TAX INTERMEDIARIES – MANDATORY DISCLOSURE OBLIGATIONS
Directive 2018/822 of 25 May 2018 amending Directive 2011/16/EU with respect to mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements entered into force on 25th June 2018 (DAC6). The legislation, which has been implanted locally in S.L. 123.127, requires intermediaries, and in certain instances tax payers, to provide information on reportable cross-border arrangements.
EU-based tax lawyers, advisors and other practitioners who qualify as ‘intermediaries’ for the purposes of the legislation are required to disclose to their tax authorities cross-border arrangements that contain any of the ‘hallmarks’ specified. These mandatory disclosure rules provide for the automatic exchange of the information disclosed across EU Member States.
Further information on the mandatory disclosure rules is available in the Members Area.
PREVENTION OF MONEY LAUNDERING
As ‘subject persons’ under local anti-money laundering legislation, tax advisors and practitioners are required to adhere to the requirements and obligations arising thereunder. These would include, but are not limited to, the maintenance of adequate procedures for the proper identification of clients, and the obligation to report transactions which raise suspicion of money laundering.
GENERAL DATA PROTECTION REGULATION (GDPR)
The GDPR came into effect on 25th May 2018, and together with the Data Protection Act, 2018, forms part of the data protection regime in Malta. GDPR applies to persons who collect and process data, such as personal details of staff or clients, including tax practitioners and advisors. The extent of the application of the rules and the manner in which they impact tax professionals may vary from practitioner to practitioner, and the type of data collected and the use to which it applies could impact a tax professional’s obligations under the legislation.
The MIT Guide to GDPR for Tax Practitioners identifies the aspects of the complex GDPR that are relevant for tax professionals (whether sole practitioners or larger firms) and provides guidance on the application of the rules and the ensuing obligations. This will be available for MIT Members in the Members Area.