Ex-politician faces jail after conviction for taxation fraud

The political career of a former Fianna Fáil TD, convicted of obtaining a tax clearance cert under false pretences, was "effectively…

The political career of a former Fianna Fáil TD, convicted of obtaining a tax clearance cert under false pretences, was "effectively brought to an end" when details of a criminal investigation into his tax affairs first emerged, a court has heard.

Michael Collins, from Patrickswell, Co Limerick, was found guilty at Limerick Circuit Court yesterday after a jury of seven man and five women took less than 45 minutes to consider its verdict.

Collins, a former TD for Limerick West and a member of a well-known political family, is the first elected member of Dáil Éireann to be prosecuted arising out of a complaint from the Standards in Public Office Commission.

The 66-year-old had pleaded not guilty to obtaining the tax clearance certificate under false pretences in May 2002.

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At the outset of the trial the jury was told that according to The Standards in Public Office Act 2001, any person elected to Dáil Éireann must furnish a tax clearance certificate to the Standards in Public Office Commission within nine months of election.

Collins, having been elected to the Dáil for the second time in 2002, applied for a tax clearance certificate in May of that year and in the form accompanying his application signed a declaration that he was tax compliant.

It was the State's case that Collins held a bogus non-resident account at the AIB branch in Kilmallock, Co Limerick, at the time he applied for the tax clearance cert.

It was argued that certain tax liabilities arose out of the existence of this account.

The court heard that the account was opened in 1984 in the name of Ann and Joseph Collins with an address at London Road, Croydon, Surrey, England.

John O'Keefe, a manager with the AIB in Kilmallock, told the court that an investigation by the bank into the holders of non-resident accounts identified Michael Collins and his wife Una as the beneficial holders of one such account.

The court heard that a deposit of £10,000 was made to open the account in May 1984 and in February 1987, £1,000 was withdrawn from the account and subsequently lodged into another account in the name of Michael Collins.

Mr O'Keefe also said in evidence that Mr Collins never "disputed ownership of the account" when he discussed the matter with him.

Witnesses from the Revenue Commissioners gave evidence that Collins later admitted holding the account and it was found that the extent of his tax liabilities was €130,602 , which he subsequently paid.

Yesterday Judge Carroll Moran said there were a number of key issues which the jury needed to consider.

These were: whether or not Collins was the beneficial owner of the account, if he knew he was not tax compliant when he made the declaration and if he deliberately intended to mislead.

After the guilty verdict was returned counsel for the defence Paul O'Higgins SC told Judge Moran that his client's political career had "effectively ended" when details of the investigation into his tax affairs first emerged.

"Apart from the humiliation which he brought upon himself and the public shame which will follow he has also effectively paid for it with his career," said Mr O'Higgins.

He said his client would have stood and been elected in the 2007 general election but because of what happened he did not run.

"It effectively brought an end to his career, a man who was very respected on all political sides," said Mr O'Higgins.

The court also heard details of Collins's health problems. Collins is diabetic and suffers from high blood pressure and anxiety, particularly over the past 2½ years, said his lawyer.

Former mayor of Limerick Fine Gael councillor Gus O'Driscoll gave evidence on behalf of the defence and told Judge Moran that he had the "pleasure" of knowing and working with Michael Collins for the past 40 years.

He described Collins as a devoted husband and father to a "wonderful family that Limerick city and county should be proud of".

He said despite being members of opposing parties he had enormous respect for Collins and the work he had done towards the development of Limerick and services for older people and the less well off.

Judge Moran described the case as "very serious" and said he had a lot to consider.

He adjourned sentencing until October 9th.

Collins's wife Una, daughters Michelle and Deirdre and son James sat beside him in court throughout the trial.

Friends and supporters including former Kerry manager Paídí Ó Sé also attended during the week.

Collins faces up to five years in prison and/or an unlimited fine.

He gave no reaction to yesterday's verdict and remained composed with his family after it was read out.