C2 certificate used to evade tax

A builder allowed a tax clearance certificate to be used by other contractors to evade tax, resulting in a net loss to the Revenue of more than €630,000, a district court has been told.

Mr Thomas Hynes, 46 O'Moore Place, misused his C2 tax clearance certificate, Portlaoise District Court heard yesterday.

The C2 form is a document normally issued to subcontractors for the building industry. The court was told that Mr Hynes allowed his card to be used by other contractors to evade tax.

Mr John Flynn, inspector of taxes, told Judge Mary Martin that the accused, on the advice of another contractor, applied for and was granted a C2 certificate.

He was then brought to Ratoath in Co Meath and subsequently to another building site in Dublin where he signed documents enabling others to avail of his certificate.

Mr Flynn said that the holder of a certificate was paid monies gross. Without a certificate, 35 per cent would be deducted by the main contractor. In total, €1.2 million was paid out on foot of the certificate, resulting in a net loss to Revenue of €636,000.

Mr Hynes pleaded guilty to three charges - two of misusing the certificate and one of disposing of the certificate.

Mr Flynn told the court that the penalty was €1,265 and/or six months imprisonment in each case, if convicted.

Judge Martin said the financial penalty did not reflect the seriousness of the crime. She said a custodial sentence was no solution.

In reply to Mr Declan Breen, solicitor defending, Mr Flynn said the accused was paid a token amount for the use of his certificate - thought to be €23,000.

Judge Martin adjourned the case to March 10th for probation reports with a view to community service.