Publican given jail sentence in tax case

A publican who tried to avoid paying gift tax when he bought his bar from his grandfather was yesterday sentenced to six months in jail.

Judge Desmond A. Zaidan handed down the sentence to Brendan Whoriskey, who has already paid almost half of €43,597 due in taxes and penalties on the transaction and given post-dated cheques for the remaining amount to the Revenue Commissioners.

The judge told Whoriskey, who runs the Travellers Rest pub at Cashelard, Co Donegal, that he had committed a most serious offence.

He said: "You cannot fiddle with the taxes by playing ducks and drakes with the system."

The judge handed down the sentence - half of which he suspended - at Ballyshannon District Court after suggesting Whoriskey might wish to make a substantial donation to charity.

"And I mean substantial," he added as solicitor John Murray moved to confer with Whoriskey, reminding them that the offence carries a penalty of 12 months' jail and a €3,000 fine.

When Mr Murray said the defence was willing to donate €3,000 to charity the judge said: "I don't think your client got the message. He will now."

He imposed the prison sentence and fixed bail in the event of an appeal at €13,000 - Whoriskey's own surety of €3,000 and an independent surety of €10,000.

Fergus Dempsey, assistant principal with the criminal investigation unit of the Revenue Commissioners, said that, when Whoriskey bought the pub from his grandfather, Vincent Whoriskey, it was officially valued at €285,691.

He paid €152,369, leaving a difference of €133,322. The difference was effectively a gift from the vendor.

Whoriskey described himself in his tax return as a nephew, which meant he wouldn't have to pay tax on the gift. When it came to light that he was a grandson he was liable for tax of €16,837.

That increased, with interest and penalties for non-payment, to a liability of €43,597.

Whoriskey, who admitted making an incorrect tax return on April 25th, 2005, lodged notice of appeal against sentence immediately after the hearing.