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.

For years, the number of money-laundering prosecutions in Malta remained relatively modest. Figures tabled in parliament by Jonathan Attard, in response to questions from Adrian Delia, show that in 2018, only 12 individuals were charged, rising slightly to 14 in 2019. 

By 2024, however, that number had surged to 116 individuals across 44 cases – the highest level on record. In 2025, the figure dropped, falling to 61 individuals across 37 cases.

The shift came after Malta was placed on the FATF grey list in June 2021. Malta was removed from the list in June 2022 following rapid reforms. The FATF’s recommendations focused on the transparency of ultimate beneficial owners (UBOs), the effectiveness of anti-money laundering controls, and tax evasion investigations.

In 2020, standalone money-laundering cases were more common (27). However, cases accompanied by a predicate offence – which is the separate criminal act that generated the illicit funds – have increased. 

In 2021, cases accompanied by predicate offences were 87, up from just 1 in the previous year. By 2024, 114 cases were tied to predicate offences. In 2025, that number was 61. 

The Minister’s breakdown of predicate offences identifies fraud as the primary driver of money laundering proceedings, accounting for 77 instances.

This is followed closely by: Misappropriation (39), Aggravated drug possession (17), Corruption (13), Drug Trafficking (12), Tax Evasion (11) and Organised Crime (11).

Just as these complex, multi-charge cases peak, Malta has enacted Bill 142, which introduces a formal mechanism for out-of-court settlements for breaches of Malta’s tax laws and related crimes.

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.

So far, lawyer Aron Mifsud Bonnici, car dealer Christian Borg, and accountants Nigel and Mikaela Scerri have used the settlement mechanism in their respective million-euro tax-evasion and money-laundering proceedings.

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.

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 already being implemented. 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. 

This will apply to all the 11 cases of tax evasion listed – and a host of other ongoing cases, including a €62 million VAT carousel fraud case.

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.