The income declared in Konrad Mizzi’s latest available tax return did not justify his “elaborate” financial set-up in Panama and New Zealand, said an experienced financial practitioner working for a big four firm.
This paper was given access to Dr Mizzi’s latest available tax declaration following a request to the Speaker of the House of Representatives, Anġlu Farrugia, as provided by law.
In the year he set up a company in Panama sheltered by a trust in New Zealand, Dr Mizzi declared pre-tax income of €52,861 and a further €37,838 for his wife.
The financial practitioner, who preferred to remain anonymous, said the' Mizzis' declared income in 2015 in no way justified setting up a company in Panama and a trust in New Zealand.
A report earlier this year by the international NGO Global Witness said the fact that Dr Mizzi’s New Zealand trust was revocable undermined the core principle of trusts – to ensure that the assets were fully divested by the settlor (Dr Mizzi) into the trust.
This meant while Dr Mizzi’s wife and children were the beneficiaries of the trust, the minister could revoke it and take back the assets at any time, Global Witness said in their report.
Dr Mizzi has repeatedly insisted the Panama company was bought in order “to hold a London property” owned by his wife.
According to leaked e-mails and documentation sent by Dr Mizzi’s financial advisers Nexia BT, “there are no assets being put into it [the Panama company]”.
The documents formed part of the Panama Papers.
Further e-mails by Nexia BT sent in 2015 show they gave the go-ahead to open a bank account for Dr Mizzi, which would have required annual deposits of close to €1 million.
In that year, Dr Mizzi’s declared income together with that of his wife amounted to €90,699.
In his 2015 asset declaration to Parliament, he declared bank deposits of €389,440 and an outstanding loan of €322,167.20.
Prime Minister Joseph Muscat said on TVM’s Xtra Dr Mizzi would have had to resign had he not declared his Panama company.
The local tax authorities fined Dr Mizzi for failing to declare his New Zealand trust, in which his Panama company was sheltered.
Dr Muscat has said any decision on Dr Mizzi’s role in a future Labour government would de-pend on the election result.