BANK OF Scotland Ireland yesterday appointed a receiver to South Dublin Motors as a legal dispute between the dealer and the Revenue remained unresolved.
South Dublin Motors operates two substantial dealerships in Rathfarnham and Tallaght in the capital and a rental business.
The company made more than €4 million in profit in the 18 months to the end of last July on a €28 million turnover. It is understood that, as a result of the uncertainty over a High Court case involving the company and the Revenue Commissioners, the bank became concerned about security it holds over 1,500 vehicles and appointed Kieran Wallace of KPMG as receiver to the business yesterday.
The company has been in dispute with Revenue Commissioners over €449,000 in VAT payments, and the tax authority took High Court proceedings at the end of March to have it wound up.
The company yesterday sought to have these proceedings struck out on the grounds that it has paid all its tax liabilities and is in fact owed a VAT refund of more than €400,000.
The High Court adjourned the matter for three weeks.
Affidavits submitted to the court by managing director, John Traynor, show the company has a number of claims against State public transport company CIÉ.
The total due from the State-owned group runs into six figures and a letter from the motor dealer’s solicitor Gerald Kean, to CIÉ’s lawyers shows it is owed €249,461 for servicing vehicles.
South Dublin Motors has sought a number of meetings with CIÉ to discuss the matter, and considered taking legal action to pursue its claim.
The motor dealer’s sales ran to €48 million in 2008 and 2009, and it has continued to trade profitably during the recession. The company is a Ford dealer and operates a substantial fleet business.
