Former FF TD goes on trial for tax fraud
Michael Collins leaving Limerick Circuit Criminal Court yesterday
IN what is claimed to be the first case of its kind, a former Fianna Fail TD has gone on trial over allegations that he got a tax clearance certificate by falsely claiming he was tax compliant, while he held funds in a bogus non-resident account.
Michael Collins (66) of White Oak, Red House Hill, Patrickswell, Co Limerick, who represented the Limerick West constituency from 1997 to this year, has pleaded not guilty to the tax offence.
The former politician is charged with obtaining a tax clearance certificate, under the provisions of the Standards in Public Office Act, by falsely pretending to be tax compliant on a date unknown between May 3 and June 12, 2002.
Standards
Prosecuting on behalf of the DPP, Tom O'Connell SC told Limerick Circuit Criminal Court that, while serving as a TD, Mr Collins had to declare he was tax complaint with the Collector General as according to the Standards in Public Office Commission.
Mr O'Connell said the legislation was introduced "so that lawmakers would conform to a certain standard that you would expect".
Judge Carroll Moran heard that, when the defendant applied for the tax clearance certificate in May 2002, he declared that all information provided was true and correct.
The court also heard that a statutory declaration was witnessed and signed by Fianna Fail TD, Peter Power.
Principal Officer assigned to chase up bogus non-resident accounts, Gerard Howard, said in the 1980s and 1990s between 25,000 and 50,000 Irish people had bogus non-resident accounts.
"A lot of Irish people falsely pretended they lived abroad so they didn't have to pay deposit interest retention tax (DIRT)," said Mr Howard.
In May 2001, the Revenue Commissioners launched a scheme of voluntary disclosure, allowing account holders to settle liabilities without fear of prosecution and with less penalties.
The campaign was advertised nationwide and the closing date was November 15, 2001. Between October 2002 and January 2004, a total of 177,000 letters were sent to suspected people who had not come forward in the time permitted.
On January 20, 2003, the Revenue Commissioners wrote to Mr Collins informing him that they believed he held a bogus non-resident account.
Mr Collins admitted the existence of an account with AIB in Kilmallock, Co Limerick, which was opened 1984.
The court heard he was the beneficiary of the bank account which was in the name of Joseph and Ann Collins at Croydon, Surrey, England.
Mr Collins gave a cheque to the revenue for €274,878 in February 2003.
After review, the extent of his liability on tax, interest and penalties was put at €130,602 and the politician was refunded the difference.
"He declared that his tax affairs were in order and signed the declaration. This was false and a misrepresentation," said the prosecuting barrister.
The case continues today.
