Former Labour minister Joe Debono Grech failed to declare any income from his consultancy job at the Ministry for Gozo for the past two years, Times of Malta has learnt.

According to his income tax returns for 2014 and 2015, that were obtained by this newspaper, in terms of the income tax law provisions, Mr Debono Grech failed to declare his income from his 20-hour a week consultancy job for Anton Refalo.

In 2014, the 77-year-old fiery MP declared an income of €51,200, derived from his honoraria as an MP and from two pensions. The same happened in his 2015 declaration, in which he declared an annual income of €56,867.

Although Mr Debono Grech has been employed as a government consultant since February 2014, no income sourced from the position appears in his income tax declarations.

In 2014, when the Times of Malta first reported Mr Debono Grech’s part-time job as a government consultant, a spokesman for the Gozo Ministry said that he was receiving a salary of “under €12,000 annually”.

When pressed on whether he was actually evading tax, he said: ‘See my income tax returns’ and hung up

A few weeks ago, after being granted access to Mr Debono Grech’s contract by the Data Protection Commissioner after a refusal by the government, the Times of Malta discovered that, according to his recent contract (for 2015), Mr Debono Grech is not receiving a salary but instead is being paid in kind in the form of a fully expensed car and a driver.

Mr Debono Grech’s consultancy has so far been renewed every year through an annual contract.

Contacted about his income tax returns, Mr Debono Grech said he did not make comments to the media. However, when pressed on whether he was actually evading tax, Mr Debono Grech replied: “See my income tax returns” and hung up.

According to a tax expert, Mr Debono Grech is obliged to declare his income, even in kind, to the tax authorities and to pay due taxes. “It is no excuse that he may not be receiving any compensation in cash. The law is very clear that payment in kind and benefits are also fully taxable,” the expert said.

The veteran Labour MP, who has been elected to Parliament since 1976, served as a Cabinet member in the administrations of Dom Mintoff, Karmenu Mifsud Bonnici and Alfred Sant.

Mr Debono Grech has a summer residence in Gozo and is known to spend a lot of time on the island.

 

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