A JUDGE has jailed for contempt one of two SUV dealers against whom the Revenue Commissioners earlier this year won unprecedented summary judgment orders for more than €10 million arising from unpaid VAT and interest.
On the application of the Revenue, Mr Justice Peter Kelly yesterday jailed John Kane, also known as Alex Kane, for one week for contempt after he was told of “flagrant” and continuing disregard of freezing orders by Mr Kane and conduct including providing false invoices to the receiver appointed over his business and assets.
Anthony Collins, for the Revenue, earlier outlined a litany of incidents since the freezing order was granted, including an alleged incident where a set of registration plates fell off a land cruiser being driven out of Kane’s premises in Granard, Longford, revealing another set of plates underneath.
The Revenue had had to spend considerable public money investigating all these breaches and there was “almost a fraud on the receiver at one point”.
The Revenue had no confidence that the freezing order would be honoured into the future and had brought the contempt proceedings in an effort to enforce compliance, counsel said.
In evidence, Kane, a father of four young children, admitted breach of the orders and apologised for them.
He said he had had to pay mortgages and bills and was also obliged to honour warranty commitments relating to vehicles.
He knew he was “not 100 per cent across the board”, but he had been trying to run the business himself in recent months after the receiver had left.
Directing that Kane be jailed, Mr Justice Kelly said Kane had attempted to portray himself as a victim, but was no such victim, and was not candid in the witness box.
The judge said Kane was involved in an elaborate car racket on the Border which had generated a lot of money for him.
Mr Justice Kelly said his concern was not punishment, but to ensure future compliance with the court’s order.
A week’s imprisonment would give Kane a chance to reflect on his behaviour and to outline what measure he was prepared to take to comply with the order and co-operate with the Revenue.
