Judgment in excess of £1.75m secured against businessman

The Criminal Assets Bureau has secured judgment against a Dublin businessman for more than £1.75 million in alleged unpaid income tax and interest.

Mr Justice O'Higgins granted the application by Ms Grainne Clohessy, for CAB, for judgment for £1,753,302 and costs against Mr Thomas McDonnell, Lower Grattan Street, Dublin. The sum is based on an assessment of alleged unpaid income tax and interest over a 10-year period from 1988.

The judge rejected arguments which claimed Mr McDonnell had a valid appeal against the tax assessments at the time CAB initiated proceedings for judgment, and in those circumstances CAB could not succeed.

Following his decision, on the application of Mr Paddy Hunt, for Mr McDonnell, Mr Justice O'Higgins granted a 21-day stay on the judgment to facilitate an appeal to the Supreme Court.

Earlier, in an affidavit, a CAB officer said he believed the monies charged to tax which were the subject matter of the proceedings followed an investigation by CAB into Mr McDonnell's assets "which derive or are suspected to derive directly or indirectly from criminal activity".

In another affidavit the CAB legal officer said he believed Mr McDonnell had no bona-fide legal defence to the claim for judgment and had paid no monies since the proceedings were initiated in July 1998.

Mr McDonnell, in an affidavit, said he was not indebted to CAB or the Revenue Commissioners in the sum alleged or at all. He said the tax assessments made were "wildly arbitrary and excessive".

He said his solicitors had entered an appeal against the assessments on May 6th, 1998. He said such assessments only become final and conclusive in default of a notice of appeal but that was not the situation in the present case.

In a replying affidavit, Mr Galvin said it was incorrect for Mr McDonnell to state the assessments were not final and conclusive. There was no valid appeal against the assessments in being at any stage, he said.