Diplomat linked to €2 million ‘suspect payments’ wants tax deal

A diplomat linked to nearly €2 million in “suspicious payments” from Hong Kong wants a deal with tax authorities to kill money laundering and tax evasion charges against him. 

Aldo Cutajar, a former consul general to Shanghai, together with his wife Isabel, is looking to benefit from a new government law allowing certain criminal cases linked to tax evasion to be extinguished if the suspect reaches a settlement plan with the tax authorities. 

The couple’s legal team confirmed to a court last month that a settlement with the tax authorities was being sought. 

Investigators had alleged in court that the €2 million in payments could be linked to corruption in visa sales to Chinese nationals.

Rolex watches and cash

A police search at the couple’s home in 2020 had reportedly yielded several luxury items, including four Rolex watches and €544,955 in cash.

Police also found a list of names and passport numbers alongside cash at the couple’s home, leading to suspect that illicit profits were being generated through visa sales. Crimes connected to corruption offences do not qualify for settlement under the new law.

In comments to Times of Malta, the couple said they were never charged with corruption, and no evidence to support the corruption claims was ever presented by prosecutors. 

The Cutajars said the case, which started in 2020, eventually boiled down to contested tax evasion claims. 

Questions sent to the attorney general’s office went unanswered. 

Lawyer Aron Mifsud Bonnici and accountant Nigel Scerri have already walked away from money laundering and tax evasion charges under similar deals. Controversial car dealer Christian Borg has also reached a deal with tax authorities that could see him walk away from multi-million-euro money-laundering and tax fraud charges, thanks to the new law.

€2 million ‘interior design’ payments

The Cutajars were charged in August 2020 in connection with the suspect payments received from bank accounts in Hong Kong. They deny the charges. 

The €2 million in payments went to an interior design company in Cyprus owned by Isabel Cutajar, which held an account at the now-defunct Satabank. This account was funded by 69 payments received in the space of nine months from bank accounts in Hong Kong.

The bulk of the money received was used by the couple to buy a €1.6 million villa in Naxxar.  

When the Satabank account was opened, Isabel’s company, Gemini Design Studios Ltd, claimed to have five employees. 

The couple says the €2 million in payments were profits from the interior design consultancy business. 

Financial investigators, however, questioned how a company with just five employees was able to expand its operations overseas in such a short period of time. 

Further red flags were raised about the lack of business expenses being paid out from the Satabank account, like employee salaries, which would be necessary to sustain the company’s operations. 

Aldo Cutajar told Times of Malta that he has 25 years of experience in interior design, and he was the one who fostered business contacts and agreements with clients in Hong Kong. 

Cutajar, who was a political appointee, said a foreign office witness had confirmed to the courts that there was nothing wrong with him doing business in China as a public officer. 

“My wife was simply acting as bookkeeper. But that is a battle we will fight with MTCA with the competent auditors,” Cutajar said.