Magistrate Joe Mifsud is being audited by tax authorities over financial declarations which have raised suspicions he may have hidden wealth. 

Mifsud, who presides over both Maltese and Gozitan court sittings, was last month served with a formal notice by the Tax Compliance Unit informing him that he was the subject of an ongoing audit covering 2013 to 2015, the year he was first appointed to the bench. 

It is understood that the fiscal authorities are looking into how, despite having had a relatively small legal operation, Mifsud declared expenses that outstripped his earnings for three years in a row.

As a result, he declared a loss during this period. 

Sources within the audit said this had raised concerns that he had “hidden wealth” which he had not been declaring to the authorities. The audit team will soon begin a lifestyle review, comparing purchases and transactions by the magistrate with his financial declarations. 

Furthermore, Mifsud will be issued with official paperwork calling on him to declare tens of thousands of euros more in earnings. 

Contacted on Sarturday, Magistrate Mifsud declined to comment, citing the judiciary’s code of ethics.

Speaking on his behalf, his wife Maria Mifsud confirmed they had recently received a letter from the Tax Compliance Unit, informing them they are the subject of an audit.

Insisting that they both had nothing to hide, she said that she and her husband had previously run a small legal practice which they had shut down before Mifsud was appointed to the bench.

She added that, while this was “a private and administrative matter”, her husband had “never made millions” and if there were some dues to be settled, he would have no problem doing so. 

She also said that they would both be complying with the fiscal authorities to resolve the matter. Her husband had already settled some €10,000 due after being made magistrate, she added.

Court experts under scrutiny

Times of Malta is informed that the probe into Mifsud’s affairs is part of an initiative by the taxman to look into the assets of court experts. 

A source at the Inland Revenue Department said the review of other professionals appointed to act as court experts had so far turned up nothing of major interest, but the exercise is still under way. 

Mifsud, 53, became a lawyer 17 years ago. A former journalist, he had previously served as international secretary of the Labour Party, and has published several books on politics, crime and other related subjects.

He had acted as a court expert before his appointment to the bench.  

 

Magistrate Monica Vella, a former Labour mayor, has also been in the headlines recently over a relatively minor tax irregularity.

She was facing court action after failing to file a VAT return for work carried out before she was appointed magistrate, sparking an administrative investigation.

While charges were filed in court, she was due to be charged with the minor offence on July 23 before Magistrate Mifsud, presiding over the Gozo courts, but it did not happen as police had not yet notified her. 

She subsequently rectified her position by settling the pending amount, believed to have been around €300.

Shortcomings in Malta’s efforts to fight tax evasion was listed as one of the main reasons Malta was ‘greylisted’ by the FATF earlier this year. 

Malta has since signed a commitment with the FATF to bolster its fight against financial crime, including tax evasion.

Correction October 4, 2021: A previous version stated that the audit into Magistrate Mifsud forms part of a review of all members of the judiciary rather than court experts.  

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