€1.5 million tax evasion, money laundering case dropped thanks to new law
Nigel and Mikaela Scerri were charged over €1.5m worth of discrepancies in tax and VAT payments
Court proceedings have been dropped against accountants charged in a €1.5 million tax evasion and money laundering case after they reached an out-of-court settlement with the tax authorities.
A court on Thursday declared proceedings extinguished, after the government implemented a law allowing out-of-court settlements for tax crimes.
Nigel and Mikaela Scerri, who are behind Ennesse, were arraigned last year and charged after an investigation found €1.5 million worth of discrepancies in tax and VAT payments.
Charges were also filed against the companies Ennesse, Nimik Ltd, Accountingwise Ltd, Davvero Ltd, Payrise Limited, NYG Ltd, Sopralific Ltd, Starseekers Ltd, Volando Ltd, Drivingforce Limited, Delvetro Ltd, Double Leisure Ltd, Obregado Ltd, Performante Ltd and Semprenoi Ltd.
They denied any wrongdoing.
Last month, lawyer Vincienne Vella, representing the tax department, presented a copy of the agreement entered into between the Scerri’s and the department.
The court, after having seen the agreement, the charges brought against the pair and their companies, converted itself from a Court of Magistrates as a Court of Criminal Inquiry to a Court of Judicature, and declared the proceedings extinguished.
During the criminal proceedings, police inspector Tonjoe Farrugia had testified about a raft of transactions that were carried out in 2016, which came from the 26 active bank accounts that the couple set up.
Some 19 of these accounts were based locally, while the rest were located in EU countries such as Germany, Belgium, and Lithuania.
Farrugia also explained every investment into property that the duo made, which amounted to around €12 million.
It had also transpired that the pair was able to pay back €400,000 and a €500,000 loan in three and eight months, respectively.
When spoken to by the police, the pair had said that they were able to pay for these properties from their savings.
The Scerri’s benefited from the same controversial law which allowed lawyer Aron Mifsud Bonnici, who is a close associate of ex-minister Konrad Mizzi, to walk free in a case where it was being alleged that he laundered over €1.4 million in funds linked to tax evasion.
Last year, the government introduced a law allowing people caught evading tax to reach an out-of-court settlement with the tax authorities, therefore avoiding criminal prosecution.
Under the law, people can settle their tax dues with the tax authorities and pay a fine ranging from €10,000 to €1 million.
The law further extended to “connected breaches” linked to the tax offence, such as money laundering and fraud.
Magistrate Lara Lanfranco presided.
AG lawyers Rebekah Gatt and Andrea Zammit prosecuted.
Lawyers Joe Giglio and Michaela Giglio appeared for the accused.