Amendments to the Cooperation with Other Jurisdictions on Tax Matters Regulations  

On 17 December 2019, the Cooperation with Other Jurisdictions on Tax Matters (Amendment) Regulations 2019 were published through Legal Notice 342 of 2019 (hereinafter, the ‘Regulations’).

The Regulations brought about several changes, the most salient of which include the implementation of Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (‘DAC6’).

In terms of the Regulations, intermediaries are required to file information that is within their knowledge, possession or control on reportable cross-border arrangements to the Malta Commissioner for Revenue.

A cross-border arrangement would be considered reportable in terms of the Regulations if it contains at least one of the hallmarks listed in Annex IV of the Regulations. For the purposes of the Regulations, a hallmark means, certain characteristics or features that present an indication of a potential risk of tax avoidance.

The obligation to file information on a reportable cross-border arrangement shall lie with the taxpayer where there is no intermediary, or alternatively where the filing of information by the intermediary would constitute a breach of professional secrecy.

The Regulations will be applicable from 1 July 2020. Intermediaries and/or taxpayers, as the case may be, are required to collect the relevant information in connection with reportable cross-border arrangements whose first step was implemented on or after 25 June 2018