A discount deal that was being formulated between the taxman and construction magnate Charles Polidano, known as Iċ-Ċaqnu, has recently been cancelled by the government, Times of Malta has reported.

For the last few months, Polidano was in discussion with the Inland Revenue Department in order to reach an agreement on how the €40 million worth in tax can slowly be paid and have it substantially reduced.

Last year he had initially agreed to proposals brought forward by the Inland Revenue Department to start paying the money that he has owed, both for public works and also for land sold.

The initial plan was to adopt a system of monthly payments to cover the first third of the tax bill, along with help from a loan. 

The agreement was questionable from the beginning, with the green party ADPD even filing a report at the National Audit Office.

It appears that a few weeks ago the final deal was drafted but it was scrapped within hours, as politicians intervened.  Sources also confirmed that the government was not happy with the agreement, with the down payment seeming to be far too low considering the wealth in question.

The agreement had been reached following a series with Finance Ministry officials, with Polidano’s unpaid taxes stretching back to the mid-1990s.

Talks regarding this agreement between Polidano and the Inland Revenue are now rumoured to begin again from scratch.

In November of 2020, Infrastructure Malta said it had blacklisted Polidano from getting more road contracts until he paid his massive tax bill. It later emerged that Ċaqnu’s companies were still bidding for projects.

Polidano Group is one of the leading construction groups on the island, with the company being involved in the majority of big projects, with Polidano being one of the wealthiest men in the Maltese islands.

Do you think the deal should be made?