A co-director of a defunct company who had been found guilty of failing to pay tax and social security contributions ended up working as a refuse collector as he had no means to pay the court-imposed fine, a judge heard.

The case involves the directors of Kidsline Ltd, owned by three brothers  - Carmelo, Philp and Raymond Cutajar. The company had gone into liquidation after just one year leaving behind unpaid income tax, social security contributions and VAT bills.

All three were eventually prosecuted and found guilty. In spite of the fact that the cases were heard by the same magistrate, Carmelo Cutajar had been spared a daily fine. But Philip and Raymond Cutajar were not and they appealed the harsher sentence. The case is being heard before Judge Giovanni Grixti.

Lawyer Stefano Filletti argued that the huge fines imposed on his clients coupled with the fact that they were not entitled to a pension led one of them, aged 71, who also had severe mobility issues to work as a refuse collector.

Dr Filletti described the cumulative penalties as “state-sponsored usury”.

He also questioned the discrepancies in the punishment handed to the three directors, due to the fact that they all faced the same charges.

The lawyer pointed out that his clients were willing to pay the tax with penalties, but argued that the court-imposed fine was disproportionate for someone with a €400 salary. He argued that even if his client had to sell all his belongings, he would never be able to pay the fine in his lifetime.

“This is inviting him to go to prison,” Dr Filletti told the judge.

The court will issue a decree on the matter in December.