Builder in tax scam gets community service

A builder is facing 240 hours of community service after being convicted of allowing his revenue certificate to be used in a €630,000 tax scam.

Judge Mary Martin of Portlaoise District Court yesterday sentenced Thomas Hynes, of 46 O'Moore Place, Portlaoise, to 240 hours community service for allowing a number of un-named individuals to use his revenue certificate to dodge tax.

He pleaded guilty to the offence at a hearing before the same judge four weeks ago. She made the community service order in lieu of a six-month jail sentence. He has to complete the 240 hours within the next 12 months.

The court heard that an un-named individual, who transpired to be a drug dealer, convinced Hynes in 2001 to apply for a C2 certificate. Hynes was not involved in any activities connected with drug dealing.

C2s allow building contractors to pay their self-employed sub contractors without deducting tax. If sub contractors do not hold C2s, then 35 per cent tax must be automatically deducted from their gross earnings.

Hynes was registered as a cleaning services and security sub contractor.

However, the court heard that, in return for a €23,000 payment, he allowed a number of other individuals to use the certificate on two occasions in 2001.

Only the individual to whom the certificate is issued can avail of it. Allowing somebody else to use it is an offence.

A total of €1.2 million was paid out to the individuals on foot of Hynes' C2. The maximum estimated loss to the Revenue Commissioners as a result was €636,000. At the original hearing, Revenue inspector John Flynn told the court that the accused facilitated the fraud but was not the main beneficiary.

Hynes also pleaded guilty to improperly disposing of the certificate. Holders are obliged to return them to the Revenue Commissioners.

However, last month the court heard that gardaí subsequently discovered a copy of the certificate in the drug dealer's possession.

The Revenue Commissioners believe that the C2 system is vulnerable to abuse and are monitoring a number of cases in the building industry.

Earlier this week, Judge Donnchadh Ó Buachalla in Enniscorthy District Court sentenced John Devereux, of Kisha, Broadway, Co Wexford, to three months after he was convicted of three charges of failing to keep proper records, evasion of duty and submitting incorrect VAT returns for November/December 2002.

He also fined Devereux €7,400 and his company, Rosslare Oils, €4,000.