A scheme that allows people who evaded tax by stashing cash abroad to register their money and pay a reduced penalty will be out shortly.

Finance Minister Edward Scicluna yesterday reiterated the amnesty will give these people a last chance to come clean and warned that afterwards anybody who does not comply will face the brunt of the law.

The scheme had been announced in the Budget but Prof. Scicluna referred to it yesterday at the signing of a tax information sharing agreement with the US.

The agreement, an offshoot of the Foreign Account Tax Compliance Act (Facta), will enable the countries to combat evasion.

Working closely together to combat tax evasion

Prof. Scicluna said deeds mattered more than words in the fight against tax evasion.

“It is also a message to the people of both countries that the world has changed and governments were nowadays working closely together to combat tax evasion,” he said.

US ambassador Gina Abercombie-Winstanley said the agreement was a symbol of the deep relationship between the US and Malta. Exchanging information was an important tool to “detect, deter and discourage” tax evasion, she said.

No questions were taken after the signing.

ksansone@timesofmalta.com