[WATCH] Prime Minister urges political parties ‘to present united front’ on Malta’s taxation system

PM urges political parties ‘to present a united front’

Prime Minister Joseph Muscat has urged Malta’s main political parties to present a united front and defend Malta’s taxation systems against countries who see Malta as a competitor and who “stand to benefit” from false claims.

He was reacting to claims by a German state minister who described Malta as “the Panama of Europe”.

In what the German minister described as “a data leak”,  Norbert Walter-Borjans claimed that that data “revealed how corporations and private persons on the Mediterranean island use company braids to bypass tax in Germany in a big way”.

But the German minister’s concerns were soon dismissed by Finance Minister Edward Scicluna: “Pull another one. Since when the whole Maltese company register of Maltese-registered companies becomes foreign, offshore and German?”

It was later explained in a press statement through Scicluna’s ministry that the register of companies is publicly available through the MFSA’s website.

“Therefore, anybody can claim a copy of the register on a CD,” the ministry said.

“Secondly the number of companies registered over the years has reached around 80,000, of which 53,000 are still on the register.  The difference of 27,000 are companies that have been dissolved or struck off.

“Thirdly, Malta does not have an offshore company register. It is therefore clear that whoever is making such claims is grossly misinformed.”

When questioned by reporters on the German minister’s claims, Muscat said that Malta’s taxation system had always been under attack by its competitors.

“Malta’s system has always been under attack, with the difference that, in the past, the government and opposition were always united in defending Malta’s position,” he said.

Muscat explained that today’s system was that introduced by the PN administration, is OECD compliant and green lighted by the European Commission during Malta’s accession to the EU.

“Today, because of the election fever, we’re facing attacks coming from within the country.”

Muscat pledged that a Labour Party in opposition would help the government of the day to present a united front. He also reiterated that, if Labour would lose this election, Muscat will resign.

“I urge Simon Busuttil to make the same pledge and present a united front against those who try to harm the country.”

Muscat added that Busuttil need not “travel the world” to stop Malta’s reputation from being tarnished.

“All he needs to do is go to Bidnija,” he said, referring to the locality where blogger Daphne Caruana Galizia resides. Caruana Galizia has been the author of numerous posts against the government.