The Alleged Tax Evaders And Money Launderers Avoiding Prosecution Under Malta’s New Law

A growing number of individuals charged with tax evasion, money laundering, and fraud in Malta are avoiding criminal prosecution by entering into settlement agreements with the Tax Commissioner under a new legal framework introduced through Bill 142.

Under this framework, taxpayers may enter into agreements with the Commissioner for Tax and Customs to regularise tax offences by paying penalties and outstanding dues, thereby avoiding criminal prosecution for the offences covered by the settlement.

The mechanism also applies to certain “connected breaches” and predicate offences, linked to the tax offence, such as money laundering and fraud.

The bill was introduced and approved over 12 days in August 2025. It was tabled in Parliament on the same day as Bills 143 and 144, two parts of a controversial planning reform package that has since dominated public discourse and sparked protests. 

These are the known cases so far:

Christian Borg:

• A car dealer who was charged in a €1.6 million tax evasion and money laundering case.
• Prime Minister Robert Abela is his former legal advisor and once profited from a 2018 property deal with him.
• The agreement also covers his co-accused, Monique Mizzi and Joseph Camenzuli, a former Labour Party photographer.
• Borg has also been charged with kidnapping in a previous case.

Aron Mifsud Bonnici:

• A lawyer who was charged in a €1.6 million tax evasion and money laundering case.
• Mifsud Bonnici received over €2.4 million in payments into his personal bank accounts between 2016 and 2019. However, during those same four years, Mifsud Bonnici declared a total income of €680,000.
• He is a former advisor to Konrad Mizzi.
• He has been separately charged in connection with the Vitals Hospitals case.

Nigel and Mikaela Scerri

• Accountants behind Ennesse, who were charged with tax evasion and money laundering in connection with €1.5 million in tax and VAT discrepancies.
• €15 million in assets frozen across 15 companies.
• The court found sufficient prima facie evidence for them to stand trial in February 2025.

Potential impact on ongoing cases: The VAT Carousel

• Martin Farrugia and Henriette Cassar have been accused of defrauding the VAT system by approximately €62 million.
• The case involves multiple companies, including NCCF, MAM Construction Ltd, and MWF Construction Ltd.
• The accused have pleaded not guilty, and proceedings are ongoing.
• Amphora Media is informed that authorities are aware of additional businesses linked to the scheme. However, there have been no further prosecutions.

In reply to a series of parliamentary questions by MP Adrian Delia, Finance Minister Clyde Caruana confirmed that the Malta Tax and Customs Administration (MTCA) has received several applications under the new law and is currently processing them.

Caruana did not say whether any fines or sanctions have yet been imposed. He also declined to provide figures on the number of individuals or companies involved, the size of those companies, or the types of businesses concerned, referring the questions to the relevant minister.

Malta already has a significant problem with uncollected taxes. Official figures show that as of 2024, Malta has accumulated over €8 billion in uncollected tax, €6.1 billion in VAT and €2 billion in other taxes.  The government has written off over €6.6 billion of that figure.

Meanwhile, the FATF had expressly noted how Malta’s ability to fight tax evasion was one of the reasons the country was placed on the grey list to begin with – and was one of the three requirements to get off it.