The accountancy and auditing profession is called to play a wider role in achieving the nation’s net zero targets and in facilitating the transition towards a more sustainable economy. This reality is backed by an ever-growing realisation by stakeholders that companies do not operate in isolation but are part of a dynamic ecosystem where their actions impact the planet and people.

The centrality of the accountancy profession in taking a leading role in driving organisations towards sustainable outcomes emerged during a conference hosted by the Malta Institute of Accountants targeted at small and medium-sized practitioners.

Mark Anthony Bugeja, MIA President, highlighted the cultural shift which is transforming the global economy. “Employees, investors, customers have changed the way they go about many aspects of their life. A significant shift has taken place in the way people look at the corporate world, what they expect from it, the standards they expect it to follow”. In this context, he added, the accountancy professional takes a central role in leading this transformation through advice and effective reporting.

With this enhanced role putting further pressure on the availability of human resources, MIA CEO Maria Cauchi Delia shared the Institute’s proactivity in enhancing the country’s ability to attract increasing numbers of accountancy and auditing professionals. The Institute has shared various proposals with authorities in terms of facilitating the recruitment and retention of third country nationals while investing further in its #AccountsForYou campaign to reach out to the younger generation and help develop keener interest in the industry and this profession.

Ms Cauchi Delia also gave details of the constant exchanges with authorities and regulators, through which the Institute puts forward necessary recommendations and shares feedback on proposed regulatory developments in the interest of the profession and beyond.

The Conference also covered the latest developments in banking and in the realm of tax, with discussions focusing on elements such as corporate tax reform, Pillar II, transfer pricing and succession planning with its fiscal implications. In this context, tax experts noted the deferment of any major changes to corporate tax for a further six-year period but insisted on the need to strengthen further the financial jurisdiction to ensure its competitiveness in the year ahead, anticipating the inevitable fiscal reform.

In consideration of the increasing role played by voluntary organisations as a social backbone to communities, the event featured a fireside chat with Mr Jesmond Saliba, the Commissioner for Voluntary Organisations (VOs), who shared insights associated with the wide-ranging reform in the sector. The Institute provided extensive feedback relating to reform of this sector, re-iterating its calls for a level playing field in terms of expectations associated with financial reporting.

The Conference was hosted with the organisational backing of the MIA’s Small and Medium Practices Group was supported by Thomson Reuters and Scope Solutions.

Investment in digital tools and skills is fundamental in addressing the twin challenges of talent scarcity and regulatory requirements, and is key in enhancing the nation’s competitiveness in the years ahead. The need for such investment is also increasingly required to strengthen the organisations’ ability to meet expectations in emerging areas such as sustainability while creating added value for shareholders and stakeholders.

This was a key underlying theme which emerged strongly by both regulators and business operators during the second  Conference organised by the Malta Institute of Accountants (MIA) this year, and which addressed key challenges impacting the profession.

Introducing the event, MIA Chief Executive Officer Maria Cauchi Delia said that accountancy professionals play a key role as drivers in creating added value within the operations of the companies they work for. She called for further investment in technology and digital tools and skills, which are fundamental to reduce administrative burdens while addressing talent shortage which afflicts the Maltese economy at the present time.

This view was shared by other speakers. In fact, it was  noted that with Malta approaching full employment and an ageing workforce, it required a major effort to allow technology to take over several jobs, to allow firms to channel their resources to more productive, higher value-added activities.

Representatives from various regulators  acknowledged the increasing regulatory challenges impacting Maltese organisations, while highlighting that most of these changes are being driven from a European or international level. The different regulators highlighted their effort to invest in technology to facilitate the regulatory process, while emphasising the importance for businesses to ensure compliance.

Various discussion panels led to lively debates, including with public interaction, on issues such as sustainability, the advance of AI in supporting business development, as well as the role of accountants and Chief Financial Officers in driving value creation – hence the transition to Chief Value Officer,  elements which are also intrinsically tied with Malta’s competitiveness efforts. These panels featured top officials from some of Malta’s top businesses in various industries. Various business leaders expanded on the role of technology, both in driving organisational efficiency, enhancing data-driven processes and improving regulatory compliance.

A final stakeholder panel brought together representatives from banks in search of solutions to strengthen relationships between the profession and the banking industry, with the latter being seen as a key stakeholder for industry growth and success.

The Conference was organised with the support of the MIA Professional Accountants in Business (PAIB) Group and supported by Scope Solutions, Softline Computer Systems Ltd and APS Bank.

The Institute of Financial Services Practitioners (IFSP), the Malta Institute of Accountants (MIA), the Malta Institute of Taxation (MIT) and the Society of Trusts & Estate Practitioners (STEP — Malta) are deeply concerned about the current situation in the country.

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The Malta Institute of Accountants is seeking an experienced auditor to provide external audit services. 
 
For more information and to submit your interest please click here.
 
In case of any queries or clarifications contact the Finance department. 

The Malta Institute of Accountants announces the formalisation of a corporate sponsorship agreement with Scope Limited, an innovative firm specialising in cloud applications for businesses and accounting firms.

Scope, as the first local and holistic born-in-the-cloud app specialist and cloud integrator, brings extensive expertise in identifying, implementing, and integrating cloud applications tailored for businesses and accounting companies.

This partnership between MIA and Scope Limited also reflects commitment to driving innovation, knowledge sharing and professional development within the accounting sector. Both organisations are dedicated to leveraging their strengths to create new opportunities for their respective stakeholders, thus adding further value to this collaboration.

The Malta Institute of Accountants host AML Conference 2024

Industry stakeholders need to work together and push in the same direction to ensure the enhanced reputation of Malta’s jurisdiction, which is a fundamental element in strengthening the country’s competitiveness. This message found widespread support among accountancy and auditing professionals, industry operators as well as key regulators during the Malta Institute of Accountants’ AML Conference 2024, hosted in collaboration with the Financial Intelligence Analysis Unit (FIAU).

Representatives from key stakeholders including the FIAU, MFSA, the Malta Tax and Customs Administration, the Malta Business Registry and the National Coordinating Committee on Combating Money Laundering and Funding of Terrorism participated and shared their insights and outlook in panel discussions and fireside chats during this event which brought a spotlight on the latest developments in the AML world.

Welcoming participants, MIA President Mark Bugeja noted that all stakeholders stand to benefit from the success and improved reputation of our financial services jurisdiction. “Beyond the legal ramifications, fostering a compliance culture within businesses is indispensable for safeguarding their reputation and preserving public trust”, he argued. Ms Maria Cauchi Delia, the Institute’s CEO appealed for professionals, firms and regulators to work together to strengthen Malta’s fight against money-laundering, insisting that collaboration was fundamental to achieve success on this front.

The AML Conference featured an in-depth analysis and discussion on the recently-published National Risk Assessment (NRA) for Malta, with key speakers highlighting the need for subject persons to incorporate the risks outlined in this updated NRA into their risk assessments, and to thoroughly review and update controls, policies, and procedures as needed to address and mitigate the identified risks.

After discussing the bigger picture, the Conference proceeded to address specific elements impacting the industry, such as corporate governance as well as supervision and enforcement, all of which play an important role in enhancing safeguards against both money-laundering and terrorism financing.

Further discussions focused on the new European legislative and regulatory initiatives in the pipeline, particularly the Single Rulebook and the establishment of AMLA, the new EU-wide anti-money laundering authority, providing a European perspective to developments which will transform the AML landscape over the years ahead. Indeed, most of the new rules, together with the supporting technical standards and guidelines, will be applicable in three years’ time, putting an onus on practitioners to prepare accordingly.

The AML Conference wrapped up with a case-study analysis during which panellists examined feedback from real-life situations, highlighting the significance of conducting thorough checks during onboarding, understanding a client’s business model and the origin of wealth, and the importance of continuous monitoring.

The MIA AML Committee contributed to the organisation of the AML Conference 2024, which was supported by Citadel Insurance, Thomson Reuters, Domain Academy and FinXP.

The Malta Institute of Accountants has formalised the reconstitution of its thirteen committees and focus groups, and twenty working groups for a new two-year term, ensuring a fresh influx of expertise and perspectives within its setup, joining forces with already established members. The new committee formations, effective this January, play a major contribution in supporting the activity of the MIA and fostering professional growth and excellence within the accountancy community.

To mark this renewal, a networking event was held at Villa Arrigo, attended by over 160 members of these committees and groups, together with MIA Council members, management and staff, creating a platform for collaboration and exchange of ideas in preparation of the task ahead.

These committees and groups play a pivotal role by backing up the Institute in shaping the industry landscape by producing technical documents, consulting with members, responding to consultation documents, organising CPE events and staying abreast of proposed EU and national legislation. Together, they also play a key role in enhancing the visibility and branding of the Institute and the accountancy profession itself, while contributing to efforts intended to increase awareness about this profession among the younger generation.

The Committees cover core areas of the profession and various niches of the wider financial industry, including taxation, audit, sustainable finance, digital, ethics and financial reporting among others. On the other hand, the Focus Groups address the needs of specific communities within the accountancy profession, including Professional Accountants in Business, Small and Medium-sized Practitioners and the younger members.

Maria Cauchi Delia, MIA Chief Executive Officer expressed her sincere appreciation towards the outgoing committee members who contributed significantly to the Institute's growth and success. She highlighted the extraordinary input of the committee members particularly by supporting the MIA in proactively putting forward recommendations and providing feedback for draft legislation as well as industry standards originating from Malta and abroad.

In their previous term which came to its conclusion at the end of last year, the committees and groups totalled in excess of 500 hours of meetings, producing several technical documents, contributing to over 25 events and replying to some 25 consultation documents.

She also extended a warm welcome to the new members within the Institute's committees, focus groups and working groups, acknowledging their commitment to the cause and emphasising the collective responsibility to drive positive change within the industry.

Among the key areas of work for the two years ahead, Ms Cauchi Delia highlighted the commitment of the Institute to continue contributing towards the new financial services strategy as part of the activity of the Malta Financial Services Advisory Council, as well as leading its members through new realities determined by changes such as sustainability reporting, changes in taxation, the advent of new international standards as well as the digital transition.

“Your willingness to offer your time and expertise speaks volumes about your passion for our shared mission. Working together we can bring tangible change, shaping the future of the accountancy profession in Malta," concluded Ms Cauchi Delia.

EFRAG issued the following 3 draft ESRS IG documents for public consultation:

• Draft EFRAG IG 1: Materiality assessment implementation guidance here;
• Draft EFRAG IG 2: Value chain implementation guidance here; and
• Draft EFRAG IG 3: Detailed ESRS datapoints implementation guidance here and accompanying explanatory note here.

MIA would like to invite its members to contribute to this consultation process by sending their feedback to technical@miamalta.org by 25 January 2024. Comments received will be taken into consideration when drawing up MIA’s consolidated feedback.

Read more here.

The MFSA has released a Consultation Document on the National Implementation of Regulation (EU) 2022/2554 and Transposition of Directive (EU) 2022/2556 on Digital Operational Resilience for the Financial Sector.

MIA would like to invite its members to contribute to this consultation process by sending their feedback to technical@miamalta.org by 30 January 2024. Comments received will be taken into consideration when drawing up MIA’s consolidated feedback.

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Businesses need to think innovatively and break conventional boundaries to remain competitive in the face of widespread changes, particularly in the field of taxation. This key message echoed through the key speeches and exchanges during the Malta Institute of Accountants’ Annual Tax Conference.

The Conference dissected various tax reforms emanating from both European and national level, including various elements of corporate tax, sustainability reporting disclosures as well as changes in VAT and Customs formalities. The agenda for the Conference was developed by the Institute’s Direct and Indirect Taxation Committees

In her welcome speech, MIA Chief Executive Officer Maria Cauchi Delia said that the present fiscal changes sought to lead a global shift towards transparency, simplification and consistency. She detailed the Institute’s efforts throughout the past year to engage with stakeholders in Malta and abroad, respond to consultation documents related to major reforms and provide training to members.

MIA President Mark Bugeja highlighted the stronger collective push towards enhanced compliance and enforcement. He called on accountancy professionals and businesses to take the upcoming changes in their stride and seek to transform such challenges into new opportunities for growth.

A number of panel discussions delved into detail and provided insights into impending changes related to direct and indirect taxation. With regards to indirect taxation, the panel addressed issues related to the Intrastat Declarations, Recap Statements, Budget Implementation Bill, Central Electronic System of Payment information (CESOP), and the applicability of the newly introduced 12% VAT Rate. The discussion on direct taxation focused on the Unshell Directive and its requirements, as well as on the Subject to Tax Rule (STTR), this being one of the key components of Pillar 2. A separate discussion addressed the expectations in terms of required documentation and timelines with regards to Transfer Pricing.

The Conference also included an insightful exchange on where tax related issues are likely to become relevant to disclosures under the Corporate Sustainability Reporting Directive (CSRD). This discussion addressed issues such as the Carbon Border Adjustment Mechanism (CBAM) and the Emissions Trading System (ETS), while also making reference to the Blue Economy and how this presents further opportunities for the country.

The event was also addressed by Mr Joseph Caruana, Commissioner for Tax and Customs, who provided details on the transformation of Malta’s fiscal systems, which had the objective of sustaining public financing through efficient collection of taxes while ensuring increased attractiveness and competitiveness of the Maltese jurisdiction through reduced bureaucracy.

Mr Christopher Magri, Director General Customs Operations, gave details of how Customs Department was investing in technology and Artificial Intelligence to allow it to focus on the highest risk and ensure collection of taxes and duties which are due, while enhancing its role as protector of the Maltese and European frontier.

The Tax Conference was also addressed by the Minister for Finance and Employment Hon. Clyde Caruana who urged firms to seek innovative ways to increase their productivity, this being the way forward in the way of constant changes pushed from the European Union and beyond. His Opposition counterpart, Hon. Jerome Caruana Cilia focused on the need to enhance and improve Malta’s attractiveness while demonstrating a commitment to fairness which ensures that local businesses, regardless of size or industry, have equal opportunities to thrive.