Malta’s tax arrangements under US scrutiny: Senator demands answers from major accounting firms
I am sharing Politico’s report on US Senator Ron Wyden’s demand for information from PwC, KPMG, Deloitte and EY about Malta-based tax arrangements allegedly used by multinational corporations to avoid billions in taxes.
In other words, Malta’s tax arrangements are under scrutiny in Washington. As Politico reports, US Senator Ron Wyden is demanding answers from PwC, KPMG, Deloitte and EY about Malta-based structures allegedly used to help multinational corporations avoid billions in taxes. This deserves close attention here: the questions being raised have implications for Malta’s reputation and its financial services sector.
The inquiry is also confirmed by the US Senate Finance Committee.
Wyden demands details of Malta tax avoidance schemes
The top Democrat on the Senate Finance Committee sent letters to the heads of the Big Four accounting firms about their practices related to the Mediterranean tax haven.
Sen. Ron Wyden (D-Ore.) is asking the Big Four accounting firms whether they helped multinational companies duck the IRS by stashing profits in Malta.
In letters to Deloitte, EY, PwC and KPMG, Wyden, the ranking member on the tax-writing Finance Committee is demanding details of any tax avoidance strategies involving the longtime tax haven.
It comes after The New York Times reported earlier this year the firms are marketing proposals to help companies cut their tax bills by routing income through thinly used offices on the Mediterranean island.
The letter underscores of how Democrats, should they be returned to power in next month’s elections, are likely to put corporate taxes under a microscope.
“While working class Americans dutifully pay taxes on every paycheck, sophisticated accountants and tax lawyers are devising clever strategies for corporate giants to continue exploiting offshore tax havens to avoid paying their fair share,” Wyden wrote.