Revenue seeks to overturn UK bankruptcy status of car dealer

A Longford car dealer said to owe nearly €5 million in unpaid taxes is facing an unprecedented attempt to overturn his bankruptcy…

A Longford car dealer said to owe nearly €5 million in unpaid taxes is facing an unprecedented attempt to overturn his bankruptcy status in Northern Ireland.

Lawyers for the Revenue Commissioners brought a challenge to the validity of the order made against John Alex Kane. It is believed to be the first time the Irish tax authority has sought to annul a bankruptcy secured outside the State's borders.

An order rescinding the earlier determination was made at the High Court in Belfast last week.

The case is understood to hinge on whether Mr Kane lives and works north or south of the Border. The motor trader, who has had an address at Granard, Co Longford, was declared bankrupt in Belfast in June.

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Under UK insolvency law the period of bankruptcy typically lasts for a year. But a much more onerous term of up to 12 years applies in the Republic.

The Irish Revenue Commissioners has now formally applied to the Northern Ireland High Court to have the order annulled.

Press had been excluded from a hearing in Belfast last week due to objections raised by Mr Kane.

The case was adjourned until January 28th.