The agent who originally sourced the Jackson Way land under investigation by the tribunal believed he was being cheated of a £1 million finder's fee, his tax consultant has said. Paul Cullen reports.
The agent, Mr Sam Stanley, obtained the land at Carrickmines in south Dublin on behalf of businessman Mr Jim Kennedy in the late 1980s. In return for his services, he expected to receive a £1 million fee or 20 per cent of the equity.
Yesterday, his tax consultant, Mr Noel Corcoran, said Mr Stanley "gave off" to him at the time that he was not getting his due entitlements from the deal. Mr Stanley was of the view that he was being "done out" of his fee. Mr Corcoran said his client was led to believe he would get a share of the lands in return for his work; he was getting a "free carry".
When he complained that he was being cheated, Mr Corcoran advised him to sue. Mr Stanley said he was intending to sue.
However, Mr Corcoran added, his client was forced into accepting his share through an Isle of Man company, because Mr Kennedy said ownership of the land had been transferred to another Isle of Man company, Paisley Park Investments. He believed he would not get his share from the deal unless he adopted this approach.
Mr Corcoran said he advised his client that there was no tax benefit involved in setting up an Isle of Man company because its assets - the Carrickmines lands - would still be subject to Irish taxes.
Mr Stanley told him he wasn't interested in saving tax; all he was interested in was getting his share of the land.
However, under Isle of Man laws, Mr Stanley as a non-resident was not entitled to set up an Isle of Man company which would own another company in the jurisdiction. For this reason, Mr Corcoran set up another shelf company, Xenon Ltd, in the British Virgin Islands.
This company held 20 per cent of Paisley Park but Mr Stanley's share was diluted to 1 per cent when the latter company was liquidated and its assets transferred to Jackson Way in the early 1990s. Mr Stanley still maintains he is due a 20 per cent share of Jackson Way and its land at Carrickmines.
Yesterday's proceedings were delayed for over an hour after lawyers for Mr John Caldwell, one of the owners of Jackson Way, protested when the tribunal changed the schedule of witnesses. Mr Ian Finlay SC, for Mr Caldwell, said he didn't have enough time to prepare for the cross-examination of two of the rescheduled witnesses.
However, the tribunal decided to press ahead with the revised schedule, which will see former Government press secretary Mr Frank Dunlop back in the witness box tomorrow.