Tuesday 6 December 2016

Eirtech units reach €2.7m agreement with Irish Revenue

Published 10/05/2016 | 02:30

Eirtech was acquired in 2014 by Los Angeles-based Vance Street Capital
Eirtech was acquired in 2014 by Los Angeles-based Vance Street Capital

Units of Eirtech Aviation, the Shannon-based aircraft painting company, have concluded agreements with the Revenue Commissioners in relation to historical tax liabilities that have seen them hand over more than €2.7m to the authority.

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Eirtech was acquired in 2014 by Los Angeles-based Vance Street Capital in a deal thought to be worth in the region of $50m (€43m).

Eirtech Aviation Ltd has made a €1.1m payment to the Revenue in respect of its 2014 financial year, and €432,000 in respect of its 2013 financial year.

Eirtech Aviation (Dublin) Ltd made a €759,000 payment in respect of 2014 as a result of the agreement, and €496,000 in respect of 2013.

In the latest set of accounts for both firms just filed with the Companies Registration Office, Eirtech notes that it has secured the agreement with Revenue regarding the historical taxation liabilities "which were omitted in error from prior year financial statements".

Eirtech Aviation reported a profit of almost €1.5m for 2014. But the impact of the €1.1m adjustment slashed that to just €345,000.

The companies have also revealed that they're engaged in correspondence with the Revenue Commissioners with regard to a "technical interpretation of tax legislation".

"The directors are of the opinion that this matter is unlikely to result in a further liability to the company," it said.

Eirtech Aviation also paid a €1m dividend to shareholders in respect of its 2014 financial year, while Eirtech Aviation (Dublin), paid a €2m dividend. Accounts for that unit note that a fire that broke out at its hangar in Dublin last August cost the company about €417,000.

The company, which also refurbishes aircraft, has operations in Shannon, Dublin, Italy and the Czech Republic. Its clients include airlines such as Qatar Airways, Aer Lingus, Southwestern, Etihad and Alitalia.

Eirtech was 75pc owned by Niall Cunningham, who was chief executive of Eirtech, with the remainder owned by chief operating officer Peter Collins.

Vance Street Capital acquired Eirtech and integrated with its existing US aviation painting and refurbishment businesses, Leading Edge Aviation and Associated Painters. They have formed one group, called International Aerospace Coatings (IAC), of which Mr Cunningham is now CEO.

Eirtech did not respond to a query seeking comment.

Irish Independent

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