A Galway Businessman who had an offshore account in the Isle of Man containing over £500,000 was convicted on 15 counts of tax evasion at Galway Circuit Court yesterday. He was given a two-year suspended sentence.
Patrick Walsh, of Lisnacree, Frenchfort, Oranmore, pleaded guilty to nine charges of knowingly making incorrect personal income returns and six incorrect returns of Corporation Tax relating to his business, Walsh Wholesale Ltd, Ower, Headford, Co Galway, between 1990 and 1995.
Passing sentence, Judge Joseph Matthews said Walsh had been evading tax for some years.
"If I thought there was one iota of evidence to suggest he had not made full disclosure, he would be serving a substantial prison term", Judge Matthews said.
Two building societies - the Irish Permanent and the First National - also came under the scrutiny of the court after it was revealed that they had failed to make full and frank disclosures to the Revenue Commissioners about the number of accounts Walsh had with them.
Mr Brendan Crawford, of the investigations branch of the Revenue Commissioners, said that branches of the two building societies in Galway had not disclosed "full and frank" details of Walsh's deposit accounts with them.
He had been "shocked and flabbergasted" to learn later that Walsh had five other accounts with the Irish Permanent, beyond the one declared, and two other accounts with the First National on top of the two the society had acknowledged.
Legal proceedings were instituted after Walsh had arranged for a statement of his affairs to go to the Revenue Commissioners.
Walsh himself also made a disclosure of the existence of an Isle of Man deposit account containing approximately £500,000.
Mr Crawford said that Walsh's total liability to the Revenue Commissioners was £1,087,000. Walsh had paid £700,000 of the outstanding amount and had made up the balance by giving them a post-dated cheque.
Mr Paddy MacEntee SC, defending, said that Walsh was currently taking medication for his nerves.
He described him as a hardworking, decent man who had finally come forward and made the disclosures himself on sound legal advice.
As well as the two-year suspended sentence, Judge Matthews imposed penalties of £2,000 on each of the six charges against Walsh's company.