A MAN who owes the Revenue Commissioners more than €500,000 in VAT and other tax liabilities will be sentenced at Dundalk Circuit Criminal Court tomorrow.
Bernard Brady (43), of Millgrange, Greenore, Co Louth, who was a director of NPJ Sales, at the same address, pleaded guilty to 10 offences relating to unpaid VAT on sales by the company on dates between January 2006 and July 2007.
The court heard that the investigations and prosecutions unit of Customs and Excise in Dublin had examined the records of two cash and carry companies in Northern Ireland that sold soft drinks to the company. The soft drinks were zero-rated for VAT purposes.
However, John Maguire, an investigations officer with the Revenue Commissioners, told Judge Ray Fulham that sales records for NPJ Sales showed that the drinks had been sold on a VAT-inclusive basis to a number of companies in the Republic. The defendant had failed to pay this VAT to the collector general, the court heard. VAT-registered traders dealing with zero-rated supplies have to submit VAT returns on a quarterly basis, the court was told. The court heard 20 shipping containers of branded soft drinks had been purchased. When the Customs officers searched the company offices on February 12th, 2007, the defendant had made a four-page statement to them and confirmed he was a director of the company.
He said he had not been able to pay his VAT liability in this jurisdiction as he needed the money to keep the company solvent.
The company has been in liquidation since April of this year. The defendant, who is married with four children, is now on social welfare. Mr Brady’s overall liability, including outstanding VAT, is €547,938, Mr Maguire said.
Mairéad Carey, defending, showed the court a printout of payments made to Revenue using their online service.
She said Mr Brady was trying to pay back what he owed. However, Mr Maguire said that no payments had been made against the liability related to the charges before the court; that bill is €366,367.
Judge Fulham wanted time to reflect on the case and will pass sentence tomorrow.