Ċaqnu company given two days to pay €800,000 in VAT dues

The Polidanos — better known as Tac-Ċaqnu — are in the red with the tax authorities again. The influential building contractor owes millions in outstanding dues which have been allowed to accumulate for decades.

In a court notice issued a few days ago, Montekristo Direct Ltd, owned by the Polidanos together with Siggiewi’s Ta’ Smina poultry producers, was ordered to pay some €800,000 in unpaid VAT to the Commissioner of Inland Revenue.

According to the notice, if the required payment is not made, the commissioner retains the right to seek a seizure of the company’s assets.

The court also issued individual orders against brothers Paul and Charles Polidano, Joseph Spiteri and Antoinette Rodo as company directors. Montekristo Direct, which sells food, beverage, and tobacco products, also lists Gracelle Cilia as a minority shareholder.

Carmel and Paul Polidano own some 35 companies in sectors as wide ranging as construction, hospitality and entertainment, and have been in the red with the tax authorities for decades.

The tax authorities have four pending cases against them or their companies. They told the court that they are negotiating with the government over a possible settlement.

The Polidanos and their companies were blacklisted by Infrastructure Malta in 2020 until they settled their taxes. At the time it was reported that they owed some €40 million.

Some of the cases were dropped after a reported settlement, allegedly including a repayment program spread across several years, but the Finance Ministry did not provide details.

According to procurement rules, companies with outstanding tax dues including VAT, income tax and social security payments are barred from participating in government tenders.

This rule was never really enforced, and companies in different sectors have used their contacts to circumvent the law and obtain a form of temporary clearance from the authorities.

Ic-Ċaqnu and his companies continue to be awarded millions in government contracts annually through tenders or direct orders.