Issue link: https://maltatoday.uberflip.com/i/467065
maltatoday, SUNDAY, 22 FEBRUARY 2015 3 News Bold Busuttil warns MPs he will sack tax dodgers MPs suggest Falzon merely 'sacrificial lamb' CONTINUED PAGE 1 SWISS bank account holders have been the focus of intense media in- vestigation since a leaked clients' list of Geneva's HSBC Banque Privée that was given to French police in 2008 by whistleblower Hervé Fal- ciani, was published by the Interna- tional Consortium for Investigative Journalists. Falzon issued a statement on Sat- urday at 2:46pm, before the Malta Independent published its story. The newspaper followed up by publish- ing a recording of its first telephonic conversation with Falzon, which recording was not carried out with Falzon's expressed consent, Malta- Today was told. Falzon said that between 1975 and 1985, he was involved with other Maltese professionals in an architec- tural and civil engineering consul- tancy providing services abroad. The services were provided under the ae- gis of a Maltese-registered company, of which he was a shareholder and director. "The first big job that this company worked on had been entrusted to it in partnership with a Swiss architec- tural firm. This necessitated frequent visits to Switzerland and the opening of bank accounts to which funds were effected by the Swiss partners and eventually to the Maltese com- pany," Falzon said. "When the company was liqui- dated, and considering the political situation in Malta in 1985-87, I de- cided to retain a Swiss account in my name," Falzon added, who later went on to be elected on the Nationalist ticket and be appointed a minister. Falzon was a minister up until 1996. He told MaltaToday he repat- riated the money some time before 2008. "I want to make it clear that the money came from payments for pro- fessional activities abroad for foreign clients that were carried out before I became a minister in 1987 and that no moneys originating from Malta or from third parties were ever de- posited in this account. In fact, I had no other foreign accounts." Falzon said that in 2002 he decid- ed to transfer the account to HSBC Genève and some six years later the money was again transferred to an- other bank. "Eventually all the money in the ac- count was repatriated to Malta and today I have no money deposited in any Swiss bank or any other foreign bank whatsoever. My fiscal position in Malta has long ago been regular- ised. "Although it is evident that the said account has no connection whatso- ever with my past political activities, I have decided to suspend myself for the time being from all the political activities within the structure of the PN. For the time being, I am also withdrawing from my position as observer on the Oil Procurement Committee." CONTINUED FROM PAGE 1 Michael Falzon was contacted on Wednes- day by The Malta Independent over whether he had a Swiss bank ac- count: recently elected on the PN's executive committee, Falzon re- signed his post on admitting having held as much as €465,000 in a bank account at HSBC Privée in Geneva. He announced his decision in the afternoon yesterday before the newspaper went public with an unauthorised recording of the tel- ephone interview. Falzon said he would resign both his PN executive role and his position on the govern- ment's oil procurement commit- tee. "Shadow ministers were can- didly asked by the party's top brass whether they were holding any cash overseas," the MPs told Malta- Today, on condition of anonymity, when MaltaToday yesterday made its own inquiries with Nationalist MPs over the Falzon resignation. "Falzon obviously was not fore- warned," one MP said, who added as an aside that any suspension of PN officials on tax avoidance would still have to be heard before the PN executive. Michael Falzon yesterday told MaltaToday he repatriated his cash to Malta some time before 2008. Opposition leader Simon Busuttil issued a strong statement yesterday he would suspend any PN official that holding undeclared cash in an overseas bank account. But he also told MaltaToday that he was not privy to any information on any such officials who held undeclared cash overseas. "It is incumbent on anyone who might have such accounts to come clean and make their position clear. What I have done over the past weeks and also today is to explain my position on those who might have such accounts." MATTHEW VELLA OPPOSITION leader Simon Bu- suttil yesterday came out in full force to declare he would suspend any PN officials who held undeclared cash in a Swiss bank account. Following news that Michael Falzon had resigned his position on the PN's executive committee, Busuttil said that anyone who held undeclared monies in private Swiss bank ac- counts should come clean and carry responsibility. "As I have stated a number of times over the past days, I do not consider it acceptable for people in public office or in political positions to be among those involved in this scandal," Bu- suttil said, referring to the 'Swissleaks' revelations that made the news this past week. It is unclear whether Michael Fal- zon's name appears on a list of HSBC Banque Privée Suisse clients hand- ed to the French police in 2006 by whistleblower Hervé Falciani. A selective list of people were pub- lished by several European newspa- pers seeking answers over unpaid tax on undeclared monies held in the Swiss HSBC accounts. "People in public office or in politi- cal positions caught up in this scandal – whoever they may be – must come clean and carry their responsibility at law," Busuttil said. "Furthermore, if any person on these lists has any of- ficial connection with the Nationalist Party he or she should consider him- self or herself suspended immediately from the Party." Falzon said he repatriated his money before 2008, under one of sev- eral 'amnesties' for the repatriation of overseas monies under Nationalist administrations. Busuttil said that if anyone breached any tax laws, they should come clean and carry responsibility for their be- haviour, and that if any funds in Swiss banks are due in any way to an abuse of any official position they should pay for their betrayal of public trust "to the fullest extent possible". Busuttil has told MaltaToday he is not privy to any information of any PN officials or former ministers with monies in Swiss bank accounts. "It is incumbent on anyone who might have such accounts to come clean and make their position clear. What I have done over the past weeks is ex- plain my position on those that might have such accounts." Referring to former Nationalist Minister Michael Falzon Dr Busuttil said: "I note that Mr Falzon has stated that there is no connection with his past political activities. I note also that he has suspended himself for the time being from political activities within the PN and from his position on the Oil Procurement Committee. Nevertheless, his suspension from the party itself must be considered as having immediate effect. His position on the oil public procurement com- mittee – as the appointee of Prime Minister Joseph Muscat – has also become untenable." Government reaction The government said it had asked any media house with details on pos- sible Maltese tax dodgers who banked with the HSBC Swiss private bank to pass on the names, with full protec- tion for their sources, so that the po- lice can investigate. "We have already made a request to the competent authorities to pass on this information to our tax authori- ties," the government added in its statement. Tax amnesties and repatriation Malta's most recent 'amnesty' for undeclared cash in overseas accounts was Labour's investment registration scheme. The Investment Registration Scheme attracted a total of 1,469 valid registrations covering a total of €455.8 million worth of eligible as- sets. Of the total amount registered, €69.8 million or 15% of the total was repatriated following registration. After netting out the commission payable to registration agents, the government received €32 million in registration fees. A tax amnesty for defaulters launched in September 2009 had on- ly netted €2.57 million in payments in three months, a far cry from expec- tations that the amnesty would go some way into cutting €600 million in tax arrears. The scheme offers a 90% reduction on the fines and accrued interest on tax owed to the Inland Revenue De- partment. Defaulters had to pay the reduced amount in full and give up any objections or claims against the department. Former minister declared €465,000 cash under repatriation amnesty Michael Falzon – no money today in any Swiss or other foreign bank