Senator Ron Wyden has requested detailed information from the Big Four accounting firms—KPMG, Deloitte, EY, and PwC—regarding their use of Malta to help U.S.-based multinational companies reduce tax liabilities. The inquiry follows a New York Times report revealing how companies like Crocs, Victoria’s Secret, Abbott Laboratories, and Thermo Fisher have established subsidiaries in Malta to exploit its near-zero corporate tax rate. These entities often operate from empty offices, shifting profits away from countries with real operations and customers.
The firms are accused of engineering complex tax schemes that leverage discrepancies between national tax laws. Wyden criticized the practice, stating that while working Americans pay taxes faithfully, corporate giants use offshore havens to avoid their fair share. The letter demands descriptions of Malta-related strategies, marketing materials, tax savings data, fees, and client numbers.
Malta, the EU’s smallest member, delayed implementing a global minimum corporate tax until 2029. The U.S. withdrawal from the international enforcement effort under President Trump has further increased Malta’s attractiveness. Public records show a 70% rise in Maltese subsidiaries set up by U.S. companies over the past three years.
Source: New York Times Business · Summarized by HeadlinesBriefing