Anglo asks ex-directors for details on benefits

ANGLO IRISH Bank has sought details of benefits and perks given to former directors of the bank, including performance bonuses, air fares paid for wives and favourable loan rates as part of a Revenue Commissioners audit.

The State-owned bank may seek repayment from the former directors should the bank incur an additional tax charge as a result of the benefits, the bank has said in private correspondence.

The audit is being carried out by the Revenue’s large cases division as part of a wider audit of the tax affairs of 300 directors and executives across the banking sector.

The Revenue is, in particular, examining benefits-in-kind and payments including pension contributions and performance bonuses paid under termination deals.

A spokesman for the Revenue declined to comment. The bank also declined to comment.

Last May, Anglo wrote to former director Tom Browne, who managed the bank’s Irish lending division until 2007, informing him of the audit and asking him for details relating to several benefits provided to him.

“We would very much welcome your co-operation in providing any background information you may have as to the circumstances of the benefit, and how the matter was dealt with in your own tax returns,” Anglo’s chief financial officer Maarten van Eden wrote to Mr Browne on May 6th, 2010.

The letter – seen by The Irish Times– raised questions over a €100,000 pension contribution to Mr Browne in December 2005 under a long-term incentive plan. The bank also asked Mr Browne for details of a 2007 performance bonus of €600,000 paid as part of a termination payment.

“Please indicate how this benefit was treated in your income tax return,” wrote Mr Van Eden.

The bank asked for details of two private air fares for his wife – dated March 2004 and April 2007 for €364 and €271 respectively.

Mr Browne did not respond to calls or emails seeking comment.

Mr Van Eden wrote in his letter that Anglo had to be satisfied about the “appropriateness of the benefits and sums involved”.

“The bank may consider seeking restitution from you in respect of either or both – however, that will be reviewed on a case-by-case basis,” he said.

Several other Anglo directors are understood to have received queries on benefits from the bank.