Five Dublin men sentenced for subcontractor tax repayment fraud

Five Dublin men who took part in a tax repayment fraud have received suspended sentences and/or fines from Judge Katherine Delahunt at Dublin Circuit Criminal Court.

David Payne (26), Cushlawn Park, Paul Byrne (27), Glenview Park, and James O'Connell (39), Killinarden Estate, all Tallaght; Ronan Fitzpatrick (26), Monastery Gate Villas, Clondalkin; and Stephen Rowe (41) of Pearse Gardens, Sallynoggin, pleaded guilty to falsely claiming repayment of tax to which they were not entitled on dates between March and July 2003.

Judge Delahunt said she accepted that all five had co-operated fully with the Revenue Commissioners and had made full repayments, apart from Payne who still owed €500.

She noted that Byrne had not benefited financially from the scheme and that O'Connell was a self-employed businessman who would have had a better understanding than the other men about what the scam involved. She was also satisfied that Fitzpatrick was "an innocent abroad" and didn't fully understand the offence.

Judge Delahunt imposed a six-month suspended sentence and a €500 fine on Payne; a €500 fine on Byrne; a nine-month suspended sentence and €750 fine on O'Connell; and six-month suspended sentences each on Fitzpatrick and Rowe.

Judge Delahunt heard that the man behind the scam got more than €22,000 of €26,000 paid out by the Revenue Commissioners to the five men whose names and social welfare details he used. One of them handed over the total €8,697.50 refunded in his name to the individual to whom he owed a debt, while three others kept €2,000 each from the €8,694.00, €8,697.50 and €8,711 respectively paid out in their names.

Judge Delahunt heard that three further cheques, totalling some €26,078, including payment of €8,711.50 to the fourth man were not issued because the scam had been uncovered.

Benedict O Floinn, prosecuting, said the men's names, addresses, tax identity numbers and signatures were used on forms outlining work allegedly done by them as subcontractors for a principal contractor. The fraud organiser filled in the false work details and submitted the forms to the Revenue Commissioners.

Mr O Floinn noted the penalties laid down in the legislation were not more than five years imprisonment and a €126,000 fine.

He said the Commissioners had agreed to accept €2,000 repayments each from Payne, O'Connell, Fitzpatrick and Rowe. The court was told O'Connell paid the first €1,000 and Rowe had made arrangements to pay back €200 per month before the hearing.

Garda Sgt Jim Linihan and Det Garda Patrick Gillick gave evidence of the men's involvement and said they had all co-operated and admitted their roles.

Sgt Linihan agreed with Grainne O'Neill, defending Byrne, that her client had a genuine tax query at the time he was approached by the scam organiser who was "someone he knew since his school days". He would also be in fear of this person who convinced him he could help him recover tax.

Byrne was also told by the individual that he would get a cheque for more than he was due and that the balance would be for other people who didn't have bank accounts.

Sgt Linihan also agreed with Ms O'Neill that Byrne was "surprised" at the details on the claim form sent to the Revenue Commissioners because he worked in Tesco and had never been a subcontractor. No cheque was issued to Byrne because the scam had been uncovered.

Sgt Linihan agreed with Claire Millrine, for Payne, that her client didn't know about the wider consequences of the scheme.

Det Garda Gillick agreed with James Dwyer, for O'Connell and Fitzpatrick, that up to 80 prosecutions could arise from this particular scam and that the men had played minor roles in it. Most of the prosecutions were dealt with summarily in the District Court.

Justin McQuade, defending Rowe, said his client had "succumbed to the temptation of easy money" and was not the brains behind the fraud.