Plumber jailed for defrauding Revenue

A DUBLIN plumbing and heating specialist who defrauded the Revenue of over €44,000 in VAT for a construction project eight years ago has been jailed for nine months.

Sole trader Thomas McGrath (46) still owes the €44,486 for unpaid VAT returns and false VAT repayment claims dating from 2001 to 2003.

Revenue inspector Patrick Faughnan told Colm Ó Briain, prosecuting, that McGrath had made all of his outstanding VAT returns in the last two months but he had yet to pay over any of the money.

McGrath, a married father-of-one of Mercer House, Mercer Street, pleaded guilty at Dublin Circuit Criminal Court to sample counts of failing to keep full and true VAT records between May 2001 and February 2002, failing to pay €12,133 VAT for July/August 2001, failing to pay €8,465 VAT for July/August 2002, and failing to pay €2,917 VAT for May/June 2003.

He also pleaded guilty to further counts of delivering an incorrect VAT return to the collector general on April 29th, 2002, and wrongfully claiming a repayment of €1,714 VAT for January/February 2003.

McGrath has one previous conviction for failing to submit income tax returns for 2001, 2002 and 2003, for which he was fined in the District Court.

Judge Patrick McCartan said that McGrath’s “scheme of dishonesty”, of making false returns and claiming false repayments, was “criminal from beginning to end”.

The judge accepted there was no indication that McGrath lavishly gained from the dishonesty but said he would mark the offence with an immediate custodial sentence.

He imposed a nine-month sentence on each count, to run concurrently.

Mr Faughnan told Mr Ó Briain that the offences stemmed from an “off-the-books” €346,275 construction job.

The inspector of taxes said a colleague began a Revenue audit on McGrath after spotting certain lodgements in his bank account, and the Revenue got a warrant to search his home after more investigation.

McGrath handed over documents and his laptop, and admitted he had charged VAT on the construction job but had not notified his accountant.