The pair, who are accountants behind the firm Ennesse,  were arraigned in January 2025 after authorities reportedly discovered a €1.5 million discrepancy in their tax and VAT declarations. 

Around €15 million of their assets – spread across 15 companies – were placed under a freeze order, while a court reportedly declared there was enough prima facie evidence for them to stand trial in February 2025.

Nigel and Mikaela Scerri chose not to comment on the outcome when contacted by Amphora Media.

The Scerris are the latest to make use of a new legal mechanism introduced under Bill 142. These include: Christian Borg, a car dealer with ties to Prime Minister Robert Abela, charged in a  €1.4 million tax evasion and money laundering case; and Aron Mifsud Bonnici, a lawyer and former advisor of Konrad Mizzi, charged in a 1.6 million case and who is separately facing charges in the Vitals Hospitals 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.

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.

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.

On 11th August 2025, Malta quietly adopted Bill 142, a piece of legislation that fundamentally rewires how the Maltese State treats tax crime and everything that flows from it.

The law does not decriminalise tax evasion on paper. Instead, it introduces a “special mechanism for out-of-court settlements” that allows tax evaders to resolve fiscal breaches without criminal prosecution.

Crucially, the mechanism does not stop at tax offences. It extends to so-called “connected breaches” – meaning crimes committed alongside tax evasion, including money laundering, fraud and conspiracy.

In practice, this means that individuals accused of multiple financial crimes can resolve all of them through administrative settlement, avoiding criminal prosecution entirely.

“This bill is going to ruin the country,” a tax consultant told Amphora Media. 

The mechanism 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. 

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. 

Amphora Media has sent questions to MTCA Commissioner Joseph Caruana for further clarification on the figures.

Under the Bill 142 mechanism, available under certain conditions, taxpayers or companies who reach a settlement with the tax authorities may have their criminal liability for certain tax breaches extinguished after paying outstanding dues and an additional penalty ranging from €10,000 to €1,000,000.  

In return, settlement agreements will constitute an “executive title” allowing direct enforcement, while resolving and terminating related court proceedings. 

Under the settlement mechanism, once the taxpayer pays the agreed amounts, all criminal liability for the covered breaches and related connected breaches is extinguished, and any ongoing prosecutions are effectively terminated.

The changes apply to all forms of tax: Income Tax, VAT, Social Security, and Duties.

The Act also explicitly allows the Commissioner to recognise agreements entered into before the law came into force.

Connected Breaches: The Law Extends Beyond Tax Crime To Other Serious Offences

Crucially, the mechanism covers all breaches of tax laws and all “connected breaches”, that is, any criminal offences committed while breaching tax laws. 

The Act defines “connected breaches” and covers offences committed to facilitate, conceal, or profit from tax crimes, including acts forming part of a pre-concerted plan or involving the use of criminal proceeds. 

For example, a person who commits money laundering and fraud in pursuit of a tax crime can avoid criminal prosecution for all three charges. It would even extend to conspiracy and other serious crimes.

This is despite a national strategy (2021-2023) promising that “The legislative AML/CFT/CPF framework will be constantly updated to ensure adherence with international (FATF and European) standards, as well as other best practices worldwide”.

The law contains a narrow exclusion, providing that “connected breaches” do not include offences listed under Subtitle IV of Title III of the Criminal Code. 

These include offences relating to abuse of public authority, unlawful exaction, extortion and bribery, abuses committed by advocates and legal procurators, malversation by public officers and servants, prison-related abuses, refusal of a lawfully due service, and breaches of duties associated with public office.

Offences typically associated with tax evasion, fraud, and financial misconduct remain eligible for settlement.

Under the new mechanism, limitation periods for both tax offences and connected crimes are suspended while settlement negotiations are ongoing. During this period, no prosecution may be initiated.

Under articles 187A and 187B, the amendments do criminalise breaches of government settlement agreements, with potential imprisonment and further fines (limited to €2.5 million and €500,000, respectively).

However, more consequentially, article 187C stipulates that these offences can only be prosecuted following a complaint by the Commissioner.

Bill 142: A major tax reform rushed through parliament in 12 days

In its official “Objects and Reasons”, the government framed Bill 142 as a measure designed to strengthen investigative powers, improve tax recovery, and deter financial crime.

It claimed the new settlement mechanism would impose penalties comparable to those applicable in criminal proceedings, while enhancing the state’s ability to collect outstanding dues.

The law moved through Parliament in 12 days. Its first reading was held on 23 July 2025, and on 4th August, it passed its second reading, committee stage, third reading and final vote in a single day. All 38 government MPs supported the bill, while 28 members voted against it.

Bill 142 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. While those bills remain at the first reading stage, Bill 142 was approved and assented into law by 11th August.

Bill 142 implications: The lawyer, the VAT carousel, and the tax advisors

The law is already leaving its mark.

In September 2025, lawyer Aron Mifsud Bonnici informed the courts that he would be exploring the legal amendments enacted under Bill 142 in his case, in which he stands accused of money laundering, tax evasion, and making false declarations in documents prepared for the Malta Tax and Customs Administration (MTCA).

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.

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 reviewed by Times of Malta indicated that 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.

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 a legal advisor in former Prime Minister Joseph Muscat’s government; as an advisor in the Ministry for Energy under Konrad Mizzi, where he participated in discussions on the Montenegro Wind Farm Project; as the board secretary at Enemalta; and as a member of the Grievances Board at Transport Malta.

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.

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. 

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.

Amphora Media has reached out to the police over the issue, but they have not responded.

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.

Malta’s High-Risk Industries

A 2023 National Risk Assessment (NRA) on money laundering, referenced in the Parliament in February 2026, revealed that several key sectors remain vulnerable to financial crime despite enhanced regulatory controls.

It evaluated industries in the Financial Sector, Designated Non-Financial Businesses and Professions (DNFBPs), and Virtual Financial Asset Service Providers (VFASPs) based on three factors: 

• Inherent risk: how vulnerable the sector is by nature,
• Effectiveness of mitigating measures: how strong the controls and supervision are,
• Residual risk level: the remaining risk after controls are applied.

Most sectors fell within the medium-to-medium-high residual risk range. Strong controls (rated “High” or “Substantial”) reduce risk in many areas. However, in several industries, the risk level means they still require close monitoring, and some sectors remain vulnerable to money laundering and financial abuse.

Financial Institutions, Recognition Notice Framework, Corporate Service Providers (CSPs), Real Estate (Immovable Property), High-Value Goods Dealers, and Tax Advisors also fell under the medium-high risk residual risk category.

The Finance Ministry, MTCA, the Attorney General’s Office, Aron Mifsud Bonnici, Martin Farrugia, and Henriette Cassar did not respond for request for comment.

• Tax revenues in Malta more than doubled between 2013 and 2023, rising from €2.5 billion to €5.6 billion, largely due to population and migration growth.
• Personal income tax and social security contributions both nearly doubled over the decade, yet local council funding remains below 0.8% of total tax revenues.
• Despite the population growth, investment in public services has lagged, particularly in healthcare, childcare, and local infrastructure.
• Foreign patients account for over one in eight hospital users, yet legal and administrative barriers persist.
• Childcare services are unevenly distributed, with areas such as St. Paul’s Bay, Sliema, and Marsa underserved, despite having large migrant populations.
• Government funding for after-school programs was reduced by half in 2024.
• NGOs fill widening service gaps by offering healthcare, legal, and integration support, but they face unstable funding and limited government backing.

Taking benefits, using free public services, exploiting tax breaks – a 2023 study shows these are the accusations most often levelled at migrants on social media in Malta.

A cross-border investigation by Amphora Media and our partner Público in Spain reveals that weak government investment in public services – for both citizens and foreigners – fuels tensions over quality and accessibility, rather than migration itself or the tax revenue migrants contribute.

Amphora Media examined key services in localities, many of which border each other, that have experienced significant increases in their foreign population. 

Check out all the numbers behind migration and population in Malta over here.

Malta’s Tax Revenues Soar Amid Population Boom

Malta is one of the EU’s fastest-growing economies, with the second-highest employment rate and the lowest unemployment rate in the EU. Still, a 2021 survey showed that nearly half of Maltese respondents viewed migrants as a greater burden than a benefit, and a quarter attributed low wages to migrants.

Malta’s tax revenues have increased significantly over the past decade, coinciding with population growth and migration. Between 2013 and 2023, revenues more than doubled from around €2.5 billion to €5.6 billion.

Between 2013 and 2023, revenue from personal income tax — paid by both Maltese and foreign residents — increased by nearly €1 billion, a rise of approximately 190%.

In 2023 alone, households contributed €1.5 billion, or almost two-thirds of all income tax collected.

Employee social security contributions, which cover pensions and other benefits, also more than doubled, climbing from €200 million in 2013 to more than €447 million in 2023.

Average monthly salaries rose from about €1,335 in 2013 to €2,125 in 2025.

Yet, investment in local councils, which are often on the front lines of population transformation and the tensions that come with it, remains limited.

The 2024 budget for local councils was slightly above €48 million across 68 localities. That’s around 0.8% of the total tax revenues generated.

Healthcare: who pays?

A survey found that most Maltese people see a high concentration of immigrants as an obstacle to integration. Yet only a third, the lowest share in the EU, viewed limited access to healthcare, education, and social services in the same way.

Approximately €73 million is allocated for primary health care and community services. At the same time, hospitals such as Mater Dei, Mount Carmel, Gozo General, Karin Grech, and St. Vincent de Paul collectively receive €265 million. 

Combined, this represents roughly a quarter of the Health Ministry’s budget and 6% of total tax revenues. 

Data shows that the number of Maltese citizens visiting Mater Dei has grown, and visits to health centres have fluctuated since 2020.

Malta has one of the highest out-of-pocket spending rates in the EU. In 2024, Researchers say that despite this, the share of unmet needs is low. 

This includes the migrant population. An EU dashboard shows that Maltese citizens are more likely to consider their health bad or report a long-standing illness. 

The latest Migrant Integration Policy Index states that “healthcare entitlements remain discretionary, and documentation and administrative barriers continue to pose challenges”, making the system “halfway favourable” to migrants. 

According to a 2024 report by the European Observatory for Health Systems and Policies, Malta has fewer acute care beds and less specialised equipment than several other Mediterranean countries and fewer than in 2022. At the beginning of 2023, the pain clinic had a waiting list of over 200 people.

Foreign residents constituted more than one in eight patients at the main hospital in 2023 and one in six users of the health centre.

Their number has more than doubled since 2020, but is still below the share of the foreign population in Malta, which was 29% in 2024.  A report warns that mental healthcare for migrant and refugee populations is “a major concern”.

Legal changes introduced in 2024 require many non-EU nationals applying for employment, family reunification, or studying outside recognised public institutions to obtain private health insurance with at least €100,000 coverage. However, students at Malta’s public universities and institutes are exempt from this requirement.

Between 2022 and 2023, hospital revenues from paid fees increased by more than 100%. In 2024, the hospital received €1,323,284.36 from third-country nationals.

“What we find with healthcare, and particularly in the last couple of years, is that things have really kind of stepped up in terms of payments, cracking down on making sure that people are charged and people’s documents are checked very thoroughly,” says Beth Cachia, research and advocacy coordinator at Jesuit Refugee Service, which helps refugees and asylum seekers navigate bureaucracy.

In 2024, the NGO helped 53 individuals with healthcare needs. Cachia warns of “ instances of people, even with a refugee status, turned away” despite healthcare falling under the protection of asylum seekers.

Umayma Elamin Amer Elamin, the founder and president of Migrant Women Association Malta, detailed how migrant women face similar challenges:

“Sometimes they get all the medicine, sometimes she will need to buy it herself. Sometimes, if they have an operation or an illness, they may need to wait. When it comes to communication, I feel translation is also a big issue,” she said, making particular reference to STD screening.

Gaps in Primary Care

Although the government claims that primary health centres are strategically located, St Paul’s Bay, with a total population of 35,000 (almost 60% foreign), does not have one.

Neither do Sliema and St Julian’s, which, with a combined population of more than 34,000, must use Gżira’s. Marsa (part of the Southern Harbour, where most migrants are non-European) also lacks a healthcare centre. 

2024 data shows that Mosta Healthcare Centre, which has a large catchment area, handled the largest number of emergency visits.

Paola, which had the second-highest number of emergency visits and covers several southern localities, including Marsaskala and Birżebbuġa, topped the list by the total number of patients. 

Caring for the youngest

Free childcare is provided to working or studying parents not on parental leave. Foreigners working in Malta are eligible too.

The distribution of these vital facilities did not mirror the population:

• In Gozo, only Victoria had childcare centres available from the localities included in this analysis.
• In the South, Birzebbuga had two childcare centres and Marsaskala had four.
• The much less populous Pieta’ and Gżira had five and six, respectively.
• The populous St Paul’s Bay only had two.
• In Sliema, where the majority of pupils at schools are foreign, there are only two childcare centres for younger children.
• St Julian’s is a smaller locality than Sliema, but there are three childcare centres.

Parents in full-time employment can place their children in after-school centres. The government considers that the introduction of free childcare, including for school-aged children, is behind Malta’s success in raising female employment rates.

As of early 2024, the 3–16 centres in Sliema and St Paul’s Bay had waiting lists of 25 and 28 children, respectively.

According to the 2024 financial estimates, the government reduced funding for after-school clubs by almost half, from €9 million to an estimated €4.8 million, between 2023 and 2024.

For migrant mothers without established family networks, access to childcare can significantly impact their employment prospects.

“I can confirm this is the big challenge for a woman, to have access to the labour market and to get enough funds to live easily in Malta. I can see the majority of our beneficiaries have this problem,” says Elamin. “Sometimes they can’t work, for example, because of their situation or maybe because they are married and they have children, or they don’t have access to services that can help them to work with their children.”

The Expats Malta Facebook community also guides its members who seek better schooling for their children.

“If you’re a typical family, it’s fine, no problem. You move to a village, you’re in the catchment area for a school, and that’s where your child goes. But if you come as a single parent, they’ll ask: do you have a letter of authorisation from the other parent? Even if you have full custody. It’s all these small things where the right information is just missing,” one of its administrators, Tom Erik Skjønsberg, says.

NGOs stepping up without public investment 

NGOs, such as the Migrant Women Association Malta, and communities attempt to fill the gaps left by state authorities. The association has begun incorporating social services into its training and entrepreneurship portfolio. 

 “We have become like one of the organisations that have a social service directly to the asylum seeker, refugee, and migrant woman. But specifically those affected by poverty and sexual gender based violence,” says its founder, Umayma Elamin Amer Elamin.

Since last year, JRS Malta, where Beth Cachia works, is partnering with aditus Foundation and Migrant Women Association Malta to jointly provide legal, psychological and social work services, cultural mediation, and basic integration support services to vulnerable individuals.

However, without sustained funding, it can be difficult to maintain.

“We had something before. We used to study Maltese, English and some arts as well. Computers too. But because of COVID-19, we closed and we didn’t open it again,” Mohamed Ibrahim from the Sudanese community told Amphora Media.

“Unfortunately, we didn’t [find government support]. We used to collect money to pay the rent and we had to close it. We didn’t even try find a place for us because the support there once was lost.”

This investigation was developed with the support of Journalismfund Europe.