Accountant acquitted of false VAT returns preparation

A 51-YEAR-OLD accountant walked free from court yesterday after a jury took less than two hours to acquit him of aiding and abetting the filing of incorrect value added tax (VAT) returns in a prosecution brought by the DPP on behalf of the Revenue Commissioners.

John O'Donohoe of Waterside, Waterford, had denied a charge that in May 2001 he knowingly aided and abetted a company, Paclene, deliver an incorrect return in relation to VAT for the period March/April 2001.

Yesterday, a jury found Mr O'Donohue not guilty of the charge after hearing evidence over three days before Judge Rory McCabe at Waterford Circuit Criminal Court.

Mr O'Donohue, who has been in accountancy since 1981 but recently began practising as a solicitor, expressed his delight at the verdict and strongly criticised the Revenue Commissioners.

"The only thing I can say is that I am overjoyed. It would have been a poor day in Ireland if I was brought in on strict liability and I would like to thank the jury for their consideration of the case and it just proves the jury system works well in Ireland.

"I was always confident (of acquittal) because I did nothing wrong . . . this was a frivolous, vexatious and malicious action which was brought by the Revenue Commissioners when they couldn't get anyone else - I was the fall guy."

However, a spokesman for the Revenue Commissioners rejected Mr O'Donohue's comments. He pointed out that the Revenue had already prosecuted the managing director of Paclene Ltd, Austin P Brady, who had pleaded guilty in relation to the same case.

Both Mr Brady and Paclene, of Gort Road, Ennis, were prosecuted for knowingly or wilfully delivering an incorrect VAT return for March/April 2001 and failing to remit value added tax within the time specified by the acts, said the Revenue spokesman. Mr Brady and the company both pleaded guilty to the two offences before Judge John O'Shea at Naas Circuit Criminal Court, the spokesman said.

On June 17th last, he was given a three-year suspended sentence on each of the charges and bound to the peace for five years, added the spokesman.

"We reject these allegations (by Mr O'Donohue).

"Revenue has never, and would never, advance cases for prosecution to the DPP except after very serious and careful consideration. We have structures in place to ensure that only appropriate cases are advanced for prosecution," the spokesman said.

The case revolved around Paclene's purchase in 2001 of a factory in Ennis from Irish Polythene Industries for £600,000, and its sale on the same day for £1.6 million to Galileo Enterprises.

The State alleged Paclene was entitled to a 12.5 per cent VAT rebate of £75,000 on its £600,000 purchase of the premises but had a 12.5 per cent VAT liability of £200,000 on its subsequent £1.6 million sale of the property, and neither were declared in a VAT return.