Questions for Burke on tax matter

Mr Ray Burke is to be questioned by the Flood tribunal on his intervention with the Revenue Commissioners on behalf of a Brennan…

Mr Ray Burke is to be questioned by the Flood tribunal on his intervention with the Revenue Commissioners on behalf of a Brennan and McGowan company in 1989 while he was Minister for Industry and Commerce, after efforts by an accountant to reduce the firm's outstanding tax bill had failed.

Bardon Estates had a "serious problem" with the Revenue, Mr Patrick Hanratty SC told the inquiry. Brennan and McGowan engaged an accountant from Stokes Kennedy Crowley to sort out matters but the Revenue "stuck to its guns".

The issue concerned when the company had begun trading, Mr Hanratty said. "The Revenue Commissioners dug in their heels and said they would not change and charged the tax on the basis of their assessment."

But Mr Burke phoned the chairman of the Revenue Commissioners, counsel said, and made represenations on behalf of his friends, Mr Joe McGowan and Mr Tom Brennan.

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The Revenue chairman sent a letter to Mr Burke on April 7th, 1989, "setting out the Revenue Commissioners' stall".

The question for Mr Burke to answer, said the tribunal counsel, was "what could he bring to the table on behalf of Bardon Estates" that the accountant could not, unless it was his "influence and authority" as a Cabinet Minister.

Correspondence from the Revenue Commissioners on this issue was sent to Mr Tom Brennan on this occasion, Mr Hanratty said.