The investment registration scheme has been extended to November 15. Some people are asking why the government extended the scheme.

I think that the government did well to extend the scheme for a number of reasons:

1. Requests made by local financial services providers to extend the scheme, as a result of numerous requests made by individuals to register their assets as they had been misinformed about the scheme.

2. The ministers of finance and economic services of the EU signed an agreement on June 3, whereby they agreed to exchange information on income earned by EU residents. This, with the exception of Austria, Belgium and Luxembourg, who will implement a system of withholding tax.

3. The Channel Islands and the Isle of Man agreed to withhold tax at source or exchange information, depending on clients' wishes. The choice will be left to the clients. However, although this might be straightforward with bank accounts, it is not yet as clear whether this option will also be made available by all collective investment schemes.

4. Switzerland, which is also not a member of the EU, will apply the withholding tax at source policy.

5. The rates applicable by these countries will be 15% from January 2005, 20% from January 2008, and 35% from January 2011.

6. Last time round the regulations were changed at the eleventh hour and investors were not given enough time to decide.

7. The election was round the corner and different avenues for Malta were being considered.

With all this new information, investors who did not regularise their position last year should reconsider their position in the light of all these events.

The advantages of registering have now been enhanced with these changes. Investors should consider the advantages of registering their assets, which can be summarised as follows:

1. Confidentiality of information - registration is covered by confidentiality and the Appointed Registration Agents and the Central Bank are prohibited by law from disclosing information obtained in the process of registration;

2. On registration a person will be considered as never having contravened the Exchange Control Act and/or the Income Tax Act and no retrospective action can be taken by Government with regard to the registered assets;

3. Persons who have claimed social security benefits will not be asked to pay back the benefits if they were not entitled to receive these benefits in the first place. Obviously, they cannot continue to claim such benefits if they are not entitled to do so;

4. Peace of mind and accessibility to one's own money, without fear of being investigated or asked to provide the source of origin unless such funds originated through an illegal act;

5. Investors do not need to repatriate their foreign funds to Malta but can retain their existing investments wherever they are held;

6. Income derived from most registered assets will be liable to only 15% withholding tax. Investors should be aware that collective investment schemes not licensed in Malta are subject to the marginal tax rate applicable to each individual;

7. If a person does not declare his/her assets he/she could soon be paying up 35% on the income earned and nobody should assume that this option is for ever; and

8. Peace of mind for the family on inheritance of foreign assets.

All in all, there are too many advantages to let this opportunity go by. Regularise your position. Time is running out... You have up to November 15.

Jesmond Mizzi is chairman and managing director of Jesmond Mizzi Financial Services Limited, which is licensed by the MFSA to provide investment services. E-mail: jmizzi@ jmfs.net.

This article does not intend to give investment advice and the contents therein should not be construed as such. Readers are encouraged to seek professional advice regarding their personal financial situation.