16 Taxpayers Pay €34.2 Million Under Settlement Scheme That Rules Out Criminal Prosecution

Malta has entered into 11 settlement agreements with 16 taxpayers under a new legal mechanism that absolves alleged tax evaders of all criminal liability for tax crimes and connected charges.

In reply to a parliamentary question from MP Graham Bencini, Finance Minister Clyde Caruana revealed that the agreements will bring in €34,230,949 in taxes, alongside a further €3,044,161 in additional penalties imposed under a progressive rate schedule (15%, 20% or 25%, depending on the amount of tax owed).

The 11 agreements include both individuals and companies. No details were given on the individuals or entities that benefited from the mechanism.

As of 15 April 2026, 7 of the 11 agreements have been settled in full; two will be paid within six months, one within nine months, and another is subject to a structured payment programme spanning 12 years.

Caruana said that no tax or additional penalty imposed under the Act had been reduced. However, where taxpayers were eligible, partial remission of administrative penalties and interest was granted in line with existing policies.

Under the framework, introduced through Bill 142, 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 within 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.

Amphora Media has documented several high-profile beneficiaries of the mechanism, including: Christian Borg, a car dealer with ties to Prime Minister Robert Abela, charged in a €1.4 million tax evasion and money laundering case; Aron Mifsud Bonnici, a lawyer and former advisor to Konrad Mizzi, charged in a €1.6 million case and separately facing charges in the Vitals Hospitals case; and Nigel and Mikaela Scerri, the accountants behind the firm Ennesse, who were arraigned in January 2025 after authorities reportedly discovered a €1.5 million discrepancy in their tax and VAT declarations.

It is unclear whether the mechanism has been extended to any individuals or entities linked to the major tax fraud investigation involving a VAT carousel.

In 2023, it was reported that Martin Farrugia and Henriette Cassar were accused of defrauding the VAT system, allegedly to the tune of around €62 million.

The investigation, known as Operation Panthera, reportedly covers the period 2012–2019 and encompasses companies linked to the contractor — including NCCF, MAM Construction Ltd, and MWF Construction Ltd — which are said to have under-declared substantial sales and VAT payable.

The pair have pleaded not guilty, and the case is ongoing. 

Amphora Media has been informed that the police are aware of businesses involved in the scheme.