The U.S. and Malta have signed an agreement designed to cut off taxpayers’ attempts to use Maltese retirement plans to avoid U.S. taxes, the IRS said Tuesday.
- The agreement addresses concerns that some taxpayers believe they can contribute appreciated property tax-free to Maltese pension plans, then suffer no tax consequences when the plan then sells the property and the taxpayer collects the proceeds.
- Those taxpayers are “misconstruing” the income tax treaty between the U.S. and Malta, the IRS said. The new agreement stipulates that Maltese arrangements generally can’t be considered ...