Gardaí discovered evidence of tax evasion by the former Fianna Fáil minister Ray Burke when they searched his home in Dublin, a Garda inspector told Dublin Circuit Criminal Court yesterday.
Burke could face up to five years in jail and a maximum fine of €127,000 for the tax offences to which he pleaded guilty last July. Judge Desmond Hogan adjourned sentencing in the case until January 24th, 2005.
The court heard that gardaí began a major investigation into Burke's tax affairs in October 2000.
Det Insp Denis O'Leary told prosecuting counsel, Mr Patrick Gageby SC, that a search of the former minister's present home uncovered a folder that contained information indicating that Burke had failed to fully declare his income for over nine years.
A folder in Burke's home marked "Building Societies" contained a declaration he had submitted to the Revenue Commissioners making incorrect statements in relation to his taxes.
Insp O'Leary said Burke stated in the declaration that his income from interest-bearing deposit accounts was £5,085 and that this was a full and true statement of income for the period between 1982-1983 to April 5th, 1991.
The court heard from a Revenue official and member of the Criminal Assets Bureau that Burke's actual earnings from interest-bearing deposit accounts in that period were £97,065.
The judge made an order not to reveal the official's identity because he was engaged in the investigation of serious crime. The Act under which the CAB was set up provides for such anonymity, the court heard.
The official, identified only as "Bureau Officer No 6", said the income was generated partly from accounts held in the Isle of Man and Jersey.
Burke was the beneficial owner of accounts he held at the AIB in the Isle of Man and from a Jersey-based company, Caviar Limited. The amount he had earned from the two accounts during the said period amounted to a total of £71,002.
Within the same period, he also earned an additional £26,063 from his Irish interests, bringing the total income to £97,065.
Of this amount, Burke had declared only £5,085 that was generated from an account held at Irish Nationwide Building Society on Camden Street, Dublin.
Under the Amnesty Act, Burke had to pay £762.75, which was 15 per cent of the declared £5,085.
The CAB official told the court it was clear that Burke had grossly underestimated his earnings by £91,980 when the declared amount was deducted.
Mr Gageby said that Burke sent a letter on December 15th, 1993, to the tax authorities that once again underestimated his income for the period between 1991-1992 and 1992-1993 by £24,038.
Bureau Officer No. Six said Burke had failed to declare £13,821 he earned in combined Irish and British interest in 1991-1992 and also failed to declare £10,217 he earned in similarly combined interests between 1992-1993.
This brought the total undeclared income for the period to £24,038 for which he was being prosecuted. Bureau Officer No Six replied "no, it was not" when asked whether Burke's statement of his deposit income was accurate.