A leisure sector operator and his family had interests over more than 12 years in 18 companies which ran 11 bars, nightclubs and hotels. Of these, three companies are currently "live" while the rest are dissolved or liquidated.
Companies Registration Office filings requirements have not been fully met for any company. All of the companies were partly or wholly non-compliant for taxes. Some submitted tax returns but did not make payments. Some were registered for Corporation Tax but did not make returns.
"A receiver of one of the operator's companies generated and paid over substantial amounts of tax while running a business which had not made any returns while controlled by the operator."
VAT audits of a number of the operator's companies identified underpayments and evasion but each was treated on a single case basis and was not linked to the operator.
A nightclub business which is still in operation is run by a "fourth generation" company which received a tax clearance certificate even though it is not registered for VAT or PAYE. The previous owner of the business was registered for these taxes.
In all, over the years the operator has been the recipient of write-offs by the Revenue totalling €520,000. The fact that a debt has been written off by the Revenue is not communicated to the person or entity from whom the tax is owed and the tax debt can be revived if new information comes to light.
The C&AG also found that the operator had conducted his business even though some of his companies did not have an excise licence. They "sheltered" under a licence owned by unrelated operators of other bars in a complex. The Revenue told the C&AG that the limited liability rules can conflict with efforts to tighten the rules on tax clearance certificates. However in the light of the evidence produced by the C&AG, a working group has been established to prepare proposals which would link the tax clearance requirement to the actual operation of a pub.