Revenue Commissioners have asked the High Court to lift its suspension of a six-month term for contempt imposed on a car dealer who owes €5.2 million in taxes.
Mr Justice Sean Ryan imposed the sentence on Pauraig Kane, formerly an operator of Kane Motors of Granard, Co Longford, in 2012 after the Revenue applied to jail him for contempt of court orders granted in May 2009. The 2009 order required him not to be involved in Kanes’ business until he had paid the €5.2 million debt to Revenue, which obtained a High Court judgment against him on the basis of a 2004 tax assessment.
The Revenue claimed he was part of a hoax in which vehicles continued to be sold from the Kanes’ yard using false invoices and third-party cheques.
After finding contempt, Mr Justice Ryan suspended the six-month sentence on condition the Kane yard be cleared of all vehicles, other than those being dealt with by his wife and Mr Kane during his employment there.
Nine properties to sell
Mr Kane was also not to deal in third-party cheques and undertook to sell nine properties to help pay off the Revenue debt.
Yesterday, Gary McCarthy SC, for Revenue, said Mr Kane had not complied with the conditions and the suspension should be lifted.
Some who bought cars told Revenue Mr Kane asked for cheques to be made to third parties and 30 vehicles whose ownership could not be determined were in the Kane yard during a Revenue inspection, he said.
Mr Kane, represented by Gerry Ryan, denies he deliberately breached the terms on which the sentence was suspended. The case has been adjourned to next week.