The period during which Ignatius Forde (48) committed Revenue offences was one when the Irish film industry was booming, with lots of foreign production teams coming here to film.

He provided payroll services to some of the larger productions during this period. It is understood that at least £10 million (€12.7 million) moved through the accounts of operations managed by him.

The money was used to issue payments and settle tax bills for workers on such films as Braveheart, starring Mel Gibson, Moll Flanders, starring Robin Wright and Morgan Freeman, and Old Curiosity Shop, starring Peter Ustinov and Tom Courtenay. Other movies services were provided to were Scarlett and Amazing Love Stories.

However, not all of the money which should have been passed on to the Revenue by Bradford Productions, was passed on. It is understood the total amount involved exceeded £1 million (€1.27 million).

Forde pleaded guilty to two particular offences concerning income tax for the months of June and July 1994. The June returns stated that the amount due to the Collector General was £33,631.23. In fact the amount due was £143,631.23, or £110,000 above what was declared.

The July returns stated the amount due was £37,217.85, whereas the true amount due was £197,217.87, or £160,000 above what was actually returned. The total shortfall for the two months was £270,000.

Other indictments which had been prepared against Forde were not proceeded with at the initial court hearing last March but the court heard that about £1 million due to the Revenue may not have been paid.

Forde is a Carlow-based accountant who qualified in 1977 and set up a private practice in 1986. He told the Revenue he came across the opportunity of doing film accounts and took it up. He met a Swedish film producer who was researching Section 35 relief, and Mr Morgan O'Sullivan, the film producer, who had contacts in the US. There was a demand for a payroll company and he began to use a shelf company, Bradford Productions, for this purpose. He also became involved in a company called O'Sullivan Forde Productions, and other companies.

Forde told the Revenue he was the full owner of Bradford, that it held no directors' meetings, no a.g.m., and that no trading accounts were ever prepared. He also said all decisions were made by him.

Bradford Productions invoiced film production companies on a weekly basis for gross salary, employers PRSI and a fee for the services to cover expenses. But it is understood no service fee was received by Bradford Productions from the Braveheart production as the fee was received by O'Sullivan Forde Productions, of which Forde was a 50 per cent owner.

The Revenue became concerned about Bradford Productions in April 1995. Forde was the subject of publicity when a court order freezing assets connected to him was granted. Revenue Inspector Tom Keating visited Forde and conducted some inquiries. He decided Bradford Productions had a liability to the Revenue of £1.4 million, but had only submitted returns for about £400,000.

It appeared that more than £1 million was missing, the Circuit Court was told in March. A bank account showed a balance of £695,000, so the net amount missing, at that point, was about £300,000.

Forde told the Revenue that his company was owed money from film production firms and that when the freezing order was lifted the Revenue would get the money it was owed.

In April 1996 the Revenue was informed by Mr Michael Butler that he had been appointed receiver to Bradford Productions and that the firm had no assets.

Mr Brendan Crawford, a Revenue inspector attached to the investigation branch, removed the Bradford records from Mr Butler's office and subjected them to a detailed examination.

Mr Crawford and the late Mr Peadar Dunne started working on the case. Mr Crawford, who gave evidence to the Circuit Court in March, said Forde was a party in O'Sullivan Forde Productions, which was not a party to the case. Forde was involved in the film production industry and received £10 million from various production companies, he said.

In February 1997 Forde was interviewed in the Kilkenny Tax Office, after being cautioned. The interview lasted four hours and Forde did not want to be accompanied by a solicitor. He said he wanted to help the Revenue. During the interview Forde said he retained some money which should have been forwarded to the Revenue because some film extras were being subjected to emergency taxation, and might have been entitled to a refund. He decided to keep some of the money so the company would be in funds, he said.

During his evidence Mr Crawford told of showing tax forms to Forde for July 1994 and August 1994. The combined PRSI and PAYE under declaration for July was £199,500. For August it was £194,000.

Mr Crawford said Forde said the under-declarations were not "scientifically produced" and that he wanted to make sure sufficient funds were available if he was required to make refunds. No refunds were ever made and the amounts were not remitted by Forde.

Under declarations for the months June 1994 to November 1994 came to £1.022 million. Mr Crawford told the court there was no prospect of recovering this money. He said £279,000 had been moved from Bradford Productions by Forde and placed into his practice account. He did not continue with this line of evidence as it did not concern the matter before the court. Bradford was now believed to be without assets, he said.

Mr Crawford told the court that £166,000 was due to Forde from O'Sullivan Forde Productions and that Revenue was claiming £133,000 PAYE of this. But the receiver to Bradford Productions was also claiming these funds.