client due diligence documentation in line with local regulations.
At the same time, we continue supporting clients with AML/CFT Business Risk Assessments and independent audits and assist them with remediation projects and tailored training and upskilling where necessary.
Client conference and Indirect tax services
We continue to see a growth in the need for VAT advice by our clients pushed mainly by the need to understand the VAT impact arising on new and more complex transactions particularly in financial services. The continuous changes in EU VAT legislation, new decisions of the Court of Justice of the European Union and local developments were also the subject of a very successful “Navigating Change” client conference held in June of this year. At the same time, we have continued to run a number of VAT related events at The Hub.
Company administration services
The service line also provides company administration services, which includes the maintenance of company secretarial records, payroll related services as well as the maintenance of accounting records. Indeed, in respect of the latter, we have seen a growth of our accounting technical team as a result of the developments in International Financial Reporting Standards and the complexity of accounting technical matters particularly for large multinational clients.
xLoS support
Our tax professionals moreover play an important supporting role in the audit of tax provisions and related data reflected in statutory financial statements.
A changing tax landscape
In recent years we have seen the profile of taxation rise dramatically across society as a whole, driven by several interrelated trends. Governments around the world continue to see public finances come under significant pressure. This fiscal squeeze has led Tax Authorities and policy makers to focus more on increasing tax compliance and become more agreeable to consensus at international and European levels. Meanwhile, companies continue their juggling act of managing their tax costs to be as efficient as possible while grappling with the complexities of tax laws, that are sometimes ill designed for today’s business realities.
This increased scrutiny has led amongst others the Organisation for Economic Co-operation and Development (OECD) to tackle the issue of tax base erosion and profit shifting (BEPS). The OECD’s Action Plan on BEPS began in 2013 with the aim of addressing perceived flaws in international tax rules, and proposals started being published by 2015.
In response, the EU Member States subsequently reached unanimous political agreement on the Anti-Tax Avoidance Directive (ATAD). ATAD is part of the Anti-Tax Avoidance Package (ATAP) originally presented by the EU Commission on 28 January 2016. The Directive has required all Member States to enact laws that largely implement the BEPS deliverables on interest limitations rules, hybrid mismatches and controlled foreign companies (CFCs) as well as additional measures on exit taxation and a general anti-abuse rule (GAAR). The Directive’s stated aim is to ensure minimum standards and as much as possible consistent implementation of certain anti-avoidance rules across the EU. These new rules, now and integral part of Maltese tax legislation, will present opportunities and challenges for Malta and its offering. The country’s success in continuing to be an attractive location for inbound investment will very much depend on its ability to balance its obligations towards its citizens and the international community, but without allowing for the conduct of international business to become too onerous or to breach any taxpayer rights.
The importance of this process to Malta's economy, and the constant focus it requires from all involved, cannot be underestimated. Our team continues to take a leading role, together with other tax professionals, to dialogue with the Government and Tax Authorities to achieve this balance, including by supporting such initiatives as the introduction of a Notional Interest Deduction Regime, a Patent Box Regime and Fiscal Consolidation, whilst operating in full compliance with Malta’s EU and International commitments.
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