Offaly motor dealer tops Revenue's tax defaulters list and hit with huge bill
A large oil supplier and a motor dealer from Offaly have been hit with tax penalties after being named on the tax defaulters list for the first quarter of 2021 by Revenue.
James Joseph Daly, a motor dealer trading as Any Gear, with an address at 13 Grays Meadow, Cloghan, Co Offaly, was hit with major penalties after a Revenue investigation uncovered huge under-declaration of income tax and VAT.
This resulted in being ordered to pay €11.7 million to Revenue; €4.5 million in tax, €2.55 million in interest and almost €4.6 million in penalties.
The entire settlement remained unpaid as of March 31, 2021, according to Revenue.
Flaherty Fuels Oils Ltd based in Ballylin, Ferbane, were also audited and found to be under-declaring excise duty. They were hit with penalties totalling €89,641.43 on a tax bill of €388,446.22 and €271,912.35 in interest. Their total bill owed to Revenue afterwards was €750,000. This bill was paid in full by March 31 of this year, according to Revenue records.
Revenue published its List of Tax Defaulters in respect of the period 1 January 2021 to 31 March 2021 on Tuesday. The list is published in two parts with both of these Offaly defaulters listed in part 2 which covers settlements. Settlements are published when the extensive voluntary disclosure options are not availed of and the default arises because of careless or deliberate behaviour.
Part 1 of the list related to 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.
Part 2 refers to persons in whose case Revenue has accepted a settlement offer instead of initiating court proceedings, or a settlement has been paid in full. This list reflects the amount of a settlement that remained unpaid at the end of the period 31 March 2021.
Details of court-imposed fines, imprisonment or other penalties 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. 44 such cases are published and €106,067 is the total of court fines imposed.
These include 11 cases relating to failing to lodge tax returns, producing an incorrect invoice/document and claiming tax relief to which the taxpayer was not entitled. Court fines totalling €26,250 and two 18-month sentences, both with six months fully suspended, were imposed; 23 cases of misuse of marked mineral oil and 1 case of oil laundering in respect of which Court fines totalling €67,501 and one 12-month sentence, suspended for two years were imposed; 6 cases of excise offences for tobacco smuggling, illegal selling of tobacco and failure to hold a current liquor licence in respect of which Court fines of between €632 and €2,500 were imposed; 3 cases of obstruction of a Revenue officer, in respect of which Court fines totalling €2,800 were imposed.
30 settlement cases were published on Tuesday in Part 2 of the list and €21,371,188 is the total settlement amount in these cases.
16 cases were for amounts exceeding €100,000, of which 5 exceeded €500,000, including Flaherty Fuels, and 3 of which exceeded €1 million; including James Joseph Daly trading as Any Gear.
€13,811,898 was the amount unpaid on this list as at 31 March 2021, including €11.7 million attached to the settlement arrangement relating to Mr Daly and Any Gear.
These published settlements reflect only a portion of all Revenue audits and investigations.
In the 3-month period to 31 March 2021 a total of 234 Revenue audit and investigations, together with 15,720 Risk Management Interventions (Aspect Queries and Profile Interviews), were settled, resulting in a yield of €121.4 million in tax, interest, and penalties.
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