A former Fianna Fáil TD has gone on trial for obtaining a tax clearance cert by false pretences in one of the first prosecutions of its kind in this country.
Michael Collins (66), Red House Hill, Patrickswell, Co Limerick, claimed he was tax compliant at a time when he actually held a bogus non-resident account at a Co Limerick bank, Limerick Circuit Court heard yesterday.
The jury at the trial were told that under the Standards in Public Office Act, 2001, all members of the Dáil were obliged to obtain tax clearance certificates within nine months of their election.
Mr Collins has pleaded not guilty to obtaining a tax clearance certificate by false pretences in an application to the Collector General in 2002.
In his outline of the prosecution's case, counsel for the State, Tom O'Connell SC said Mr Collins, having being elected to the Dáil on May 17th, 2002, was required to obtain a tax clearance certificate.
Mr O'Connell said the new legislation was enacted so that those involved in law-making would conform "to a certain standard you would expect".
He told the court that Mr Collins applied for the tax clearance cert in accordance with the Act, and in his application, the former Fianna Fáil TD declared that to the "best of my knowledge and belief, the information contained in the form is true and correct".
A signed statutory declaration that he was in compliance with his various obligations was also submitted by Mr Collins, and this was witnessed by Limerick Fianna Fáil TD Peter Power, a practising solicitor, the court was told.
A tax clearance cert was subsequently issued to Mr Collins on May 30th, 2002, the court heard.
It is the prosecution's case that Mr Collins held a bogus non-resident account at the AIB in Kilmallock, Co Limerick, at the time he applied for the tax clearance cert and that certain tax liabilities arose out of the existence of this account.
A number of witnesses from the Revenue Commissioners, including Patrick Costelloe, said they would not have issued Mr Collins with the tax clearance certificate had they known about the existence of the bogus account.
Mr Costelloe, who has been employed by the Revenue since 1980, told the court that he didn't know of any other "prosecutions of this kind".
The court heard that Mr Collins's account at the AIB in Kilmallock, Co Limerick, was opened in 1984 in the name of Ann and Joseph Collins, with an address in Croydon, Surrey, England.
Ger Howard, principal officer with the Revenue Commissioners, explained to the court that "a lot of Irish people" in the 1980s held bogus non-resident accounts, so they were able to avoid certain tax obligations.
He said these account holders gave false names and addresses, with the knowledge of the banks, and in 2000 the Revenue estimated that between 25,000 and 50,000 Irish people used these types of accounts.
Mr Howard told the court that an amnesty for bogus account holders was launched in 2001 and those who declared these accounts were guaranteed they would not be prosecuted, their names would not be published, and they would not be liable for a high rate of penalties.
The court heard that Mr Collins did not avail of this scheme. The Revenue subsequently secured High Court orders compelling banks to give them information about bogus account holders.
In January 2003 the Revenue sent out some 177,000 inquiry letters to people, including Mr Collins, stating it had "good reason to believe you have a bogus non-resident account".
Mr Collins subsequently admitted to holding the account and it was found that the extent of his tax liabilities was €130,602, which he subsequently paid.
The case continues today.