Malta ratifies the OECD’s Multilateral Convention on Mutual Adm
Malta ratifies the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters
An increase in worldwide operations results in a shift from bilateral to multilateral cooperation of tax authorities and from exchange of information on request to other forms of co-operation such as automatic exchange of information. On 29th May Malta, among other countries, deposited its instruments of ratification of the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters. This step followed the signing of the amended Convention on 26th October 2012.
The initiative was possible thanks to an amendment introduced by the OECD and the Council of Europe, which opened up the Convention to all countries, not only OECD members. The amended Convention provides for all possible forms of administrative co-operation between states in the assessment and collection of taxes, in particular with a view to combating tax avoidance and evasion. This co-operation encompasses exchange of information, including simultaneous tax investigations and participation in tax investigations abroad, assistance in recovery, including measures of conservancy and service of documents.
The Convention will enter into force the month following 3 months after the date of the deposit of the instrument of ratification.