Burke may face jail if found guilty of tax charge

Mr Ray Burke, a former Fianna Fáil minister, faces a term of imprisonment of up to eight years and a fine if found guilty of …

Mr Ray Burke, a former Fianna Fáil minister, faces a term of imprisonment of up to eight years and a fine if found guilty of making false tax returns in relation to the 1993 tax amnesty. Conor Lally reports

Mr Burke, a former minister for justice and foreign affairs, was yesterday charged at Dublin District Court with making false returns on or around December 15th, 1993, under Section 9 of the Waiver of Certain Tax, Interest and Penalties Act, 1993.

Mr Burke's appearance at Court 46 in the Bridewell courthouse, Dublin, took place after the former politician presented himself by appointment to gardaí at the Bridewell just before 2 p.m. He was accompanied by his solicitor, Mr Vincent Shannon.

Det Insp Denis O'Leary, who is attached to the Criminal Assets Bureau (CAB), cautioned Mr Burke and put the charges to him. He replied "not guilty".

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Mr Burke then went to Court 46, beside the Bridewell Garda station, to appear before Judge David Anderson.

Judge Anderson was told Mr Burke, Griffith Downs, Drumcondra, would be applying for free legal aid and had no intention of leaving the jurisdiction. Mr Burke was released on his own bail, set at €600 cash. Gardaí did not object.

Mr Burke paid the money and spoke to confirm it was his signature on the bail paperwork and also to confirm that he understood the terms of the bail agreement.

He was remanded to appear on January 19th when the book of evidence is expected to be served.

The tax amnesty legislation sets out a comprehensive list of penalties if someone who availed of it is proven to have broken its terms.

The penalties include a term of imprisonment of up to eight years, depending on the sums involved in any breach and depending on whether the case is tried summarily or on indictment.

In a summary trial, which usually happens in respect of small sums of money, a maximum term of imprisonment of up to 12 months and/or a fine of up to £1,200 (€1,500) could be handed down.

The maximum penalties would apply if Mr Burke was tried on indictment in respect of a sum of £100,000 (€127,000) or more. If found guilty he could face a prison term of up to eight years and/or a fine of up to twice the sum involved.

Last month, Mr Burke was served by CAB with a tax demand of over €2 million in respect of income it claims he received but did not declare to Revenue.

CAB has been investigating the former minister since September 2002, shortly after the interim report of the Flood tribunal found he received corrupt payments totalling almost €250,000. The acquisition of his former home in Swords was also found to be corrupt.

The year-long investigation by the bureau identified between €300,000 and €400,000 in income from 1973 to the early 1990s on which it believes Mr Burke did not pay income tax.

The rest of the €2 million-plus sum being demanded from him is made up of penalties and interest in respect of the core amount.

Mr Burke is the second figure who featured in the planning and payments to politicians tribunals to be pursued by CAB on criminal matters through the courts in as many months.

At different times in his political career, Mr Burke held a number of senior ministerial portfolios, including environment, energy, communications, commerce and industry, justice, and foreign affairs. His last Cabinet position was in foreign affairs, having been appointed in 1997 by the Taoiseach, Mr Ahern.

Under the Act governing the 1993 tax amnesty, the Waiver of Certain Tax, Interest and Penalties Act, applicants were required to state among other things that the money they were declaring had not been earned unlawfully (apart from evading tax).

If they knowingly fail to make a full return on all monies on which tax was outstanding, and on where the money had come from, applicants are subject to penalties ranging from a small fine to a substantial prison sentence.