A car dealer has been given a suspended sentence after admitting that he did not pay income tax on more than €27,000 of cash found in his home.
Brian Grendon (48), of Rowlagh Park, Clondalkin, Dublin 22, pleaded guilty to a charge of failing to remit income tax payable.
Dublin Circuit Criminal Court was told this charge under the Taxes Consolidation Act 1997 carries a maximum penalty of up to five years’ imprisonment or a fine.
Grendon denied being part of an organised crime group when asked about other seizures of cash and drugs by gardaí. He said the cash found in envelopes in his home was his and was not the proceeds of crime. He denied involvement in crime.
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The court heard it took Grendon 36 hours and a night in a garda station for him to eventually reply “yeah” to the question as to whether all of his cash was legitimate. Grendon replied that he “liked staying in a garda station”.
The court heard a defence proposal made to the Director of Public Prosecutions, and accepted, involved Grendon entering a guilty plea in advance of a trial date.
Prosecution barrister Kate Egan said the proposal was accepted on the basis that the money found reflects the proceeds of income not declared for the purpose of tax.
She confirmed on Wednesday that the figure owed to Revenue, which is calculated based on USC, PRSI, a late filing charge and interest, is €20,477.
Sentencing Grendon, Judge Orla Crowe said he was before her “solely on failure to remit income tax” on cash found at his home.
“Clearly everyone has an obligation to pay income tax for the common good,” she said, adding that it was a considerable amount of cash.
She said the offence was at the “lower end of the scale” and does not warrant a custodial sentence. She imposed an 18-month sentence which she suspended in full on strict conditions for three years.
Det Garda Liam Enniston told the court Grendon’s home was searched on January 19th, 2022. Grendon and his partner were in the house at the time.
Gardaí found eight white envelopes in a wardrobe in Grendon’s bedroom. These contained sums of cash divided into smaller denominations. A small bundle of unwrapped cash was also found. A total of €27,725 was seized.
After caution, Grendon replied that the cash could be from cars and did not belong to his wife or children. He was arrested and later interviewed four times. Grendon largely invoked his right to silence, but did offer some replies.
He denied that the money was the proceeds of crime or money-laundering and said it was the legitimate proceeds of selling cars. He was also asked about a dog grooming business and said it was nothing to do with him.
Grendon told gardaí he did not know other cash found in the house was there. The court was told that gardaí are satisfied this money belonged to Grendon’s wife, who runs her own business, and it was returned to her.
He later said the money he was aware of “could only be from cars” and “it’s from me shipping cars, that’s it”.
It was put to him that this explanation was not true and that gardaí believe the cash to be the proceeds of crime and that “you are a main player in an organised crime group”.
Grendon denied this and said he had been in the car business for 13 years. He said he had a bill with Revenue of €1 million, including penalties, that he was trying to resolve.
After his arrest, Grendon provided a letter from his accountant which outlined that he was the director of a company which had been advised to trade in cash due to difficulties at the time.
Grendon has 24 previous convictions, including 18 for road traffic offences, one for assault causing harm and one for possession of drugs for sale and supply, for which he received a six-year sentence in 2001. The court heard Grendon’s most recent non-driving related offence dates back more than 20 years.
Enniston agreed with defence barrister Keith Spencer that an accountant’s report stated that Grendon was advised to trade in cash as the company fell into difficulties due to the Covid-19 pandemic. It was further accepted that Grendon complied with his bail conditions.
Spencer said the accountant’s report states that Grendon’s company imported and sold cars, was located in Northern Ireland and registered in the UK.
There was an issue with the UK tax authorities during the pandemic and, through no fault of the shareholders or directors, the filing deadline in 2021 was missed, he added.
The company was effectively dissolved in the UK and the bank account was not accessible, with Grendon being advised to trade in cash where he could.
Counsel said his client sought to recover money owing to the company and as there was no bank account, his only alternative was to collect it in cash.
The company was briefly restored, but ultimately dissolved some months later and ceased trading.
Grendon has been in the car trade since 2008, has no addiction issues and has three adult children, the court heard. He is also assisting his mother who has health issues.
Spencer noted that his client originally faced a money-laundering charge, but indicated at every point that these were legitimate funds.
He submitted that this case is at the lower end of the scale and asked the court to consider non-custodial options.
Counsel said the money is available to be forfeited to Revenue and this would be in excess of the tax owed.
He told the court his client was remanded in custody last month on an unrelated matter, for which he intends to apply for bail.
