A Co Kildare construction firm and its managing director, who defrauded the Revenue Commissioners of VAT and PAYE returns over a seven-year period, were fined a total of £12,000 at Newbridge District Court yesterday. The managing director was also given a six-month suspended jail sentence.
Ballymany Construction and Patrick Byrne had pleaded guilty to 22 sample charges of fraud involving £242,908 in PAYE payments and £61,980 in VAT.
Mr John Flynn, of the investigation branch of the Revenue Commissioners, said the fraud was uncovered in the course of an audit in June 2000.
A Portion of the money for houses sold between 1991 and 1998 had been diverted and the company had engaged a firm of solicitors which was instructed to make one cheque payable to Ballymany and the other to Mr Byrne.
The solicitors would then write to the auditor for the company and reveal that they had disbursed a certain amount of money to the company and made certain payments.
They made no reference to the additional payments made to Byrne, the court heard.
Judge Morrough Connellan was told the company and Mr Byrne had pleaded guilty to all charges at a very early stage, had co-operated fully, and would continue to co-operate with the Revenue Commissioners.
They had already paid a total of £718,890, made up of £368,197 in interest and £45,734 in penalties, as well as the £304,888 in VAT and taxes.
This was 150 per cent of the amount due, Mr Raymond Fullam SC, for the defendants.
His clients had engaged a specialist accountant who prepared a detailed submission; in effect, the Revenue Commisisoners' work was done for them at his clients' expense.
Byrne had intended setting up a retirement fund, but because of business expansion all this money had to go back into the company and was paid in wages and bonuses to employees. There was no self-aggrandisement as such for Byrne.
State solicitor Ms Geraldine Gilleece, told the court that there was a dispute as to whether the sum paid to the Revenue Commissioners was the entire sum due and there were ongoing discussions.
Judge Connellan described the crime as large-scale fraud and suspended the prison sentence.