‘These are challenging times, but the accountancy profession plays an important role’ – MIA CEO

In a Tax Conference organised by the Malta Institute of Accountants (MIA) on 10th November, MIA CEO Maria Cauchi Delia spoke of the important role the accountancy profession plays “in these challenging times.”

Ms Cauchi Delia highlighted how the EU was pushing for more transparency, consolidation and coordination on fiscal and economic policies, leading to several proposals in the fields concerning the profession, including anti-money laundering (AML) and taxation.

The MIA has been very active in providing feedback to the relevant institutions and at the appropriate fora, in Malta and abroad.

Major corporate tax reforms and a continuous push for compliance will be an inevitable reality for the Maltese economy and businesses in the years ahead, as international institutions seek new avenues for debt reduction, to fight climate change and achieve sustainable and equitable growth.

The MIA Tax Conference, which addressed these concerns, was attended by professionals, politicians, business leaders and other stakeholders.

Speaking of the difficulties that businesses are being faced with, the CEO stated that “these are challenging times, but the accountancy profession plays an important role in this change.”

Setting the context to the Conference, MIA President David Delicata said that in the current international scenario, wide-ranging reforms in tax are a given to make the international corporate tax framework fairer and fit for today’s economic realities. “International institutions, whether it’s the OECD or the EU, seek tax reform as a matter of, not only improving revenue, but also to bring stability and predictability in the global corporate tax framework.”

The conference was also addressed by Finance and Employment Minister Clyde Caruana, who explained that although the EU-level momentum for corporate tax reform has stalled, there is an air of inevitability that this will eventually happen.

Shadow Finance Minister Jerome Caruana Cilia shared his views on the proposed changes but called on authorities to ensure that Malta makes its voice heard in European and other international fora to advocate a more manageable rate of change, which would give tax administrators and practitioners time to adapt to the necessary changes.

Commissioner for Revenue Joseph Caruana detailed plans of his Office to focus its efforts on the taxpayers. He referred to the setting up of a working group, with the participation of the MIA, to identify simplification initiatives and to maximise the use of digitalisation in the future.

The conference also featured the virtual participation of Accountancy Europe’s Paul Gisby and Johann Barros who shed light on the drive coming from EU institutions to reform tax legislation.

Discussion and breakout panels, with the participation of several industry leaders and professionals, addressed relevant topics including succession planning in family businesses, selected practical challenges of transfer pricing, AML considerations for tax practitioners, as well as VAT developments in the financial services industry.

The Conference was brought to an end by the Chairpersons of the MIA’s Direct and Indirect Taxation Committees, Craig Schembri and Louise Grima respectively, who expressed the linkage between this Conference and the various activities carried out by their respective committees.