Deducts employees' tax but fails to submit returns

A former company manager was yesterday conditionally discharged for a year for deducting income tax from his employees' pay but failing to submit tax returns to the departments of inland revenue and social security.

Karl Bonello, 52, a former manager at Testing Limited, was found guilty of failing to submit income tax returns and misappropriating Lm8,603 between January 1990 and May 1992.

Magistrate Jacqueline Padovani-Grima heard how Bonello had reduced the income tax from his employees' salary but failed to submit it to the tax department.

She also heard Bonello explain that the company had been in financial difficulties and he paid the employees out of his pocket.

But the magistrate noted that although the company was in financial difficulties, once he decided to continue his business and continue employing people, he was obliged to submit the tax deducted from their pay to the relevant departments.