In response to questions submitted by WhosWho.mt regarding the case of two accountants charged with multiple financial crimes, including tax evasion amounting to €1.5 million, the Accountancy Board has clarified that it is waiting for the outcome of the court case before determining whether to strip said professionals of their warrant.

It also clarified that one of the two accountants in question is not warranted to begin with.

Reports on 26th January said that accountants behind the firm Ennesse, Nigel Scerri and Mikaela Scerri, have been charged with money laundering and tax evasion after an investigation uncovered discrepancies in tax and VAT payments amounting to €1.5 million.

WhosWho.mt reached out to the Accountancy Board to ask whether it has initiated any internal proceedings to review Mr and Ms Scerri’s status as warrant holders, what the standard process is in such cases where accountants face serious criminal charges, and what factors would be considered if a suspension is being evaluated. The board replied: "It is the Board’s understanding that the case you are referring to is under the remit of the courts of criminal judicature. In light of this, the Board is closely monitoring developments as the court case progresses to be in a position to act accordingly at the appropriate time."

This statement suggests that while the Board is not taking immediate disciplinary action, it is prepared to intervene based on the legal outcome. Essentially, the Board is maintaining a neutral stance while respecting judicial proceedings, ensuring that any necessary measures will be taken only once a verdict is reached.

Additionally, the Board clarified that Ms Scerri is not a warrant holder.

However, when asked whether Mr Scerri can still practice as an accountant in the meantime, the Board reiterated the principle of the presumption of innocence until proven guilty. This effectively suggests that Mr Scerri will continue to be allowed to provide professional services pending the outcome of the court case.

The case

Appearing before Magistrate Rachel Montebello, Ms and Mr Scerri were accused of multiple financial crimes, including providing false documents to the Tax Commissioner. The companies Ennesse, Nimik Ltd, Accountingwise Ltd, Davvero Ltd, Payrise Limited, NYG Ltd, Sopralific Ltd, Starseekers Ltd, Volando Ltd, Drivingforce Limited, Delvetro Ltd, Double Leisure Ltd, Obregado Ltd, Performante Ltd, and Semprenoi Ltd also face charges. Both individuals pleaded not guilty.

A tax audit conducted by the Malta Tax and Customs Administration (MTCA) initially covered the period between 2016 and 2022 but was extended to May 2024. The audit revealed that the couple had acquired approximately €12 million in property during this time and held 26 active bank accounts, 19 of which were in Malta, with the rest in EU countries such as Germany, Belgium, and Lithuania.

It was also discovered that they had taken out two home loans of around €400,000 and €500,000, repaying them in just three and eight months, respectively. This rapid repayment was flagged as suspicious.

An MTCA accountant noted discrepancies in community acquisitions exceeding €280,000, where suppliers reported providing more services than what was declared. This was identified through a shared VAT refund database across the EU, where businesses log sales and list client details.

Investigators also compared the couple's declared income against their accumulated assets. The MTCA accountant explained that their analysis included asset appreciation while subtracting estimated living expenses. However, it did not account for lifestyle expenditures such as travel, as their methodology follows the National Statistics Office’s (NSO) estimated average yearly living expense for a family of four, set at €28,000.

During the court proceedings, prosecutors requested a freezing order on the couple’s assets. Defence lawyer Joe Giglio argued that an administrator had already been overseeing their finances since October. Nonetheless, the court approved the request, giving prosecutors 90 days to specify the assets to be frozen.

Police inspectors Tonjoe Farrugia and Robert Azzopardi, together with Attorney General lawyers Andrea Zammit and Rebecca Spiteri, are leading the prosecution.

As the case continues to develop, the Accountancy Board has confirmed that it will take any necessary action when appropriate, in accordance with the judicial outcome.