A businessman who failed to pay the tax he had deducted from employees’ salaries has been given a suspended jail term and ordered to pay the outstanding €616,184 within six months.

Owner of Aluminium Extrusions Ltd, Carmel Borg, 47, admitted to failing to pass on the tax payments he had taken from employees’ salaries from January 1998 to January 2002, which amounted to €637, 320.

The court heard how the company was going through very difficult financial times and the tax deducted from employees was used to keep the company running.

The employees would receive their net salary after the tax was deducted but Mr Borg failed to pass on the amounts to the Inland Revenue Department.

Taking the witness stand, Manuel Silvio, a principal in the tax department, said that Mr Borg had always submitted his tax returns on time, however, failed to attach the relative payments.

Also testifying, Lugardo Mercieca, a representative of the department, said that Mr Borg had entered into negotiations with the department and had come to an arrangement to pay the amount.

However, so far the amount outstanding still stood at €616,184.

Magistrate Audrey Demicoli found Mr Borg guilty of failing to pay the amount and of misappropriation since he had failed to pass on the amounts in order to keep the business running.

She handed down a 13-month jail term suspended for two years and ordered him to pay the outstanding amount within six months.

Police Inspector Priscilla Caruana prosecuted.