Apparent differences in income declarations made by Konrad Mizzi in 2013 and 2014 “can be easily reconciled based on taxation rules”, according to the Energy Minister.

After a request to House Speaker Anġlu Farrugia last week, the Times of Malta was yesterday given access to information on the income Dr Mizzi and his wife, Sai, declared for income tax purposes in 2013 and 2014.

Comparing the ministerial declaration tabled in Parliament with the information on income declared by Dr Mizzi for the two years one would note the figures listed do not tally (see tables).

However, Dr Mizzi said one reason lay in the tax free allowances paid to ministers, which did not feature in the tax return but were included as income in the declarations to Parliament.

He also noted that tax on rental income from UK property was paid both in the UK and in Malta. “There is a difference between the tax computation for rental income and the rental income declared in the declaration of assets – the Income Tax Act in Malta restricts deductions in respect to rental income to 20 per cent irrespective of deductions incurred,” Dr Mizzi said.

His ministerial declarations do not include any information on his spouse’s income. However, his income tax returns show that Ms Mizzi Liang pays tax on a fraction of her revenue.

Soon after Labour’s return to power, Dr Mizzi’s wife took up residence in her native China after being appointed as Malta Enterprise’s envoy to Asia on the instructions of the Prime Minister. Residing in Shanghai, Ms Mizzi Liang was put on an ambassador’s salary scale with all expenses paid by the State, including her residence, transport and her children’s schooling.

According to her three-year contract, Ms Mizzi Liang was entitled to a financial package of about €13,000 a month. But according to diplomatic rules of engagement she was only obliged to pay tax on salary and not on allowances and perks.

The Mizzis’ income tax returns show that, while in 2013, Dr Mizzi’s spouse declared a gross income of €27,831, in 2014 she declared €34,052.

On 2014, when Dr Mizzi omitted to include his wife’s income, he told the Times of Malta he was not obliged to give any information about his spouse. “Ministers, not just in this legislature, are not asked to divulge their partner’s income.”

The income statements also shed light on the declared wealth of the family. They declared they co-own an apartment in Greater London, which, in 2014, generated €21,543 in rent and a Sliema apartment used as Dr Mizzi’s residence. Also, for 2014 the couple declared holding €310,000 in bank deposits against a loan of €329,000. Bank deposits rose by €47,000 over the previous year.

Experts in the business of trusts yesterday said the wealth declared by the minister and his wife did not justify the setting up of a trust and an associated trading company.

“We find the complex way chosen by Dr Mizzi to administer his family’s wealth as quite odd for the amount of wealth declared,” one expert said.

Dr Mizzi announced on Monday he would dissolve his Panama company but would retain his New Zealand trust.

Last night, former finance minister Tonio Fenech told Parliament that Dr Mizzi appeared to be in breach of the Income Tax Management Act because he seemed not to have declared the trust to the Commissioner of Inland Revenue.