Revenue overstepped powers on licence

The Revenue overstepped its powers of demand for information from a Co Sligo oil supplier in his licence renewal application to sell home and auto fuel and the cheaper Vat-reduced dyed diesel, the High Court decided yesterday.

Mr Justice David Keane’s reserved judgement will significantly restrict the Revenue Commissioners’ ability to insist on the production of information beyond what they “may reasonably require” for the granting of trading licences.

McPartland Oils Limited, of Deep Water Quay, Finisklin, Co Sligo, and its director Damien McPartland, were granted an order quashing the decision of the commissioners refusing the licences.

Mr Justice Keane said Revenue began a company audit in June 2013 that six months later was upgraded to an investigation following the detection of an alleged offence of trading without a licence at its Manorhamilton, Co Leitrim, premises.

In November last year, the commissioners had raised a Vat assessment in excess of €800,000 against the company and instituted criminal proceedings for an alleged offence of dealing in auto fuel without a licence at Manorhamilton. The company and Mr McPartland denied the charges which had yet to be determined.

The court had to decide if Revenue could operate the licensing regime as an ancillary investigative tool and use a refusal of licences as a sanction for failure to co-operate with them. The firm maintained it had satisfied its obligation to provide the necessary information for its licence renewal.

The judge said Revenue already had a wide array of measures in place to address matters of public policy. He also said Revenue acted beyond their powers in requiring information sought for the purpose of an inquiry into whether there had been a fraudulent evasion of Vat.