A claim that a Dublin man could benefit under the 1993 tax amnesty was rejected by the Criminal Assets Bureau during an application for judgment for nearly £2 million against Mr Gerry Hutch at the High Court yesterday.
CAB is seeking judgment for £1,984,626 in respect of a number of years from 1988-99 but excluding 1994-95. The sum is made up of an assessment for £782,080 for income tax and £1,202,545 in interest up to February 3rd last.
In an affidavit, a self-employed tax consultant, Mr John McGrattan, said he had been retained by Mr Hutch in relation to tax matters. He believed Mr Hutch had been tax-compliant in all years since 1990 and in accordance with the terms of the Income Tax Act to the year ending April 5th, 1998.
He believed Mr Hutch had the benefit of the 1993 tax amnesty which afforded him a defence to all attempts to reassess Mr Hutch for tax for the years before that ending April 5th, 1994.
To Mr McGrattan's knowledge and by an inspection of his client's papers, no approach had ever been made against him under the appropriate provisions of the Act disputing his entitlement to such amnesty.
Mr McGrattan said all of the aggregated estimated assessments of the inspector of taxes related to taxable periods before 1996-97.
He said the appropriate legislation affecting these was Section 416 of the Income Tax Act under which there was no reference to the power of an inspector of taxes to refuse Mr Hutch his appeal against the assessment when it had been made within the stated time strictures, 30 days.
The submission that Mr Hutch was entitled to benefit under the 1993 tax amnesty was rejected by Mr Richard Nesbitt SC, for CAB. He said the amnesty could not relate to anything before April 5th, 1991.
A CAB legal officer, Mr Barry Galvin, in an affidavit said a claim by Mr McGrattan that the assessments served on Mr Hutch imposed a liability in excess of £5 million was incorrect.
The total amount due for tax and interest on foot of assessments of December 4th, 1998, amounted to £1,984,626. The amount due for tax and interest to February 24th last on foot of an assessment dated June 13th, 1997, amounted to £1,526,560. Those sums totalled £3,511,187.
That latter assessment was appealed to the Appeal Commissioners but was subsequently con firmed by them on February 22nd last.
That decision was then appealed to the Circuit Court by Mr Hutch. Enforcement proceedings by way of summary summons in the High Court were issued on March 3rd last.
The hearing continues today.