Review of Murphy Cab tax case

A brother of Thomas "Slab" Murphy has brought a High Court challenge over the Criminal Asset Bureau's refusal to disclose to him the information it used in raising tax assessments against him of some €1.5 million over an 18-year period.

Frank Murphy, a farmer, of Ballybinaby, Hackballscross, Dundalk, Co Louth, yesterday secured leave to bring judicial review proceedings against the Appeal Commissioners of the Revenue Commissioners and Cab arising from the tax assessments raised by Cab covering the years 1988 to 2005.

He said Cab had told him in a letter of June last that documents seized by it in searches of the home of his brother, Patrick Murphy, indicated that a business was being carried out from that premises and that "substantial" payments were recorded as being paid to him. He said Cab had refused to identify what documents recorded such payments or how it had arrived at figures included in its income tax assessments.

Mr Murphy said he was tax compliant and had filed tax returns for each of the tax years in question since 1992. He said he had availed of the tax amnesty in 1992 for earlier years.

He said he was assessed for €1.5 million tax and was also advised he could face interest and penalties in a similar amount.

He was seeking to appeal the assessments on grounds they were excessive and did not reflect the income earned by him in the years in question but had been refused access to the documents used by Cab in making the assessments.

If the assessments were upheld, he would be in debt for the rest of his life and resulting judgment proceedings by Cab would be the subject of great media interest and would inevitably lead to him being portrayed as a criminal pariah and a person who acquired substantial wealth but never paid tax on it, he said.

In such circumstances, it was manifestly unfair to be refused access to the documents on which the assessments were raised, he said.

Michael O'Higgins SC, with Cian Ferriter, for Mr Murphy, yesterday secured leave from Mr Justice Michael Peart to bring the action in which Mr Murphy wants to quash the Appeal Commissioners' refusal to make an order directing Cab to disclose the documents it relied upon when assessing tax in his case.

The judge also granted a stay on the hearing of Mr Murphy's appeal to the commissioners pending the outcome of the judicial review hearing. The appeal had been listed for hearing on December 14th.

In the action, Mr Murphy contends the failure to order Cab to disclose the information breaches his constitutional right to fair procedures and his rights under the European Convention on Human Rights Act. He said he will be hampered in bringing his appeals unless he has the information being sought.

In an affidavit, he said that Cab can only have jurisdiction to raise assessments which relate to the proceeds of crime or suspected criminal activity and that the assessments amount to an allegation that he has been involved in, or has profited from, criminal activity.

Because the Appeal Commissioner is engaged in determining a criminal charge against him - that he has been engaged in illegal activity generating profit - Mr Murphy said he is entitled to full pre-hearing disclosure of the information and documents sought. He said he fully denied such allegations.

He said Cab had served the assessment notices on him on December 1st, 2006 and that a total €1.5 million was assessed on him for the 18 years from 1988/89 to 2005. If the assessments were upheld, interest and penalties of a similar amount would also be payable. There was an onus on him in his appeal to show the Cab assessments were wrong but he could not do so without the documents.