A probe into allegations that overseas ‘secret’ financial vehicles were used to evade tax has been widened to include all individuals and companies mentioned so far in the Panama Papers.

Senior government officials have confirmed to the Times of Malta that the Inland Revenue Department, the Tax Compliance Unit and the Financial Intelligence Analyses Unit have opened separate inquiries in view of suspicion of financial rules violations and tax evasion.

The investigations involve both individuals mentioned in the Panama Papers as owning ‘secret’ companies in notorious tax havens as well as companies in Malta, including some connected with these same people.

Asked to confirm whether the Inland Revenue Department was looking into the possible shifting of profits by using companies in tax havens, a department spokesman pointed out that by law no information on such investigations could be given.

However, he told this news­paper that what is appearing in the Panama Papers was not being ignored. “We are following and taking note of all the information being made public on a daily basis,” the spokesman said.

The Panama Papers have so far exposed a number of Maltese individuals allegedly owning trading companies in tax havens

“The tax authorities can assure the Maltese public that it is taking all necessary action immediately and in accordance with the law where information is available in respect of individuals or companies who may be evading tax,” he added.

“The use of companies incorporated in tax havens, especially where fiduciaries/trustees are interposed, have always been viewed as high risk and are immediately investigated,” the spokesman noted.

The Panama Papers have so far exposed a number of Maltese individuals allegedly owning trading companies in tax havens.

The Prime Minister’s chief of staff, Keith Schembri, and Energy Minister Konrad Mizzi have admitted setting up trading companies in Panama.

Others were mentioned as having companies in the British Virgin Islands. These include Adrian Hillman, the former managing director of Allied Newspapers, Pierre Sladden, a contractor, and Malcolm Scerri, the last two business associates of Mr Schembri.

Earlier this week, it was also alleged that Brian Tonna, the managing partner of auditing firm Nexia BT, also owns a company in the British Virgin Islands.

Publicly available information indicates that Mr Tonna is the ultimate beneficiary owner of Willerby Trade Inc, incorporated in the British Virgin Islands.

According to the Panama Papers, the company is used as an agent to sell Maltese passports under the government’s individual investor programme.

Nexia BT has been mentioned as the financial adviser behind the setting up of companies in tax havens in connection with the Maltese individuals listed so far in the Panama Papers

Mr Tonna was asked to explain the use of his British Virgin Islands company and to state how many client applications he had submitted so far to obtain a Maltese passport, however, no replies were forthcoming.

His legal counsel, Henri Mizzi, communicated with this newspaper saying these were private matters and he should not be asked about them.

“My client struggles to see any public interest in his private affairs,” Dr Mizzi said. “While he can understand the press questioning his firm’s involvement in matters concerning public figures, he maintains that his right to privacy ought to be duly respected,” he added.

Mr Tonna was also asked whether he had declared his British Virgin Islands company to the Maltese tax authorities and whether he owned other companies and trusts abroad. Dr Mizzi said his client would not reply to such questions.

“Mr Tonna instructed me to say that his affairs are in order and that he reserves his rights in the event that, in any story you choose to publish, any assertion or insinuation to the contrary is made, however indirect,” Dr Mizzi said.

Mr Tonna was again asked about reports that he had a desk at the Office of the Prime Minster and was regularly at Castille. He replied he was not in a position to divulge information on his clients.

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