More than 200 Maltese taxpayers who featured in the Panama Papers leak were not investigated by the police because of legal obstacles that prevented the tax department from sharing information, according to the Finance Minister.

“The Inland Revenue Department had no authority to refer tax matters to the police because every tax evasion offence was considered solved once the imposed fine was paid,” Prof. Edward Scicluna said in parliament on Wednesday. 

The Finance Minister was reacting to a story published by the Times of Malta which outlined how 237 Maltese taxpayers got off the Panama Papers hook. 

Speaking during the debate on the Budget Measures Implementation Bill he said that the government was ironing out these legal obstacles.

Such matters had been flagged in 2012 by Moneyval under a Nationalist government, he noted.

Prof. Scicluna added that four cases were currently being investigated by the police following referral by the Inland Revenue Department. 

The minister said that a memorandum of understanding was recently signed between the police force and the department to facilitate the transfer of information.

He provided a breakdown on the course of action taken on both the Panama Papers and the Swiss leaks, whereby 121 cases were concluded and about 16 were still pending.

The sum of €5 million in tax was imposed in the cases related to the Panama Papers leak, while another €5.6 million was imposed on Swiss leaks cases.  

Moreover in 2018, the department investigated 1,363 cases from which €37 million in tax was recouped.  

Anti-money laundering directive

The Finance Minister admitted that Malta had not met the January 10 deadline to transpose what is known as the Fifth Money-Laundering Directive of the EU.

While blaming the Opposition for derailing the legislative process by boycotting a number of sittings held in December, he expressed confidence that this law, which is due to be debated at committee stage, would be enacted by next month.

Prof. Scicluna noted that the European Commission was expected to crack down on member states failing to transpose this directive as from February.  

He pointed out that certain measures, such as introducing a public register of the ultimate beneficial owners, had already been implemented.