ICTU in talks with Revenue over interest and penalties on tax debt

The ICTU, the umbrella body for the trade union movement, is to enter into settlement negotiations with the Revenue Commissioners about interest and penalties on a tax debt.

The Revenue has been seeking £115,000 (€146,000) in relation to £88,000 in tax received from the ICTU in 1998, which the tax authorities argue should have been paid earlier.

ICTU general secretary Mr David Begg sought and was given authority by the ICTU's executive council on Wednesday to enter into negotiations with the Revenue to settle the argument.

The tax debt paid in 1998 arose from interest earned on investments made over the 10 previous years by ICTU. The Revenue has said these earnings were not included in ICTU's tax returns during the period. ICTU's then auditor says they were. Revenue wants to impose interest and penalties in relation to the alleged delay.

Mr Begg has decided that as the matter cannot be proven either way it should be settled. "If we were in business selling widgets that would be fine; we would fight the issue," said Mr Begg. "But we are ICTU and we cannot be involved in a dispute with the Revenue."

The money, which was invested to earn the interest, comprised of union affiliation fees placed in short-term bonds before being drawn down.

The dispute with the Revenue came to Mr Begg's attention after he sought a review of the ICTU's finances following his recent appointment as general secretary. Congress "can't afford" the £115,000 the Revenue is seeking, he said.

Congress incurred significant debt in its move from Raglan Road, Ballsbridge, Dublin, to Parnell Square. The Raglan Road property was sold for £903,000 and congress bought 31 and 32 Parnell Square. Renovation costs have turned out to be "several times" the original estimate and the total cost for the purchase and renovation of the properties was £1.9 million. There is a £600,000 mortgage on the properties which have been restored to a very high standard. The move allowed congress house a number of elements of its organisation together.