Offshore Banking In Malta
Posted: 14/06/2011 Filed under: Offshore Solutions Leave a comment »
Up until 1994 offshore banking was common in Malta. Since the creation of the European Union, Malta has made many significant changes in its banking industry. In 1994 Malta began the long process of abolishing offshore banking and only offered two options that included offshore, International Trading Companies and International Holding Companies. In 2002 Malta amended the 1994 Banking Act to start removing prejudicial tax regulations.
As part of Malta’s admission into the EU, they were required to amend their financial policies to treat local businesses the same as international companies, removing the unfair tax burden on local companies. As part of their financial reform Malta removed the offshore banking option and is no longer a tax haven in any sense. The Banking Act uses the EU as its main inspiration for the regulations and supervisory oversight it has enacted.
Since beginning financial reform in 1994 Malta has completed a reform program in all finance sectors. Malta was one of the first six countries world-wide to reach an accord with the Organization for Economic Co-Operation and Development and now uses international best practice, including the creation of a centralised regulatory agency.
The Malta Financial Services Authority (MFSA) was created to be the authority in charge of enforcement of the regulations and to act in a supervisory capacity to all financial institutions, including banks. It is a public institution that has full autonomy and reports directly to Parliament annually. The MFSA is the new single regulator for finance industry demoting the Central Bank of Malta, the Malta Financial Services Center, and the Malta Stock Exchange. The financial sector includes three basic industries; banking, investing and insurance. The MFSA is also the managing authority for the Registry of Companies and is responsible for the Listing Authority. The MFSA must function within strict legal limitations. The structure and organization of the Authority helps to make sure that the operational functions are within those limits. The Malta Financial Services Authority is empowered to:
- Establish regulatory requirements
- Monitor Risk
- Issue directives to Banks and other credit institutions
The creation of this regulator agency was a necessary building block toward creating a modern banking structure. This more flexible organization can handle the speedy changes needed in today’s business environment.
Osborne To Steer Us from Road To Ruin
Posted: 20/06/2010 Filed under: Investment, Non Dom, Offshore Solutions, Small Business, Uncategorized | Tags: business concerns, corporation tax, economy, election promises, Moving to London, moving to UK, Taxation, uk companies Leave a comment »Spending cuts, tax hikes, inflation, unemployment. The way the papers carry on you could sometimes think the the UK was doomed instead of experiencing an economic crisis being endured by most first world countries. Thank goodness Osborne is assuring us that he will be able to avoid complete disaster. Personally I never had any doubt but there you go.
Apparently Osborne is proposing to take us to prosperity via a bit of budget pain. The big questions on his policies are yet to be answered yet of course and we will have the answer to those later in the week. The budget will be released on Tuesday. In the meantime there has been a lot of preparation put into making sure the British people are ready for the worst.
The thing about a change of government is that it is in the new regimes interest to make sure we know just how badly the last lot landed us in it. So it stands to reason that we have been feed a steady diet of doom and gloom, how else could Osborne ride to the rescue on his white charger?
Don’t get me wrong, I understand the need for a tough budget and I am fully expecting one. It is just that I think the pain we are feeling is globally spread rather than Britain localised. Despite what people have been saying recently I believe that the British standard of living is still far higher than many places.
In the meantime if you have taxation issues or are considering the intelligent move of starting a British company then please get in contact. We are experts on that stuff here.
Capital Gains Tax Encourages Investment Gambling
Posted: 11/06/2010 Filed under: Offshore Solutions, Remote Gambling License, UK Company Set Up | Tags: business concerns, corporation tax, gambling, gambling laws, gambling sites Leave a comment »We have talked before about the fact that the British love to gamble. And we have certainly covered the proposed capital gains tax rise planned for the UK. A recent article in the Telegraph talked about how one will cause people to be rewarded for the other.
The article was specifically pointing out that if the huge rise that is expected in capital gains tax does eventuate then people who have had a safe and steady attitude to investment and saving will be heavily penalized and those that gambled on the things far less trustworthy will nearly avoid the taxation all together.
It seems three million shareholders – a lot of them blue collar workers who have invested their earnings in their own companies — are likely to be hit hard by the increase in capital gains tax.
While those that invested in a kind of stock market gamble known as a spread bet, this is where you take a punt on which stocks will got up and which will drop, will miss out on being taxed at all. You don’t even have to own the shares.
Many experts are warning that this kind of reward for risk is likely to foster a gambling mentality and put people off the kind of patient long term investment that will see Britain recover its buoyant economy more quickly. It is also feared that the shift to avoid the huge taxation hike will result in the money going into the pockets of bookies rather than the coffers of the government.
Call me a cynic but I think that this type of talk is more likely to result in a change to laws to allow the taxing of spread betting than the stoppage of the proposed capital gains tax rise.
UK Top For European Investors
Posted: 03/06/2010 Filed under: Non Dom, Offshore Solutions, Small Business, UK Immigration | Tags: business, business concerns, Non Dom, non dom tax Leave a comment »Despite what sometimes feels like the best efforts of successive governments and the UK press, the UK is still top of the pile when it comes to European investment. Even though the press seems determined to talk nonsense about non doms owing the UK something more, European investors still see the UK as a very attractive place to spend their money.
In 2009, the UK attracted 678 investment projects, which gave us 2017 jobs. Terrible what all these foreigners are doing to our beloved Britain, hey?
“When seen in the context of 12 months during which the European economy suffered a deep recession, the resilience of the UK in securing FDI [foreign direct investment] is a remarkable economic success story,” said James Close, a partner at Ernst & Young.
Quite and and it is even more remarkable given the attitude of some people toward foreign investment.
Non Dom Issue Rears Head Again, Scaring Investors
Posted: 02/06/2010 Filed under: Non Dom, Offshore Solutions | Tags: corporate tax, corporation tax, moving to the UK, moving to UK, Non Dom, non dom tax Leave a comment »It seems to me whenever a politician needs a boost in popularity or more usually a distraction from the really important things taking place in our economy they turn the talk to the subject of non domiciles. Things that they think may not be as popular as a little non dom bashing. And a couple of weeks ago it happened again.
The idea that non doms should be hunted down and taxed within an inch of their lives came under discussion again. It was a discussion that quite frankly scared the life out of those in the know in the financial industry. Those that have no political barrow to push are fully aware that the UK gets its fair share from non doms in monetary terms. They are dismayed every time some politician ‘pledges to review’ the situation. It makes foreign investors nervous.
Believe it or not this is not a good thing, the UK does very nicely out of non doms and only those that have their own agenda would suggest otherwise.
As an article in the financial times pointed out recently further changes to the non-dom rules would be a “real deterrent for wealth-creating individuals to come from overseas”
Why is it the general public finds this so hard to understand? I think it is because politicians are intent on feeding them misinformation on the subject.
Non Dom Hangs Taxman By His Own Rope
Posted: 16/04/2010 Filed under: Non Dom, Offshore Solutions | Tags: business concerns, Moving to London, moving to the UK, moving to UK, Non Dom, uk investments Leave a comment »A very clever non dom made a fool of the UK taxation laws in court earlier this month. He effectively used the taxman’s most potent rule against him and won. This is not something we see every day and by that i do not mean a non domiciled individual beating the tax man, I mean anyone having a victory over them.
Even if you win on points in a battle with HMRC you usually get battered to within an inch of your life.
To cut a long story short, the non-dom managed to argue eligibility for the one get-out clause to Section 739 of British tax law, which is the UK’s most potent weapon against offshore tax evasion. This section contains the offshore anti-avoidance rules and the non-dom argued in an anonymised case that double taxation relief was necessary. The clever chap or lady or more likely their very clever lawyer argued that remittance rules superseded the argument put forward by the government body and the judge agreed.
You have got to admire anyone that takes on HMRC and wins. It is not for the faint hearted but it is sometimes necessary not least of all because of the ridiculous complexity of the laws governing offshore taxation.
If you are a non dom or you are wondering how that idea works in the UK we would be glad to talk you through it. just get in contact for a chat.
Immigration On the Agenda As Eyes Turn To Domestic Affairs
Posted: 14/04/2010 Filed under: Moving to London, Non Dom, Offshore Solutions | Tags: business, business concerns, Moving to London, moving to UK, uk investments Leave a comment »Up until now there has been a lot of focus on the economy in the lead up to this election but just recently things have started to turn towards domestic affairs and as soon as that happens the question of immigration into Britain comes up. The papers have been filled with news of national insurance hikes and speculation on raises to VAT but just for now they are discussing more closely how each party will deal with immigrants.
I believe it is a tricky area for each party steeped as it is in ignorance and sometimes almost hysteria fueled by the media. In a statement released by the labour party this week it is revealed that there will be higher emphasis placed on the need for fluent English for those applicants looking to obtain work in the public sector. I think it is great they are making this clear to the public but i refuse to believe that reasonable english skill have not always been fairly high on the agenda in this situation. Otherwise the candidate would not be fit for purpose as the saying goes.
I would like to see more said about how we are going to offer support and education regarding English acquisition to our new arrivals. I often work with new members of our community and I can assure you that they would love nothing more than ti improve their English skills. It is a total no brainer, if you as a native speaker encounter one or two people a week who you cannot understand and find that frustrating imagine the motivation of someone who is learning the language to do it quickly so they can communicate with those around them.
If you are thinking of moving to the UK, particularly if it is your desire to set up a company here then please do not hesitate to get in touch. We have been helping people to settle in the UK for many years.
Qrops Work Around UK Residency Rules
Posted: 06/03/2010 Filed under: Offshore Solutions | Tags: corporate tax, corporation tax, Qrops, Tax, tax refunds, Taxation, uk companies, UK tax Leave a comment »Right before I start talking about this subject let me do a bit of jargon busting for you. Qrops are, in their long form, Qualifying Registered Offshore Pension Schemes. And HNW, which I am going to get to in a minute are, by their other name, people who are considered to have High-net-worth.
So, some of you may have heard of Robert Gaines-Cooper. He is a gentleman who has HNW stauts and lived in the Seychelles for over thirty years. Happily obeying, one would imagine, all the tax rules of the place he considered to be his new home. Until the British government decided that he was still very much a British citizen for the purpose of taxes. This must have come as a very nasty shock for Mr Gaines-Cooper.
According to HMRC rules, individuals living abroad who do not permanently and become non-resident are subject to the same pension tax rules as members of UK pension schemes.This can work both ways though if you know what you are doing.
Qrops can be used to make significant tax savings so long as you are prepared to take them at the same time as you would have in the UK. And you choose the correct ones. There are 2,000 schemes approved by HMRC, but some are definitely better than others.
If you think this may be something you are interested in or if you have any other taxation related questions then give us a call here at St Mathew’s eAccounting we can take you through all the details and answer your questions.
UK Expat Tax Advice Rife
Posted: 05/03/2010 Filed under: Non Dom, Offshore Solutions | Tags: ex pat, ex pat taxation, uk ex pat tax Leave a comment »There seems to be quite a few article around at the moment on how best for ex pats or soon to be ex pats to handle their financial affairs. An article in the Guardian recently outlining the present situation caught my eye.
According to this article 5.5 million Britons have moved to live or work (or presumably both) overseas in the last ten years alone. A quite staggering figure. The other staggering figure that the article quoted was the one that stated that a further 2.1 million Brits plan on leaving this year.
Don’t get me wrong, I was aware that there was a fairly brisk movement of people abroad, i deal with those leaving on a daily basis, I was just not aware that it was quite so many. Personally i love Britain and have no intention of leaving but each to their own if these people are going to make the move then they deserve the best financial advice so they land in their new home in good shape on the money front.
This has become even more vital as the guardian article acknowledges as the Sterling takes a bit of a beating, leaving pensions producing less value. Many Britons who leave these shores can now take their pensions with them and if they go to places which have the right tax rules they can live quite well. The trick is knowing where best to go according to your circumstances.
If you are thinking immigrating either in or out of Britain we have all the information you need here at St Matthew’s eAccounting. Ring us for a chat about your options.
Offshore Account Confessions Abundant
Posted: 15/01/2010 Filed under: Offshore Solutions 1 Comment »The deadline for declaring any off shore accounts you may have has just passed and HM Revenue and Customs has revealed that 10 000 people have come forward.
The deadline was January 4th at 5pm and many left it to the last minute with 1000 people coming forward with their declaration on that exact day. Statistics on how many procrastinated until the last hour are unavailable but one does sense a certain reluctance among these people to make the disclosure. Given the amount some of them stand to lose this is understandable if not condonable.
They have made the right decision though because the consequences for anyone who choose to keep quiet are really quite dire. They face investigation, prosecution and 100% penalties in some cases. The HMRC expects to make around 500 million from this disclosure campaign.
Stephen Timms the financial secretary to the Treasury has this week made this comment: “Hiding money in offshore accounts to evade tax is economically and morally unacceptable. It robs public services of funding and places an unfair burden on the honest majority of taxpayers,”
It is hard to disagree with that statement.
Those people who came forward during the moratorium now face full disclosure of the amounts they held in off shore accounts and the horrible task of paying up. For some this is likely to be a substantial sum. One can imagine this is going to be one tax return that will be almost physically painful to file.
They have until the thirty first of January to file by paper or they can delay the inevitable until March twelfth by filing online.
