A Criminal Assets Bureau claim against a Scotsman, who had been living in Co Mayo, for monies due for alleged unpaid income tax and interest was "premature", the High Court ruled yesterday.
However, Mr Justice O'Sullivan did find the CAB was entitled to a decree for outstanding VAT payments against Mr Lindsay Craft, owner of a windscreen replacement business, with an address at Westport Road, Castlebar, Co Mayo.
The CAB had claimed some £350,000 for alleged arrears of income tax and VAT plus interest. The claim was challenged by lawyers for Mr Craft.
In a reserved judgment, Mr Justice O'Sullivan found that the CAB was entitled to a declaration that Mr Craft was the beneficial owner of monies lodged to two accounts at the Trustee Savings Bank in Castlebar.
Evidence was given of a £100,000 transfer out of one of these accounts to an Isle of Man account in January, 1998 and of £35,000 withdrawn and sent to an associate in Scotland. A further £83,500 was withdrawn in various sums in early 1998, with more than £50,000 being sent to a bank in Scotland.
The judge refused the bureau a declaration that Mr Craft was the owner of the home in Castlebar which he shared with his wife. The house was in the joint names of both Crafts, as were the TSB bank accounts.
The court heard that Mr Craft was arrested at his home on May 7th, 1998 by a team of local gardai, CAB officers and members of the National Drugs Unit. He was suspected of being engaged in trafficking cannabis. On the day of his arrest, Revenue Office members of the CAB completed income tax assessments for £138,000 for 1996/97 and three VAT assessments for March/April, 1995 to November/December, 1997 for £158,000 and these were served on Mr Craft.
Both assessments were appealed later the same month but the appeal was rejected within 48 hours because it was not accompanied by £56,000 which Mr Craft admitted was due.
Mr Justice O'Sullivan said Mr Craft, who came to Ireland in January 1994, was last seen here on July 15th, 1998, during an appearance in court on assault charges. He had told gardai he was leaving the country for the Isle of Man, but not Scotland, where he was being sought on criminal charges.
Mr Craft denied any involvement in drug trafficking.
Refusing the CAB a declaration in respect of the alleged outstanding income tax, the judge said the bureau had claimed that income tax became "due and payable" before it became "final and conclusive". The judge's opinion was the law intended to make the issuing and serving of a demand a precondition to the commencement of proceedings for the recovery of income tax due.