Retired farmer must pay Revenue nearly €250,000

A 73-year-old retired farmer, who failed to declare money held in bogus non-resident accounts, must pay the Revenue Commissioners nearly €250,000 within three months or face two years in jail.

Daniel Joseph Leahy of Tournafulla, Co Limerick, was appearing yesterday before Limerick Circuit Court in the first prosecution of its kind under a 1993 tax amnesty.

Last month, Mr Leahy pleaded guilty to seven counts of filing incorrect farm profile return forms, which relate to the non-declaration of three bogus non-resident bank accounts.

The pensioner also pleaded guilty to an eighth charge of breaching the Waiver of Certain Taxes Interest and Penalties Acts 1993.

All the offences relate to tax periods dating from 1980 to 1995.

Senior inspector with the Revenue Commissioners, Liam Liston, told the court that the defendant had failed to avail of a tax amnesty incentive in 1993, under which his tax liability would have been just €33,500.

His current tax liability stands at €118,917 but with interest and penalties this figure has now risen to a massive €648,101, the court heard.

Evidence was heard that that Mr Leahy had three bogus non-resident accounts using an uncle's address in New York. The court heard that there was a total of £240,000 ( €304,800 ) in these accounts and that the defendant withdrew this money in cash over a three-week period in 1998.

The defendant had claimed that this money withdrawn in 1998 was given to charity, family members and his grandchildren. However, the senior inspector with the Revenue Commissioners told the court yesterday that Mr Leahy's grandchildren hadn't even been born at that time.

An investigation by the Revenue Commissioners also uncovered a Barclay's off-shore account in the Isle of Man containing £121,183.25. Before sentencing, Judge Carroll Moran remarked that Mr Leahy could have been considered "very stupid" given that under the 1993 tax amnesty he could have settled his case with the Revenue Commissioners for a fraction of the bill that he now faced.

Judge Moran ordered Mr Leahy to pay a fine of €125,000 before September 17th or face two years in prison.

Mr Leahy must also pay his outstanding tax liability of €118,917 within the same three-month period.