Former Cavan MD falsified tax payments, Court is told

A Former Cavan MD falsified tax payments, involving more than £165,000 in order to pay the wages of the highly-paid staff, Dublin Circuit Criminal Court was told yesterday.

The court heard the company had been particularly hit from 1992 by the knock-on effects of the Gulf War and high interest rates. Brian Williams (50) had not benefited financially from the offences and the board of directors had not been aware of the understating of tax payments.

Judge Jospeh Mathews imposed a six month suspended sentence on Williams, a qualified accountant with a Masters degree in business, for fradulent trading and confirmed an early consent order by the High Court banning Williams from acting as a company director for five years.

Judge Mathews did not impose any custodial or monetary penalties on charges relating to specific counts of understating VAT, PRSI and PAYE returns. Williams was bound to keep the peace for three years.

"These offences were different in degree and kind to many such cases which have come before this and other courts. They were committed with a mixture of motives, which were well-intentioned, to keep the company going", said Judge Mathews.

Williams, a married father of one, of Inchicore Road, Dublin had affirmed signed District Court guilty pleas to making false VAT, PRSI and PAYE returns during the period from late 1992 to early 1994. He also admitted a charge of fraudulent trading and the total amount involved was £165,657.97.

Detective Garda Denis O'Sullivan, of the Garda Bureau of Fraud Investigations, told prosecution counsel Mr Shane Murphy BL that there was "no great science" in what Williams had done. Inaccurate bi-monthly returns were filed but the correct figures were included in the annual returns. Dual accounts were kept, one showing the true amount due to the Revenue Commissioners and the other with the understated figures.

The business was particularly affected by the down-turn in trade caused by the Gulf War and high interest rates from 1992.

A complaint was initially made by letter to the Revenue Commissioners because of facts uncovered while the company was in receivership. The Garda and the tax investigation branch of the commissioners launched a joint investigation and the company's financial affairs were examined.

Defence counsel Mr Brendan Mulhall BL said his client had not gained from the fraud and there had been no attempt to evade justice by destroying incriminating documents. Williams career had been destroyed. A retired company director Robert Welsh said Williams had worked for him from 1974 until he took up the position with Cavan Crystal.

He had been a very good worker and there was no question of understating payments or anything like that during his employment with him, the witness said.

Williams had helped to turn around the company and he was attempting to do the same with Cavan Crystal, Mr Welsh added.