Aron Mifsud Bonnici Avoids Prosecution After Settlement in €1.6 Million Tax Evasion and Money Laundering Case

Lawyer Aron Mifsud Bonnici has avoided criminal prosecution after reaching a €1.6 million settlement with the authorities in a tax-evasion and money-laundering case, using a new legal mechanism introduced by Bill 142.

Lawyers close to the case informed Amphora Media that the settlement agreement was presented to the courts on 27th March, thereby extinguishing the current criminal proceedings against him. 

Mifsud Bonnici was accused of money laundering, tax evasion and making false declarations in documents prepared for the Malta Tax and Customs Administration (MTCA). In July 2025, a court declared that there was enough prima facie evidence for him to stand trial.

More than €1.6 million of Mifsud Bonnici’s assets were frozen in a court order as part of the case on 23rd July 2025.

Mifsud Bonnici is an associate of former minister Konrad Mizzi and is separately facing criminal charges related to the Vitals Hospital case. 

He served as legal advisor in former Prime Minister Joseph Muscat’s government, an advisor in the Ministry for Energy under Konrad Mizzi, which involved discussions on the Montenegro Wind Farm Project, was the board secretary at Enemalta, and was on the Grievances Board at Transport Malta.

According to a Times of Malta investigation, the probe into Mifsud Bonnici began following a series of large transfers worth €1.4 million to XNT Limited, a Malta-based investment firm.

Financial documents seen by Times of Malta indicated that Mifsud Bonnici received payments of over €2.4 million into his personal bank accounts between 2016 and 2019. However, during those same four years, Mifsud Bonnici declared a total income of €680,000.

A separate Times of Malta investigation also revealed how Aron Mifsud Bonnici and Robert Borg raked in over half a million euros in “dividends” and “directors’ fees” from two companies involved in the publicly funded community work scheme.

In the current case, Mifsud Bonnici used a formal mechanism for out-of-court settlements of breaches of Malta’s tax laws and related crimes, introduced by 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.

It is being implemented elsewhere. 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. 

The law could also have significant implications for a 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, but all have so far evaded prosecution. 

Amphora Media has reached out to the police over the issue.

In December 2025, Farrugia was approved a variation to his freezing order to transfer four leopards and four pumas to the Pafos Zoo in Cyprus.

Another case impacted by the legislation involves Nigel Scerri and his wife, Mikaela, the owners of a tax advisory and accountancy firm. The pair have been charged with money laundering, tax evasion, fraud, and other crimes, and are subject to a €15 million asset freeze.