ANALYSIS: Sentencing for tax offences is dominated by the ruling handed down for the disgraced former assistant Dublin city and county manager, George Redmond, in December 2000.
When Mr Redmond was convicted in the Circuit Court for failing to submit tax returns over a ten-year period, he was fined €7,500. The DPP appealed the decision, and sought a custodial sentence.
Before the Court of Criminal Appeal the DPP argued that the sentence imposed on Mr Redmond, of Castleknock, Co Dublin, was too lenient. The Circuit Court had heard that Mr Redmond had paid €782,000 in tax, interest and penalties. Mr Redmond had co-operated with the Criminal Assets Bureau and had sold his home in order to settle, the court heard.
In a lengthy judgement, the appeal court argued that while the penalties imposed might be on the low side, there was no error in principle. It was important to distinguish between the failure to pay the tax, and the failure to make returns. Mr Redmond had already paid penalties when settling his tax bill, the court ruled.
This now governs how courts tend to sentence tax offenders. If the person before the court has already settled his or her tax bill, is a first offender and has been co-operative, then that person is unlikely to be sent to jail.
An exception to this has been the treatment of the former minister, Ray Burke. Earlier this year he was sent to jail for six months for failing to make tax returns.
Judge Desmond Hogan at the Dublin Circuit Criminal Court noted that Burke, as a member of the Oireachtas, had been a participant in formulating the 1983 Finance Act under the provisions of which he was prosecuted. Mr Burke had abused his position of trust.
However, if the courts have adopted a policy of not jailing people who have settled with the Revenue (including paying interest and penalties), that does not mean that there is no point in bringing people to court.
"I think it acts as a deterrent. You have to prosecute a few of them," said one Revenue source. "Also, it helps when it comes to getting people to pay up."
Hundreds of people are caught by the Revenue each year, many of them in relation to very significant amounts of money, yet relatively few people are charged. The key factor that decides who is going to be charged is the availability or otherwise of evidence.
Myles Gillespie is the second person to be sent to jail this year for tax offences. In March John Devereux, Kisha, Broadway, Co Wexford, was given a three-month sentence in the District Court in Enniscorthy, Co Wexford in relation to failing to keep proper records, the evasion of duty and the submission of incorrect VAT returns. A fine of €7,400 was also imposed.
In June the Limerick Circuit Court ordered Daniel Joseph Leahy (73), a retired farmer from Ballycommane, Tournafulla, Co Limerick, to pay a fine of €125,000 before September 17th or to face two years in prison. Mr Leahy must also pay his outstanding liability of €118,917 within the same period.
Mr Leahy had pleaded guilty to submitting incorrect returns.
Also in June Dublin dentist Martin Vincent Canny was fined €4,500 in the Dublin District Court in relation to the filing of incorrect returns.
In March the District Court in Portlaoise, Co Laois, sentenced Thomas Hynes, O'Moore Place, Portlaoise, to 240 hours of community service. Mr Hynes was convicted in relation to the abuse of a sub-contractor's certificate.
In January the Dublin District Court imposed a fine of €10,800 on Brendan Burke, of Cherryfield Avenue, Ranelagh, Dublin. Mr Burke was also ordered to present himself for a report on his suitability to serve 120 hours community service in lieu of a three-month prison sentence. Mr Burke was subsequently ordered to serve the community service.
The offences involved the submission of incorrect returns and other offences.
