Bejgħ tal-passaporti u l-prinċpju ta’ lealtà fl-Unjoni Ewropea

Iktar kmieni din il-ġimgħa, l-kumitat tal-Parlament Ewropew dwar il-libertajiet ċivili u l-ġustizzja,  huwa u jiddiskuti rapport dwar il-bejgħ tal-passaporti (jirreferu għalihom bħala golden passports) mill-istati membri, jemfasizza li dan hu oġġezzjonabbli etikament, legalment u ekonomikament u dan apparti li dan joħloq bosta riskji għas-sigurtà.

Tul is-snin, il-Ministri, kemm f’Malta kif ukoll barra, emfasizzaw li ċ-ċittadinanza, fl-Unjoni Ewropeja, hi materja riżervata għall-istati membri. Hekk hu, imma mhux b’mod assolut. Il-prinċipju ta’ lealtà fit-trattati Ewropej ilewwen il-ħidma tal-istati membri fl-Unjoni. Anke l-oqsma li huma kompetenza nazzjonali għandhom ikunu meqjusa f’dan id-dawl.

Ħadd ma jikkontesta li ċ-ċittadinanza hi kompetenza tal-pajjiżi membri. Hekk għandu jkun. Imma meta nikkunsidraw il-bejgħ taċ-ċittadinaza hemm ħafna implikazzjonijiet oħra, ta’ gravità mhux żgħira. It-trattati tal-Unjoni Ewropeja dan jispjegawh bħala obbligu ta’ kooperazzjoni sinċiera  bejn il-pajjiżi membri, obbligu li bosta drabi huwa mfisser bħala l-prinċipju ta’ lejaltà:  lejaltà, jiġifieri bejn il-pajjiżi membri infushom.

Riċentment, l-amministrazzjoni immexxija minn Robert Abela fasslet emendi mhux żgħar għall-proċess li bih tkun akkwistata ċ-ċittadinanza b’investiment. Il-programm (Individual Investor Programme) inbidel ma skema residenzjali li eventwalment tista’ twassal għal ċittadinanza. Għalkemm l-Unjoni Ewropeja kienet infurmat b’dan it-tibdil, is-Segretarju Parlamentari responsabbli għaċ-ċittadinanza, Alex Muscat, indika li ma kien hemm l-ebda rispons mill-Kummissjoni Ewropeja.

Il-Parlament Ewropew ser jiddiskuti dan kollu fil-plenarja tiegħu tax-xahar id-dieħel.  L-abbozz tar-rapport, b’numru ndaqqas ta’ emendi, jemfasizza li l-iskemi taċ-ċittadinanza b’investiment “hemm it-tendenza li jkunu f’dawk l-istati membri li huma l-iktar esposti għal riskji konnessi mas-segretezza finanzjarja, bħall-evażjoni tat-taxxa, l-ħasil tal-flus u l-korruzzjoni.” 

Fost dawk li kisbu ċ-ċittadinanza Maltija b’investiment insibu lil: Anatoly Hurgin, akkużat bi frodi, kuntrabandu u ħasil ta’ flus kemm fl-Istati Uniti kif ukoll fl-Iżrael, Liu Zhongtian, biljunarju involut fl-aluminju, għaddej proċeduri kriminali fl-Istati Uniti dwar evażjoni  ta’ madwar żewġ biljun euro f’tariffi  Amerikani,  Boris Mints, biljunarju ieħor li qiegħed jiffaċċja akkużi dwar frodi fir-Renju Unit,  Pavel Melnikov, ukoll biljunarju li qiegħed ikun investigat fil-Finlandja dwar ħasil ta’ flus u frodi, u Mustafa Abdel-Wadood li ammetta akkuzi dwar frodi fl-Istati Uniti. Dawn ġew identifikati mill-istampa f’Malta bħala lihumafost dawk li xtraw passaport Malti. Ħadd mhu ser jeskludi li hemm iktar, għax dawn it-tip ta’ skemi huma kalamita għal dawn it-tip ta’ nies..

Dawn, u oħrajn, ħadu iċ-ċittadinanza minkejja li suppost li l-applikazzjonijiet tagħhom kienu eżaminati b’reqqa liema bħala!

Fid-dawl ta’ dan kollu l-logħob ta’ Bernard Grech li jirrifjuta li jieħu sehem fi proċess ta’ konsultazzjoni dwar il-ħatra ta’ regulatur ġdid għall-iskema ta’ ċittadinanza b’investiment tibgħat messaġġ żbaljat. Regulatur li jkollu l-barka ta’ Bernard Grech mhux ser itejjeb l-iskema taċ-ċittadinanza.

Irrispettivament minn kemm jinbidlu r-regoli dwar l-iskema tal-bejgħ tal-passaporti, din tibqa’ mhux aċċettabbli fil-prinċipju. Kif jingħad fir-rapport pendenti quddiem il-Parlament Ewropew iċ-ċittadinanza Ewropeja mhiex għall-biegħ.

Ir-rapport quddiem il-Parlament Ewropew jgħid li l-iskemi taċ-ċittadinanza b’investiment fihom ħafna riskji u mhumiex kompatibbli mal-prinċipju ta’ kooperazzjoni meħtieġa bejn l-istati membri tal-Unjoni Ewropeja. Fid-dawl ta’ dan għandhom jispiċċaw sa mhux iktar tard mis-sena 2025 jgħidilna ir-rapport tal-Parlament Ewropew..

Il-flus jistgħu jkun utli, jgħid Bernard Grech, kieku l-iskemi jkunu trasparenti.  Hi l-istess attitudni li l-PN fil-Gvern daħħal fis-sistema ta’ tassazzjoni meta spiċċa daħħal proposti li jinkoraġixxu l-evażjoni tat-taxxa.  

L-iskema tal-bejgħ tal-passaporti  flimkien mal-abbuż kontinwu tas-sovranità tal-pajjiż fil-qasam tat-tassazzjoni bit-tnaqqis fir-rati ta’ taxxa għal kumpaniji barranin li b’hekk ġew inkoraġġiti jevadu t-taxxi ta’ pajjiżhom huma uħud mir-raġunijiet li wassluna sal-lista l-griża. Tul dawn l-aħħar xhur imma, l-Ministru tal-Fnanzi beda jċedi u jidher li issa mexjin lejn li naċċettaw rata minima u armonizzat ta’ taxxa.

Bħala partit ilna ninsitu fuq din it-triq. Sfortunatament b’wiċċna minn quddiem nistgħu ngħidu li ghidna ċar u tond kif kienu l-affarijiet. Issa jmiss li tispiċċa l-iskema tal-bejgħ tal-passaporti ukoll. M’għandniex bżonn li jkunu istituzzjonijiet barranin li jgħidulna x’inhu tajjeb u x’inhu ħażin. Kapaċi, jekk irridu, li dan nagħmluh aħna stess. 

Huma biss membri parlamentari eletti mill-lista tal-kandidati ta’ ADPD li jistgħu jassiguraw li jsir it-tibdil kollu li hu meħtieġ. Bernard Grech u l-PN ma jistgħux ikunu is-soluzzjoni. Huma parti mill-problema.

ippubblikat fuq Illum: il-Ħadd 20 ta’ Frar 2022

Golden passports & the EU’s loyalty principle

Earlier this week, the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs, when discussing a draft legislative initiative report emphasised that golden passports are objectionable ethically, legally and economically and pose several serious security risks.

Over the years government Ministers, in Malta and elsewhere, have emphasised that issues of citizenship and passports are a national reserved matter, within the European Union.  They are right, but, only to a certain extent. The principle of loyalty in the EU treaties underpins the functioning of the individual member states within the Union. Even the national competencies have to be implemented with this principle in mind.

No one contests that nationality issues are a national competence. They should remain so. There is however much more than state competence at stake. Article 4.3 of the Treaty on the European Union explain this as the principle of sincere cooperation, at times referred to as the loyalty principle: loyalty, that is, towards the other European member states.

Recently, the Robert Abela administration has sought to reform the process of acquiring citizenship by investment. The original rules were overhauled. The IIP (Individual Investor Programme) was replaced by a residency scheme which could, eventually lead to acquiring citizenship. The EU was informed of all this and Parliamentary Secretary Alex Muscat, responsible for citizenship has indicated that there has been no feedback on the matter from the EU Commission.

The EU Parliament will discuss the matter in plenary next month. The draft report which, with a multitude of amendments proposed, will be considered, emphasises among other matters that such Citizenship by Investment (CBI) “schemes tend to be located in Member States that are particularly prone to risks related to financial secrecy, such as tax avoidance and money laundering, and corruption.”

Among the new Maltese citizens by investment, one finds: Anatoly Hurgin, charged with fraud, smuggling and money laundering in the US and Israel, Liu Zhongtian, an aluminium billionaire indicted in the US on avoidance of €2 billion in American tariffs, Boris Mints, a billionaire facing fraud charges in the UK, Pavel Melnikov, another billionaire under investigation in Finland for money laundering and tax fraud and Mustafa Abdel-Wadood who pleaded guilty to conspiracy and fraud charges in the United States. These have been identified by the Maltese press. I would not exclude that there are more of them as such schemes are a natural attraction to them. So far they have avoided the radar of public scrutiny.

Quite a collection! All of them were okayed by Malta’s “rigorous due diligence”!

In view of the above, Bernard Grech’s postering through his refusal to engage in consultation on the appointment of a new regulator for golden citizenship sends a wrong message. A regulator acceptable to Bernard Grech will not make the citizenship by investment scheme any better.

The golden passport scheme, irrespective of the tinkering with the rules carried out, is unacceptable in principle. EU citizenship, says the EU Parliament report currently under consideration “is not a commodity that can be marketed or sold and has never been conceived as such by the Treaties.”

European values are not for sale, says the said report: “in the light of the particular risks posed by CBI schemes and their inherent incompatibility with the principle of sincere cooperation, CBI schemes should be phased out fully across the Member States”. The proposal before the EU Parliament is that these should be phased out by 2025.

The money justifies it, says Bernard Grech, if only it were more transparent. It is the same attitude which the PN-led government built into our taxation system, when it introduced measures encouraging tax avoidance.

The golden passport scheme coupled with the continuous abuse of Malta’s tax sovereignty through offering substantial tax discounts to foreign commercial entities, encouraging tax avoidance, are part of the reasons which have led to Malta’s grey-listing. During the last months, Malta’s Finance Minister has finally capitulated and he is now steering the country towards the acceptance of a harmonised minimum tax rate.

Greens have been advocating this course of action for ages. Unfortunately, we can hold our heads high and state: we told you so! The golden passport scheme should be next for the chop. We do not need foreign institutions to tell us what is right or wrong. We can do it ourselves.

Only members of parliament elected from the list of ADPD candidates can ensure that the required overhaul is carried out. Bernard Grech and his PN cannot be the solution. They are part of the problem.

published on The Malta Independent on Sunday : 20 February 2022

Meta l-istat jinkoraġixxi l-evażjoni tat-taxxa

F’indirizz li għamlet nhar it-Tnejn liċ-Chicago Council on Global Affairs, Janet Yellen, Segretarju għat-Teżor tal-Istati Uniti, ippreżentat l-argument favur taxxa minima applikabbli għall-korporazzjonijiet multinazzjonali fuq livell globali, irrispettivament minn fejn huma bbażati.  Proposta ta’ din ix-xorta, kif rappurtat min-New York Times, ikollha s-saħħa li żżomm lil dawn il-kumpaniji milli jċaqilqu l-profitti tagħħom minn post għall-ieħor biex jevadu l-ħlas tat-taxxi dovuti minnhom.

Meta jitnaqqsu it-taxxi biex tinġbed l-industrija u n-negozju, emfasizzat  Ms Yellen, hemm is-sogru li mmissu l-qiegħ: fejn ser tieqaf? Ma nistgħux nibqgħu sejrin hekk. Il-kompetittività mhiex biss kif kumpanija tmur fil-konfront ta’ kumpaniji oħra.  Hi ukoll il-mod li bih nassiguraw  li l-gvernijiet ikollhom sistemi ta’ ġbir ta’ taxxa li jkunu stabbli b’mod li jistgħu jiġbru biżżejjed fondi x’jinvestu f’servizzi publiċi u jkunu f’posizzjoni li jirreaġixxu fi żmien ta’ kriżi. Hu meħtieġ li ċ-ċittadini bejniethom jerfgħu b’mod ġust il-piż tal-finanzjament tal-gvern.”

Din il-materja hi diġa fuq l-agenda tal-Unjoni Ewropeja. Hi opposta b’qawwa minn Malta, il-Lussimburgu, l-Irlanda u pajjiżi oħrajn.  L-argument dwar l-armonizzazzjoni tat-tassazzjoni hu parti integrali mill-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus.

Hu ta’ sfortuna li Malta (u pajjiżi oħrajn) repetutament abbużat mis-sovranità tagħha fuq materji ta’ taxxa. Huwa riżultat ta’ dan l-abbuż repetut li l-proposta dwar l-armonizzazzjoni tat-taxxa qabdet l-art b’mod li issa hi appoġġata ukoll mill-Istati Uniti tal-Amerka.  Malta rmiet il-vantaġġ kompetittiv tagħha billi abbużat minnu repetutament. Il-ħsara lir-reputazzjoni tal-pajjiż hi għaldaqstant awto-gol mill-kbar.

Malta ma tistax tkun kredibbli fil-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jekk ser tibqa’ tiffaċilita l-evażjoni tat-taxxa fuq skala internazzjonali.  Xi snin ilu il-Grupp tal-Ħodor fil-Parlament Ewropew kien ippubblika studju intitolat Toxic Tax deals: when BASF’s tax structure is more about style than substance. Dan ir-rapport kien svela kif tul is -snin, il-kumpanija Ġermaniża ġgant tal-kimika BASF kien irnexxielha tevita u tiffranka l-ħlas ta’ biljun euro f’taxxi fuq 4 snin billi użat lill-Malta għal dan l-iskop. Dan sar billi kumpanija sussidjarja ġiet reġistrata f’Malta u t-taxxi dovuti, għax l-azzjonisti mhux residenti f’Malta, ħadu lura 6 euros minn kull 7 li kellhom iħallsu f’taxxa!

Il-każ tal-Korporazzjoni Amerikana Apple fl-Irlanda, kif nafu, wassal għall-evażjoni ta’ 13-il biljun euro f’taxxi. L-iskandlu Luxleaks fil-Lussimburgu ukoll wera kif dan il-pajjiż żgħir fost il-fundaturi tal-Unjoni Ewropeja ukoll kien qed jinkoraġixxi l-evażjoni tat-taxxa.

Dawn huma ftit mill-eżempji. Bla dubju hemm bosta oħra li s’issa huma moħbija mill-iskrutinju pubbliku. Bħala riżultat ta’ dan kollu madwarna għaddejja evażjoni ta’ biljuni ta’ euro ta’ taxxi, kontinwament. Malta, l-Irlanda, il-Lussimburgu u xi pajjiżi oħra jiġbru parti żgħira mit-taxxi dovuti bħala ħlas talli jippermettu din l-evażjoni ta’ taxxa fuq skala pjuttost kbira.

F’Malta dan kollu kien possibli bħala riżultant tal-hekk imsejjaħ “kunsens nazzjonali” bejn il-PLPN dwar il-qasam finanzjarju. “Kunsens” li ilu fis-seħħ numru ta’ snin. Il-ħsara lir-reputazzjoni ta’ Malta li seħħet u għad qed isseħħ bħala riżultat ta’ dan kollu, għaldaqstant, ma jġorriex il-Partit Laburista waħdu. Il-Partit Nazzjonalista ukoll għandu resposabbiltà xi jġorr. Għalhekk fuq dawn il-materji in-Nazzjonalisti u l-Labour dejjem iħokku dahar xulxin.  

Sfortunatament l-evażjoni tat-taxxa u l-ħasil tal-flus huma ħafna drabi konnessi. Bosta drabi fejn issib waħda issib l-oħra ukoll.

It-triq il-quddiem m’għandiex ikollha impatt fuq is-sovranità fil-qasam tat-tassazzjoni kif determinat mit-trattati Ewropej permezz tal-ħtieġa tal-unanimità f’materji konnessi mat-taxxa. Imma hemm bżonn urġenti li l-qasam tal-politika fiskali ukoll jinbena fuq prinċipji etiċi b’saħħithom. U mhux dan biss. Għandu jkun assigurat darba għal dejjem li Malta ma tibqax tiddependi minn dħul ġej mill-evażjoni tat-taxxa.

Għax id-dipendenza tal-ekonomija Maltija fuq l-evażjoni tat-taxxa (u l-bejgħ tal-passaporti) hi ta’ inkwiet kbir għall-pajjiż. L-industrija tal-evażjoni tat-taxxa hi sors ta’ dħul kif ukoll ta’ impiegi li it-tnejn li huma inevitabilment jintilfu fi żmien qasir. Wasal iż-żmien li nippjanaw għal futur nadif, futur li mhux iktar dipendenti fuq l-evażjoni tat-taxxa.

Ippubblikat fuq Illum: il-Ħadd 11 t’April 2021

When the state encourages tax evasion

In a speech delivered on Monday to the Chicago Council on Global Affairs, Janet Yellen, US Treasury Secretary, made the case for a global minimum tax applicable to multinational corporations irrespective of where they locate their headquarters. Such a proposal, reported the New York Times, would prevent companies from shifting profits to evade taxes.

Lowering tax rates to attract business, emphasised Ms Yellen, is a race to the bottom which has to be addressed. Competitiveness is not just how companies fare against other companies. It is also about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crisis, and that all citizens fairly share the burden of financing government.

This issue is already on the agenda of the EU facing fierce opposition from Malta, Luxembourg, Ireland as well as others. The issue of tax harmonisation is an integral part of the fight against tax evasion and money laundering.

It is unfortunate that Malta (and others) have been repeatedly abusing its tax sovereignty. It is as a result of such repeated abuse that the proposal for tax harmonisation is gaining ground such that it now has the support of the United States of America too. As a result of greed Malta has squandered a competitive advantage by abusing it repeatedly and continuously. The resulting reputational damage is hence an own goal.

Malta (and the other countries) cannot be credible in the declared fight against tax evasion and money laundering if it keeps facilitating tax avoidance on an international scale. Some years back the Green Group in the European Parliament had published a study entitled Toxic Tax deals: when BASF’s tax structure is more about style than substance. This report reveals that over the years, the German chemical giant BASF used Malta to avoid the payment of one billion euros in taxes. This was done using the “legal” possibility to have tax refunds of up to six sevenths of the tax due in such cases where shareholders are not resident in the Maltese islands. Tax avoidance is tax evasion sanctioned by the state.

The Apple Corporation case in Ireland as a result of which another €13 billion in taxes were avoided is another example of tax evasion sanctioned by the state of Ireland. Luxleaks had also revealed countless of other examples as a result of which Luxembourg too embarked on state encouraged tax-evasion.

These are just some examples of many: the proverbial tip of the iceberg. There are undoubtedly countless of others, currently below the radar of public scrutiny, as a result of which the payment of billions of euros in taxes are being continuously avoided. Malta, Ireland, Luxembourg and other countries receive a small part of the actual tax due as a result of facilitating this state encouraged tax evasion.

Locally this scam is the result of the PNPL “national consensus” on financial institutions and fiscal policy in force for a number of years in Malta. The responsibility for the resulting reputational damage is thus not one to be shouldered by the Labour Party on its own, it has help from the PN which has continuously buttressed this abusive behaviour.

Unfortunately, tax evasion and money-laundering are inseparable twins!

The way forward need not impact the tax sovereignty afforded by the EU treaties through the unanimity rule on taxation issues. However, it necessitates ensuring that policy on all fiscal issues is also founded on sound ethical principles.

In addition to ensuring that fiscal policy is not in any way unethical it is about time that Malta does not any more, in any way, depend on tax avoidance.

The dependence of Malta’s economy on tax avoidance (and the sale of citizenship) is very worrying. The tax avoidance industry is a source of both revenue to the state and employment opportunities, both of which will be lost in the not-so-distant future. It is about time that we start planning for a cleaner future, a future that is, which is not dependent on the tax avoidance industry!

Published in the Malta Independent on Sunday : 11 April 2021