The leaked tapes that show how the rich avoid taxes

The "Malta loophole" allows wealthy Americans to avoid significant capital gains taxes by stashing appreciated assets, such as stocks and real estate, into supercharged Maltese retirement accounts. Originating from a 2008 U.S.-Malta tax treaty intended to protect retirement savings, the arrangement was exploited to shield unlimited asset growth from IRS oversight. While former IRS lawyer Carolyn Schenk and the agency attempted to close this loophole by adding it to the "Dirty Dozen" list and clarifying treaty terms, a powerful coalition of tax professionals and lobbyists successfully resisted these efforts. The legal battle highlights the fluid, contested boundary between legal tax avoidance and illegal evasion, as regulatory attempts to force transparency through a "Come Clean" rule have stalled, leaving the future of this tax shelter uncertain under shifting political administrations.