Malta, part of the European Union; Tax avoidance and tax evasion.
On paper, according to the official numbers, Malta plays a remarkable role in the world economy. It’s a huge investment destination: There are only a bit over 500,000 people on the island. But it has attracted more than $500 billion in foreign direct investment. At the same time, Maltese companies have invested about the same amount overseas. That’s about a million dollars per man, woman, and child in each direction. Of course, it’s all fake. What we’re actually seeing is a proliferation of shell companies that are used by companies elsewhere as ways to launder, transfer their profits so that they pop up in Malta, which has a basically zero tax rate on corporate profits. This is a combination of tax avoidance and tax evasion. Avoidance is when it’slegal, although it probably shouldn’t be. Evasion is when it isn’t. There’s some of both going on in Malta. There’s quitea lot of actual money laundering and sheer criminal activity. Famously, an investigative journalist from the i...
