A millionaire Northern Ireland businessman lost an appeal yesterday against a £575,000 tax bill in respect of 20-year-old dividends in his textile factory in the Republic.

The Appeal Court in Belfast affirmed a decision not to quash an assessment on UTV chairman Mr John McGuckian for 1978-79, when the top rate of tax was 83p in the pound.

Mr McGuckian, of Cloghmills, Co Antrim, had based his appeal on the grounds that the assessment was "out of time" as it was issued after the statutory sixyear limit.

The Lord Chief Justice, Sir Robert Carswell, said the appeal was another instalment in Mr McGuckian's long-running dispute with the Inland Revenue over his liability for payment of income tax in the UK on several large dividends declared by Ballinamore Textiles Ltd, Co Leitrim, which he established in 1972.

Sir Robert recalled that in 1994 Mr McGuckian lost an appeal against a tax assessment of £400,000 in respect of Ballinamore dividends declared in 1980.

In his judgement in the 1994 case he had set out the history of a tax avoidance scheme Mr McGuckian entered into on the advice of an English tax consultant "on whose conduct I commented in unfavourable terms". Sir Robert added: "I described the complex manoeuvres which had the effect of concealing from the Inland Revenue the true facts for a substantial period of time."

He ordered Mr McGuckian to pay the costs of the hearing.

Barrister Mr Michael Keogh said his client wished to consider taking the matter to the House of Lords.

The Lord Chief Justice said: "If you are instructed to seek leave to appeal we will hear the application in due course."