independent

Thursday 17 April 2014

Retired motor sales director settles tax bill of €6.2m

The clubhouse at Parnell’s GAA in Dublin.
The clubhouse at Parnell’s GAA in Dublin.

A BUSINESSMAN who has made a €6.2m tax settlement with the Revenue Commissioners was a director of a motor sales company that made a €2.59m settlement last year.

Other defaulters listed by Revenue included a landmark Galway hotel and the Dublin GAA club that boasts inter-county goalkeeper Stephen Cluxton among its panel.

Settlements totalling more than €27m were made in the three-month period up to the end of September.

Of the 88 cases on the list, 43 exceeded €100,000, of which eight exceeded €500,000 and six made settlements of more than €1m.

The highest settlement -- €6.2m -- was made by retired company director John Joseph McCarthy, formerly of Flower Lodge, Strawhill, Fermoy, Co Cork. He was named on the latest tax defaulters' list after a revenue investigation into underdeclaration of income tax, capital gains tax and stamp duty. Mr McCarthy is a former director of the now-liquidated John McCarthy Motors Ltd, which appeared on the list at the same time last year over a settlement of €2.59m due to underdeclaration of VAT.

PENALTIES

Attempts to contact Mr McCarthy were unsuccessful last night.

The next highest settlement was made by the The Skeffington Arms Ltd, the company that runs the hotel of the same name in Galway's Eyre Square.

It was found to have underdeclared corporation tax, PAYE/PRSI, stamp duty and VAT and settled for €4.1m.

Andrew Redmond and Sons Ltd, a company that ran a pub in Main Street, Bunclody, Co Wexford was found to have underdeclared VAT and PAYE/PRSI with the settlement including tax, interest and penalties coming to €1.8m.

One of its directors, Matthew Redmond, said the matter was "under review", adding: "I can't say anything about it."

Others listed included Gerald Clarke, an agricultural contractor from Greaghaduff, Bailieboro, Co Cavan (€1.4m); Patrick Wheelock a landlord form Moneyhore, Enniscorthy, Co Wexford (€1.1m) and Graham Quinn, a landlord and company director with an address in Hazelwood, Northwood, Santry (€923,000).

James Connolly, a pharmacist at The Square, Kildare Town was listed with a settlement of €1.2m over underdeclaration of income tax and capital gains tax.

He told the Irish Independent that the non-payment of tax related to when he inherited the business from his late father.

He said: "They (Revenue) claimed that that money was earned in his name not mine and I hadn't paid inheritance tax on it basically."

He confirmed he has almost finished paying the outstanding tax and penalties, adding: "To be honest, I didn't realise the implications of it."

Meanwhile, the company behind Dublin GAA club Parnell's, in Coolock, settled for €101,000 after a revenue audit found it had underdeclared PAYE/PRSI. The successful club, which won this year's Senior Hurling B Championships, includes Dubs star Stephen Cluxton on its senior football panel.

Parnell's chairman Tony Fitzpatrick said the non-payment of taxes occurred in the employment of casual staff for the club house. He said: "It was bar workers, that sort of stuff -- just generally people who were in the club who would have been given a few bob for doing stuff."

Mr Fitzpatrick said the full sum has been paid to Revenue adding: "We've put the processes in place to make sure it doesn't happen again."

Settlements are only published when the extensive voluntary disclosure options are not availed of and the default is as a result of careless or deliberate behaviour.

See the full list of tax settlements.

Irish Independent

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