Christian Borg strikes deal that could end his multi-million tax fraud case

Car dealer Christian Borg has reached a deal with tax authorities that could see him walk away from multi-million-euro money-laundering and tax fraud charges, thanks to a new law passed by Robert Abela’s government last year.

The prime minister is a former legal advisor to Borg and profited from a 2018 property deal with him.

Borg's agreement with the tax authorities will see him settle his tax dues and pay a fine. The agreement covers Borg, his companies, and his co-accused, Monique Mizzi and former Labour Party photographer Joseph Camenzuli.

Details from the agreement concerning Mizzi and an associated company were heard in court on Friday, as similar charges against lawyer Aron Mifsud Bonnici were dropped.

Mifsud Bonnici, who served as former minister Konrad Mizzi's lawyer and was appointed to several government roles during Mizzi's time in power, was facing up to 18 years' imprisonment for allegedly laundering over €1.4 million in funds linked to tax evasion.   

Attorney General lawyer Francesco Refalo indicated discontent with the situation.

“We criticised both the law and the agreement,” the prosecutor told the court.

Borg and his co-accused are now awaiting a final decree from the court to extinguish the case based on the new law.

He and his companies were charged with evading income tax and VAT, making false declarations for tax purposes, defrauding the Tax Commissioner and making fraudulent gains to the detriment of the government. 

A court heard in 2024 how criminal investigations were triggered by a request by the VAT department after Borg allegedly filed invoices for “hundreds of thousands of euros” and claimed VAT refunds on amounts classified as expenses. 

Inspector Tonjoe Farrugia said the investigation concluded that millions had been defrauded to the detriment of the VAT department.

All involved deny wrongdoing.

A controversial law

Last year, Abela’s government pushed through a law allowing people caught evading tax to reach an out-of-court settlement with the tax authorities, therefore avoiding criminal prosecution. 

Abela, together with the rest of Labour’s MPs, voted in favour of the law while PN MPs voted against.

The law further extended to “connected breaches”, including money-laundering, as in the case against Borg.

Prime Minister Robert Abela is a past associate of Borg, having pocketed €45,000 from a property deal with the car dealer.

In June 2018, Abela and his wife Lydia entered a deal to buy a nondescript plot of land in Żabbar.

That very same day, Borg received Planning Authority permission to build nine apartments and garages on that plot of land, despite having no apparent connection to the property.

A few months later, the Abelas sold their stake in the property deal to Borg, making a €45,000 profit.

Abela, a lawyer by profession, was providing legal advice to both the PA and Borg at the time.

Borg is still facing separate charges for his alleged role in a kidnapping.