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.

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. 

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.