FG wants Taoiseach to clarify if he is tax compliant

Fine Gael has demanded clarification about Bertie Ahern's tax affairs and the manner in which he dealt with the obligation to…

Fine Gael has demanded clarification about Bertie Ahern's tax affairs and the manner in which he dealt with the obligation to provide a declaration about his tax status to the Standards in Public Office Commission (Sipo).

Following a meeting of key party figures in Leinster House yesterday, a spokesman said Fine Gael was examining Mr Ahern's compliance with Sipo requirements for a declaration about his tax affairs.

The spokesman also said the party intended to hold Mr Ahern and the Ministers who criticised the Mahon tribunal to account. This would be done through Private Members' motions in the Dáil and Seanad reaffirming the confidence of the Oireachtas in the tribunal and expressing support for its independence and integrity.

Fine Gael also intends to pursue the issue of whether the Dáil has been misled over Mr Ahern's personal finances and his dealings with the Revenue Commissioners.

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The Irish Times has learned that Mr Ahern has accepted he owes tax arising from his having had free accommodation in his constituency centre, St Luke's, in the early 1990s when he was minister for finance.

Mr Ahern has made what he has described as a voluntary disclosure to the Revenue through his tax representative Des Peelo.

He has also accepted that he owes tax arising from two other matters, but maintained that he does not owe tax arising from what he says were loans received in 1993 and 1994, and a gift he received in Manchester in 1994.

Mr Ahern resided at St Luke's from 1992 to 1995. He was minister for finance from November 1991 to December 1994.

Persons who get free accommodation from their employer must pay income tax on the benefit derived. In non-employer situations, a gift tax charge can arise. The Revenue raised the issue of his accommodation at St Luke's when it wrote a lengthy letter to Mr Ahern in November 2006. Among other matters raised, it asked what positions he held within Fianna Fáil at the time, and who owned St Luke's.

Mr Ahern informed the Revenue that during the period he was joint treasurer and a member of the party's national executive, and was party leader from November 1994.

He confirmed St Luke's was held in trust for the Fianna Fáil constituency operation and named the trustees as Joe Burke, Tim Collins, James Keane (deceased), Des Richardson, and Paddy Reilly (deceased). He produced a copy of the trust deed.

Mr Ahern has also made what he has described as a voluntary disclosure arising from his having rented a house from Manchester-based Micheál Wall from 1995 up to just after he became taoiseach in 1997. Mr Ahern paid £450 per month in rent initially, though this subsequently increased.

Under tax law a tenant who pays rent to a non-resident landlord must retain the equivalent of the standard income tax rate and remit this to the Revenue.

Mr Ahern has also made a number of additional voluntary disclosures, which are understood to include a £5,000 cheque lodged with the Irish Permanent Building Society in January 1994. This matter was mentioned in Mr Ahern's evidence to the tribunal last month. The money's origin is not known.

Mr Ahern is understood to have made a payment on account to the Revenue of slightly less than €70,000. Sources have said he expects this to more than cover any taxes that may arise.

The Revenue has not yet accepted that Mr Ahern has made a voluntary disclosure and is considered unlikely to sign off on its dealings with Mr Ahern until the tribunal has concluded inquiries into aspects of his personal finances.

This is not the first time Mr Ahern has had to review his use of St Luke's. The Taoiseach did not declare its usage as a donation for political purposes in the declaration of members' interests that first applied to TDs in 1997. When this was highlighted in the media, Sipo contacted Mr Ahern who agreed to declare the value of the office.