Labour MP Glenn Bedingfield faced the threat of court action over €7,245 in unpaid taxes and penalties.
Speaking to Times of Malta, Bedingfield said he has since settled the pending tax dues.
He denied insinuations by PN paper In-Nazzjon that he had evaded taxes, saying that during the period in question, he had paid over €140,000 to the taxman.
"I have always been an employee who was taxed at source," Bedingfield said.
Bedingfield said the tax dispute had arisen from a "discrepancy" in the amounts deducted by his employer and the actual tax due.
A legal letter filed by the tax authorities in January shows Bedingfield was first warned about the unpaid tax dues in October 2019.
Back then, the tax authorities said Bedingfield owed income tax for the years 2011, 2012, 2015, 2017 and 2018.
Bedingfield was given 15 days to settle the unpaid taxes and resulting interest by then-tax commissioner Marvin Gaerty.
The MP, however, claims that he never received any notification from the tax authorities, only becoming aware of it when the legal letter was filed this year.
In 2011 and 2012, Bedingfield was a Labour Party employee. He became a government employee in 2013, when the PL swept to power. Since becoming an MP in 2017, has also received a parliamentary honorarium.
Finance Minister Clyde Caruana last year pledged to crack down on tax cheats, noting how tax dodging in Malta appears to be rife.
Caruana said the government can afford not to levy new taxes this year as the country has enough potential to generate the revenue it needs through existing taxes and tax rates.
“That means there is no need for any new taxes or an increase in the rate of existing taxes. But it also means we cannot tolerate those who do not pay what is due,” he said.
A number of Labour figures have recently been chased for unpaid taxes.
Former OPM chief of staff Keith Schembri owes €266,000 to the tax authorities for unpaid dues by a company he co-owns with his wife Josette.
Ex-PL MP Rosianne Cutajar has also faced accusations of tax dodging, having failed to declare income from a property deal she helped broker for murder suspect Yorgen Fenech.
Cutajar resigned from Labour’s parliamentary group in April over her relationship with Fenech.
Notary Ian Castaldi Paris decided not to re-contest the 2022 election on the Labour ticket, having been outed as owing the taxman €300,000 in taxes and penalties.
Opposition leader Bernard Grech has also faced accusations of tax dodging. Grech quietly settled his dues shortly before taking up the PN’s leadership in September 2020.