Car dealer freed for agreeing to co-operate with Revenue

A CAR dealer jailed last week for contempt of court orders arising from a judgment obtained by the Revenue against him and his brother over €10 million in unpaid taxes has been freed after promising to provide information on his assets to the Revenue.

After John Kane, also known as Alex Kane, gave the undertaking yesterday, his brother Pauraig (sic), who also faced jail, gave a similar promise. Counsel Gerard Ryan said both were anxious to comply with all court orders.

Mr Justice Peter Kelly accepted the undertakings and expressions of remorse from both brothers, who operated SUV dealerships in Granard, Co Longford, but warned them their “cross-Border car racket” was at an end and any further breach of the court’s orders would lead to them spending considerably longer periods in jail.

The judge advised both men to “make their peace” with the Revenue and put their business on a proper and legitimate footing, saying the “game is up” about operating it any other way.

Both men are to make certain payments to the Revenue arising from the breach of the court orders and have also undertaken to provide information about their assets. On that basis, the proceedings against them have come to an end with liberty to re-enter to both sides, but freezing orders over their assets are to remain in place.

The Revenue had brought the contempt proceedings out of concern, its counsel Anthony Collins said last week, about future breaches of the order given the brothers’ behaviour to date.

John Kane was jailed last week for seven days for contempt by Mr Justice Kelly after he was told of “flagrant” and continuing disregard of the freezing orders by Mr Kane and conduct including providing false invoices to the receiver appointed over his business and assets.

Contempt proceedings against Pauraig Kane were adjourned and yesterday Mr Kane told the judge he was prepared to provide any information sought by the Revenue and to abide by the court orders.

The court had heard of a litany of incidents since the freezing order was granted, including false invoices being given to the Revenue-appointed receiver who was also told vehicles were on loan when they were in fact sold.

Other vehicles were recorded as sold to persons who, on investigation, did not exist, the court was told.

John Kane, a father of four young children, admitted breach of the orders and apologised. He said he had had to pay mortgages and bills and was also obliged to honour warranty commitments relating to vehicles.