Conference examines DTAs

The elimination of double taxation has consistently been a government priority in its endeavour to remove any obstacles to cross-border investment by Maltese individuals and corporate entities, Finance Minister Tonio Fenech told the Malta Institute of Management's third annual International Taxation Conference earlier this month.

The event this year focused on double taxation treaties.

"We have adopted a proactive approach in this respect by going beyond our main trading partners and endeavouring to negotiate treaties even with jurisdictions with which we did not traditionally have strong commercial ties," said Mr Fenech.

MIM president Reuben Buttigieg said that double taxation agreements (DTAs)were traditionally one of the first kinds of agreements to be concluded between states after establishing diplomatic relations. This was a clear indication of the importance states give to them to the extent that they are prepared to forfeit revenue from tax to improve trade and investment relations.

Shadow Finance Minister Charles Mangion, warned against EU countries' urge to resort to more taxation.

"In our case, the fiscal deficit could be improved by a better management of public expenditure. Comparisons of tax rates between different EU states can be an interesting exercise, but seen on its own it can lead us to some unreliable conclusions."

The conference attracted delegates from Italy, the UK and Germany besides considerable interest from lawyers and tax practitioners from Malta. High profile speakers included Philip Baker, joint head of the School of Tax Law at Queen Mary at the University of London, Pasquale Pistone, Christian Ellul, Juanita Brockdorff, Robert Attard, Neville Gatt, Ramona Piscopo, Nick Goulding and Allison Christians.

The MIM will hold a VAT conference in October that will examine new regulations governing cross-border trade and returns.

For more information visit www.maltamanagement.com.