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Bank’s Sliema office saved millions in tax A controversial Malta branch of the Commonwealth Bank is being wound down after its head of structured finance, Leanne Leone, announced her departure. The subsidiary played a key role in the Australian bank’s operations, using Malta’s low-tax status to save millions in corporation tax. Press reports say the Malta subsidiary, based in Sliema, has drawn the attention of the Australian Taxation Office, despite the bank’s claim that it meets all its tax obligations. Last December, CBA booked in its annual financial statements a €38.9 million benefit from lower offshore tax rates. The benefit was almost double that of its rivals (NAB, ANZ and Westpac – also listed among the four largest banks in Australia), “suggesting that the structure set up by CBA in the Mediterranean island nation is generating tens of millions of dollars in tax benefits.” Newport – the CBA subsidiary registered in Malta – controls CommBank Europe, which holds a banking license issued by the MFSA in 2005. Although CommBank’s office at the Strand Towers employs just six members of staff (including clerks and executives), Newport has a balance sheet of almost €3.1 billion. Newport’s recently released financial reports record a pre-tax profit of €169 million, or a net profit of €181 million after a tax credit of almost €12 million – signalling a much higher profit for the six-man show than that of Malta’s largest local banks. Any comments? |
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Managing editor Saviour Balzan | Tel. ++356 21382741 | Fax: ++356 21385075 | Email
Managing editor Saviour Balzan | Tel. ++356 21382741 | Fax: ++356 21385075 | Email