Search

20 Jan 2022

Who didn't pay their taxes? Inventor, haulier, medical agencies, car dealers on Revenue's lists

Revenue Commissioners publish latest tax defaulter lists

Who didn't pay their taxes? Midlands motor vehicle dealer's huge €11  million  Revenue bill revealed

Revenue is responsible for collection taxes that help pay for public services

An inventing company owed more than €1 million in unpaid taxes according to the latest Tax Defaulter list published by the Revenue Commissioners which also reveals that a haulage contractor given a custodial sentence for VAT offences.

The Kerry-based 'patent licensor' was listed alongside three medical staff providers, car dealers and others who didn't pay money to the State as required in law to help fund schools, hospitals, housing and other public services in Ireland. 

The hauliers is on a second-list where the court had to step in to enforce the tax law on people and companies who did not pay there way.

They are listed in the Revenue's published List of Tax Defaulters in respect of the period July 1 to September 30, 2021. During the same three months, investigations resulted in more than €94.9 million in tax, interest, and penalties from people who chose not to their way.

While most people pay up when Revenue calls others don't and have to be subjected to extensive audits to find out how much they owe.

Among those were two patent licensors, otherwise known as an inventor, with the same address in Kerry. Jurras Ltd, which is now in liquidation, had an address at Cahernard, Castleisland.

It had unpaid tax of €345,928 following a Revenue Audit Case for under-declaration of Dividend Witholding Tax. Interest was calculated at €571,962 while penalties ran to €138,371. The total bill ran to €1,056,261. 

Foxgold Ltd is listed as a patent licensors operating at the same address in Castleisland. It had unpaid taxes of €81,571 after a a Revenue Audit Case for under-declaration of Dividend Witholding Tax. Interest on this ran to €124,941.00 while the penalty was calculated at €32,629.00. The total owed by the company, which is also in liquidation, amounted to €239,141.

The directors of these companies are not named on the list.

They are listed is on Part 2 of the list compiled pursuant to Section 1086 of the Taxes Consolidation Act, 1997. The total number of settlements published is 15 The total value of these settlements is €2.8 million. Where a taxpayer has failed to pay or failed to enter into an arrangement to pay the full amount of the settlement, the amount unpaid as at 30 September 2021 is indicated in the list.

There are some other notables on Part 2. Jonathan O'Brien Cars Ltd at Unit 52, Tramore Industrial Estate in Cork had a bill of €78,790.88. Monaghan car dealer Seamus McPhillips Ltd of Kilcrow Clontibret ended up owing €124,749.24.

Three medical staff agencies are on the list. Andrewendomed Medical Ltd of 82 Lioscian, Swords owed €113,690. Tariq Medics Ltd, of 119 Hazelbury Green, Clonee owed €88,459 while Vitraxa Medical Ltd of Unit 5, Steamboat Quay, DOCK Rd in Limerick owed €66,206.00.

The directors of these three companies are not named on the list.

A total of nine cases involved amounts exceeding €100,000. All 15 Part 2 list cases, settlement was either fully paid or arrangements to fully pay were in place as at 30 September 2021. 

The Revenue say Part 2 settlements are not published where the taxpayer has made a qualifying disclosure relating to undisclosed tax, as defined in Section 1077E (1) of the Taxes Consolidation Act 1997, where the settlement amount does not exceed the relevant threshold, currently €35,000, or where the amount of fine or other penalty does not exceed 15% of the amount of tax.

See FULL PART 2 LIST HERE. 

Revenue also publishes a Part 1 list which includes persons in whose case the Court has determined a penalty relating to a settlement, or has imposed a fine, imprisonment or other penalty in respect of a tax or duty offence.

The biggest penalty on this list was accrued by Alan Donohoe, a mobile phone repair service provider trading as GSM Solutions from 6 & 7, Uppr Abbey St, Dublin 1.

The penalty determination by the Courts in relation to a non-declaration of income tax and VAT in the this case amounted to €35,801.00 due to an under-declaration of Income Tax and VAT in the amount of € 89,503.

Also listed on Part 1 is John Fitzsimons of 124 Whitethorn Park, Palmerstown, Dublin 20 who was sentenced for not paying up. The haulage contractor was given a two year custodial sentence on four charges arising from a failure to lodge a VAT return. Two counts of failing to remit VAT were taken into consideration by the court.

Revenue says the Part 1 list contains cases where penalties relating to under-declaration of tax or non-declaration of tax are determined by the Court, and where the tax, interest and penalty are more than €35,000, the penalty exceeds 15% of the total tax.

See FULL PART 1 LIST HERE

Revenue say these published settlements reflect only a portion of all Revenue audits and investigations. 

In the 3-month period to September 30 a total of 280 Revenue audit and investigations, together with 14,142 Risk Management Interventions (Aspect Queries and Profile Interviews), were settled, resulting in a yield of €94.9 million in tax, interest, and penalties. . 

#EXPLAINER AND FURTHER INFO ON LATEST LIST

Part 1: Court Determinations

Court Determination of Penalty: Subject to certain criteria, in settlement cases where there is no agreement to a penalty, or a person fails to pay an agreed penalty, the Court determines the penalty. Details are published when the Court determined penalty exceeds 15% of the total tax and the total of the tax, interest and penalty is more than €35,000 and a qualifying disclosure has not been made: 

There was 1 such case in the 3-month period to 30 September 2021 totalling €35,801
Court imposed fine, imprisonment or other penalty: Details are published when a fine or other Court penalty is imposed in respect of tax or duty offences. Court penalties may include imprisonment, partly suspended or suspended sentences, community service in lieu of imprisonment, and closure orders.

90 such cases are published and €198,032.50 is the total of court fines imposed.
These include:

  • 47 cases relating to failing to lodge tax returns, failing to remit VAT, failing to keep/retain proper books and records, producing an incorrect invoice/document and delivering incorrect VAT returns. Court fines totalling €81,400, one 2-year custodial sentence and one 4-month sentence, fully suspended, were imposed;
  • 15 cases relating to the misuse of marked mineral oil and 1 case of the failure to hold a current mineral oil licence in respect of which Court fines totalling €46,000 were imposed;
  • 25 cases relating to excise offences for tobacco smuggling, illegal selling of tobacco, illegal betting and failure to hold a current liquor licence in respect of which Court fines totalling €69,132.50 were imposed;
  • 2 cases of obstruction of a Revenue officer, in respect of which Court fines totalling €1,500 were imposed.


Part 2: Settlements

Settlements are published when the extensive voluntary disclosure options are not availed of and the default arises because of careless or deliberate behaviour:

  • 15 cases are published today and €2.8 million is the total settlement amount in these cases; 
  • 9 cases were for amounts exceeding €100,000
    of which 1 exceeded €1 million
  • In all cases, settlement was either fully paid or arrangements to fully pay were in place as at 30 September 2021. 

Background

Revenue says its compliance programme is carried out under the "Code of Practice for Revenue Audit and other Compliance Interventions" (the Code). The significant benefits of making a ‘qualifying disclosure’ are set out in the Code and include availing of reduced penalties, avoiding publication in the List of Tax Defaulters, and avoiding possible prosecution.

Publication

Revenue says it publishes the List of Tax Defaulters under the provisions of Section 1086 of the Taxes Consolidation Act, 1997, as amended. The list is published in two parts:

Part 1: Court Penalty Determinations and Court imposed fine, imprisonment or other penalty

Court penalty determinations are published where a taxpayer has not made a qualifying disclosure, the Court determined penalty exceeds 15% of the total tax, and the total of the tax, interest and penalty is more than €35,000.

All cases where a fine, imprisonment or other Court penalty is imposed by a Court, in respect of a tax or duty offence, are published.

Part 2: Accepted Settlements (and Settlements deemed to be agreed due to full payment)

Where a taxpayer has voluntarily furnished complete information relating to undisclosed tax liabilities and paid the tax and interest due (made a qualifying disclosure of tax defaults), settlements are not published.

Since 1 May 2017, significant changes and restrictions have come into effect where the case involves matters outside the Republic of Ireland, or 'offshore matters'. These changes limit the opportunity to make a 'qualifying disclosure' and coincide with increased international co-operation whereby Revenue gets more and more information automatically from other jurisdictions.

Legislation introduced in the Finance Act 2016 obliges Revenue to identify settlements where the person has failed to pay within the relevant period. 

Settlements are not published where the taxpayer has made a qualifying disclosure relating to undisclosed tax, as defined in Section 1077E (1) of the Taxes Consolidation Act 1997, where the settlement amount does not exceed the relevant threshold, currently €35,000, or where the amount of fine or other penalty does not exceed 15% of the amount of tax.

Calculation of Penalties

Where a qualifying disclosure has not been made, Revenu say penalties between 15% and 100% are applied, depending on the category of default and whether or not the taxpayer has cooperated fully with Revenue in the course of enquiries. The categories of default are Deliberate Behaviour or Careless Behaviour.

Deliberate Behaviour involves either a breach of a tax obligation with indicators consistent with intent on the part of the taxpayer or a breach that cannot be explained solely by carelessness
Careless Behaviour involves lack of due care, which results in the incorrect declaration of tax liabilities by a taxpayer, or which results in the making of incorrect repayment claims. The level of penalty may be further reduced having regard to the level of cooperation provided by the taxpayer once the default is uncovered. Full details of the level of penalties applicable to audit settlements are set out in Penalty Table 1 (Paragraph 5.6.2) of the Code.

Innocent errors and adjustments due to different interpretations of legislation

Penalties are not applicable where a tax default is not deliberate or is not attributable in any way to the failure by a taxpayer to take reasonable care to comply with his or her tax obligations. Neither is a penalty applicable where an adjustment to liability arises from differences in the interpretation or the application of legislation, and the taxpayer could reasonably have considered her/his interpretation to be correct.

To continue reading this article for FREE,
please kindly register and/or log in.


Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.