Summary judgment sought on alleged unpaid taxes

The Criminal Assets Bureau yesterday applied to the High Court for summary judgment against a Cork man for more than £2.5 million for alleged unpaid tax and interest.

During the hearing Mr Richard Law Nesbitt SC, for CAB, claimed that the court was being "played with" by Mr Patrick McSweeney, of Fairwinds, Waterfall Road, Bishopstown, Cork, against whom the judgment, which relates to alleged unpaid tax for the years ending April 1992, 1993, 1994 and 1996, was sought.

Dr Michael Forde SC, for Mr McSweeney, opposed the application. He said his client had a bona-fide defence and the matter should go to a full trial.

In an affidavit, Mr McSweeney said he believed the proceedings were "premature and misconceived" and should be dismissed or, at the very least, stayed until all appeals in respect of the assessments had been determined. "It is unprecedented for the Revenue to sue taxpayers prior to the appeals procedure being exhausted."

He said the assessments in question were made on November 25th, 1997, and before that the CAB had been "prying into my affairs" which had caused his former accountant to terminate his retainer. He said he gave the assessments to his solicitor, Mr John McCarthy, who on December 22nd, 1997, had put in a notice of appeal. That notice was refused by CAB in a letter of January 7th, 1988, which informed him he might wish to have a late appeal.

Mr McSweeney said that because of CAB's involvement it was very difficult for him to get another accountant. However, he eventually got one to help him prepare his appeal and that appeal was submitted on October 19th, 1998.

He was advised that CAB was stopped from taking judgment proceedings until a reasonable period had elapsed from the letter of January 7th. CAB had taken proceedings for judgment on January 22nd last, and he did not think the period between January 7th and January 22nd was reasonable.

He also said the Revenue was not entitled to insist on him paying the full amount allegedly due, and if it was entitled to do so, the relevant laws which granted this were unconstitutional.

Pressed later on exactly what defence was being advanced, Dr Forde said he would be raising constitutional points and arguing that his client wished to appeal the judgments. Mr McSweeney would also submit that he had availed of the 1993 tax amnesty.

Mr Nesbitt, for CAB, said Mr McSweeney had advanced no bona-fide defence and had never put a proper case as to why judgment should not be made. No appeal against the judgment was made within the statutory time limits and an appeal could not be taken during the present proceedings.

He said the affidavit from Mr McSweeney was so incomplete it was dishonest. Mr McSweeney had not given any details of his income or how he earned a living.

He also argued that the legislative provisions regarding tax collection had been tested and found to be fully constitutional.

The case was adjourned to November 3rd.