20 April 2007 Rating 10% No Comment  

In preparation for the adoption of the euro as our national currency, the Ministry of Finance is launching a Currency and Bank Deposits Registration Scheme. The purpose of the scheme is to provide individuals residing here with a one-time opportunity to regularise their position in respect of their holdings of eligible assets in those cases where the associated income has not been declared for the purposes of the Income Tax Act. The scheme is also designed to encourage a gradual and orderly surrender of undeclared hoarded cash and to facilitate its integration into the formal economy through the financial system. The scheme will start on the 23rd of April and will end on the 31st of July. Eligible assets which may be registered under the scheme are currency notes denominated in Maltese lira and euro, and deposits in Maltese lira and euro, held with local banks where such assets represent income which was not declared for the purposes of the Income Tax Act. To benefit from the scheme, eligible assets must be registered on the appropriate form with registration agents appointed by the Central Bank of Malta (who must be commercial banks, stockbrokers, and other authorised financial intermediaries). Registration is covered by full confidentiality and all Appointed Registration Agents and the Central Bank are bound by the duty of professional secrecy. In order to register Maltese lira and/or euro bank deposits representing undeclared income, the applicant must submit original documentary evidence confirming that he was the beneficial owner of such registered assets on the 16th of April. In order to register Maltese lira and euro currency notes derived from undeclared income, such currency notes will have to be deposited with local banks in a special term deposit account for a period of one year without interest. Registration of Maltese lira and/or euro currency notes is subject to payment of a one-time fee of 4% of the registered amount whilst registration of Maltese lira and/or deposits with local banks is subject to a fee of 6%. Upon registration under the scheme, the beneficial owner of the registered assets will be exempted from retrospective action by the Government in respect of undeclared income represented by such assets in terms of the Income Tax Act.