Profits fall at Lowry’s firm

THE refrigeration company owned by former Fine Gael minister Michael Lowry, Garuda, saw pre-tax profits fall slightly to €454,815 last year.

Turnover in the year to the end of December 2007 rose from just under €6 million in 2006 to €6.22m, according to accounts. The directors of Garuda said the main threats facing the company are competitors within the industry and increasing labour costs. The company had net assets at the end of 2007 of €1.46m compared with €1.1m in 2006.

In September last year it was revealed Mr Lowry, who is now an independent Tipperary TD, made a €1.4m settlement to end the Revenue Commissioners’ investigation of his tax affairs. The Revenue found Garuda had underpaid VAT, PRSI and PAYE of €706,612. In addition to this, the Revenue hit the independent TD with interest and penalties of €554,638.

Mr Lowry also made an individual settlement of €192,129 for under-declaring his income tax.

The investigation into Mr Lowry’s affairs began following the findings of the McCracken Tribunal in 1997, which found Dunnes Stores had paid out nearly £400,000 for the refurbishment work on Mr Lowry’s house. Mr Justice Brian McCracken found that method of payment “must have been made with a view to assisting him to evade tax”.