PANAMAGATE: The Prime Minister lies at his press conference

I’ve just watched the footage of the Prime Minister’s press conference earlier today, again. At one point he says that his Health & Energy Minister has paid his fine already for not registering his trust with the tax authorities within 30 days. A few minutes later, he says “he will pay the fine”.

So which is the lie? Easy. That particular violation of the Income Tax Management Act is not a contravention but a crime. For a fine to come into play, there has to be a conviction. The Commissioner of Revenue has to report Konrad Mizzi to the police, the police then prosecute, and after several months (or years), he is either convicted and fined or found not guilty and not fined.

So the Minister for Health & Energy hasn’t paid his fine, the Prime Minister is lying about it, and the question the press should be asking is whether the Commissioner for Revenue has filed a report with the police, for prosecution.

The relevant part of the law follows below:

24B. Meta –

(a) is-settlor ta’ trust ikun persuna residenti f’Malta; u

(b) ebda wieħed mit-trustees ta’ dak it-trust ma jkun persuna residenti f’Malta; u

(ċ) il-proprjetà tkun tqiegħdet f’dik it-trust wara dik id-data li l-Ministru responsabbli għall-finanzi jista’ jistabbilixxi b’avviż fil-Gazzetta,

l-imsemmi settlor għandu jgħarraf lill-Kummissarju bil-proprjetà hekk mqiegħda fit-trust flimkien ma’ kopja, fejn applikabbli, tad-dokument tat-trust rilevanti jew ta’ xi dokument ieħor li jipprova l- eżistenza ta’ dak it-trust. Dan it-tagħrif għandu jingħata lill-Kummissarju mhux iktar tard minn tletin jum mid-data rilevanti tat-tqiegħid tal-proprjetà fit-trust.

Kull settlor li jonqos li jħares id-disposizzjonijiet ta’ dan l-artikolu jkun ħati ta’ reat u jeħel, meta jinsab ħati multa ta’ mhux inqas minn mija u sittax-il euro (116) u mhux iżjed minn elf u mija u sittin euro (1,160) u multa oħra ta’ mhux inqas minn erba’ euro (4) u mhux iżjed minn tlieta u għoxrin euro (23) għal kull jum li matulu jkompli r-reat wara li jgħaddu l- imsemmija tletin jum.

(…)

49. (1) Kull persuna li tikser jew tonqos li tħares xi waħda mid-disposizzjonijiet tal-Atti dwar it-Taxxi jew ta’ xi regoli magħmula bis-saħħa tagħhom tkun ħatja ta’ reat u, kemm-il darba ma jkunx hemm piena oħra speċifikata taħt l-Atti dwar it-Taxxi, teħel meta tinsab ħatja multa ta’ mhux inqas minn tlieta u għoxrin euro (23) u mhux iżjed minn mija u sittax-il euro (116).

(…)

56. Ebda kawża dwar reat taħt l-Atti dwar it-Taxxi ma tista’ tinbeda ħlief fuq it-talba jew bis-sensja tal-Kummissarju.