A Co Tipperary farmer, who alleges he received bad advice from Allied Irish Banks not to avail of the 1988 tax amnesty, claimed in the High Court yesterday that senior counsel for the bank was trying to insult him by describing him as a "tax cheat".
Mr Michael Gayson (67), Racecourse House, Racecourse Cross, Cashel, said it was never proven he was a tax cheat and he had not cheated on anybody.
Mr Gayson was being cross-examined on the third day of his action for damages against AIB. He alleges that, had he availed of the 1988 amnesty, he would have had to pay £84,000 and not £175,000 (which included penalties of £60,000) to the Revenue authorities in 1991. He claims he was advised by a bank official not to avail of the amnesty.
AIB denies Mr Gayson's claims and alternatively pleads a person guilty of illegality should not benefit from his own wrongdoing.
Mr Gayson told an earlier hearing the retired manager of the Cashel branch, Mr Denis Murphy, advised him to put any spare money into a trust for his children which Mr Gayson would not be allowed touch.
He understood the trust would be looked after by the bank and monies or interest would go towards the education of his seven children. He claimed Mr Murphy told him the fund would be tax free.
Yesterday, Mr Gayson said he expressed shock and surprise when the new branch manager, Mr Silke, told him in 1991 that DIRT would have to be applied to the fund and should have been paid all along.
Mr Gayson said the decision that he had to pay £175,000 had a desperate effect on his family. The amount was published in the newspapers. Two auctioneers made offers to buy his 195-acre farm, possibly presuming he had to sell to pay the Revenue Commissioners. He said he was very bitter and felt badly let down by the bank. In reply to questions from Mr Colm Allen SC, for AIB, Mr Gayson said it would be correct to say he had been exposed as a tax cheat, but responsibility for that lay with AIB. He denied he had concealed the existence of the fund from his accountant.
Mr Allen said Mr Gayson wanted the court to give him money for being a cheat. Mr Gayson said Mr Allen was trying to insult him and said it had never been proved he was a tax cheat.
Mr Allen said the Revenue had published details of his tax cheating. Mr Gayson replied this was as a result of the former AIB manager, Mr Murphy, misleading him.
Mr Allen asked if Mr Gayson had thought of suing the Revenue. Mr Gayson said the Revenue had proved with the aid of the bank there had been no trust fund and he had been fooled all those years. How could he have appealed when the bank said it was not a trust, he asked.
Mr Allen put to Mr Gayson there had been a number of withdrawals from the fund. Mr Gay son said a £2,000 withdrawal had been at the request of his daughters to give his wife who was ill a birthday present; another of £3,000 had been to invest for the benefit of a daughter; two other withdrawals, £6,675 and £5,000, had been to buy cars for two daughters.
The hearing continues.