Court overturns £1.77m CAB judgment

THE Supreme Court yesterday overturned a High Court judgment for £1.77 million (2.25m) granted to the Criminal Assets Bureau in a landmark decision curbing the tax-collecting practices of the Garda agency.

The five-judge court ruled the CAB had not fully complied with standard Revenue procedures in assessing the alleged outstanding taxes of a Dublin man. As a result of the ruling, the CAB will now have to exhaust tax assessment procedures and appeal provisions before seeking judgment from the High Court.

Yesterday’s Supreme Court ruling upheld an appeal by Seán Hunt against a High Court judgment against him for £1.29m (1.6m) in income tax and £480,000 (609,000) in VAT, over a 10-year period.

Mr Hunt, formerly of Ramilles Road, Ballyfermot, but now understood to be living in Spain, was alleged by the CAB to be involved in the illegal importation and sale of tobacco and fireworks. The CAB claimed that over £3m (3.8m) passed through the bank accounts of Mr Hunt and his wife between 1988 and 1998.

Mr Hunt had not made any tax returns over those ten years. His wife, Rosaleen Hunt, claimed social welfare payments from 1990 to 1995, with Mr Hunt named as a dependant. The CAB sought, and was given, judgment for £1.77m against Mr Hunt in the High Court in June 2001, which Mr Hunt appealed to the Supreme Court.

The Supreme Court held the bureau was not entitled to seek such judgment in circumstances where tax assessments in relation to Mr Hunt were not, at the time the proceedings were taken, final and conclusive under the tax legislation. The court also held that no prior demand for payment of the tax alleged to be due had been made by the CAB.

Mr Hunt had also not exhausted his right to appeal against the assessments to the Revenue Appeals Commissioners.

The court also ruled that statements of bank accounts in Mr Hunt’s wife’s name, of which the CAB alleged Mr Hunt was the beneficial owner, were not admissible as they amounted to hearsay evidence. Legal sources yesterday said the CAB had “slipped up” by going to the High Court before the tax procedures had been completed. But sources said the CAB could still collect alleged taxes owed by Mr Hunt by using these procedures. The court listed the Hunt case for mention tomorrow.