Energy minister Konrad Mizzi has continued to doggedly defend his decision to set up a trust in New Zealand – which in turn owns a company in the notorious tax haven of Panama.

Asked by the Times of Malta if he was comfortable being associated with a tax haven, Dr Mizzi deflected the question by saying that the trust was registered in New Zealand.

“I am not being associated with a tax haven; I have got a trust in New Zealand. There is going to be full disclosure and I will pay all my taxes. You can on an annual basis go to Parliament, view my [ministerial] declaration of assets and see any movements there will be in the trust,” Dr Mizzi said.

As long as I provide full disclosure I have nothing to apologise for. It is my money which I worked for; it is my property which I worked for

Dr Mizzi was unable to provide the name of the Panamanian company when asked to do so by this paper.

He said the company in question was not owned by himself but by the New Zealand trust.

Asked who the beneficial owner of the Panamanian company was, Dr Mizzi said he was the ultimate owner as he was the protector of the trust, while his wife and two children are its beneficiaries.

The Energy Minister said he chose to base the trust and company in different jurisdictions on the advice of his financial planners.

“They advised that Panama would be a good place to hold the assets. The assets would be the property in England and potentially the one I have in Malta.”

Dr Mizzi said the Panamanian shell company was taken over by the trust in the summer of 2015.

He slammed allegations that he was hiding foreign bank accounts.

“The Panamanian company has no assets or liabilities. Allegations that I have accounts apart from those declared are false. The trust was set up in New Zealand and its only asset is a shell company in Panama – which has no assets. I will in time populate it with assets on the basis of advice I receive.”

The energy minister adamantly declared that he has nothing to be sorry for.

“As long as I provide full disclosure I have nothing to apologise for. It is my money which I worked for; it is my property which I worked for. We have every right as a family to decide where we locate it as long as I abide by the law and pay taxes.”

Sai Mizzi to relinquish role

Sai Mizzi will not continue in her role in China once her contract expires in August, her husband Konrad Mizzi announced yesterday.

Mrs Mizzi has been at the heart of controversy ever since she was appointed as special government envoy to China with a monthly package estimated to be worth €13,000.

Dr Mizzi made the announcement after his election as PL deputy leader for party affairs yesterday evening.

He said he had consulted Mrs Mizzi before deciding to submit his nomination for PL deputy leader.

They had also decided that given his new role, as well as his greater role in government overseeing projects including the area she was responsible for, she should relinquish her role.

Why is Panama a ‘tax haven’?

According to the latest issue of the Global Corruption Index by Transparency International, Panama is the 14th most secretive financial jurisdiction in the world.

Last June, the European Commission added Panama to its blacklist of countries designated as tax havens over the lack of support for anti-tax fraud and evasion efforts.

The blacklist consists of 30 countries and territories, mostly in the Caribbean.

According to international taxation specialists, the Republic of Panama is considered to be one of the most well-established pure tax havens in the Caribbean due to extensive legislation that strictly regulates the country’s offshore jurisdiction and financial services.

Services offered to foreign nationals by the Panama jurisdiction include offshore banking, the incorporation of offshore companies and formation of Panama trusts and foundations.

There are no taxes imposed on offshore companies that only engage in business outside the jurisdiction.

Secrecy and privacy are one of the most important ‘selling’ points of Panama’s jurisdiction. Strict confidentiality laws and regulations apply to documentation of offshore companies, trusts and foundations.

The names of corporate shareholders are not required to be publicly registered while banks are prohibited from sharing any information about offshore bank accounts or account holders.

Panama has no tax treaties with other countries, further protecting the financial privacy of clients who are citizens of other countries.