Revenue official admits Dunnes error

A SENIOR tax official has admitted he was wrong to think the Revenue Commissioners had an agreement that Dunnes Stores would not be liable for any future tax on the group’s family trust.

Tadhg O’Connell of the Revenue’s anti-avoidance unit told the Moriarty Tribunal yesterday he was mistaken in forming the view that another Revenue official had accepted that such an agreement had been reached. Dunnes Stores accountant Noel Fox informed the tax authorities in 1996 that the trustees would not be liable for tax as a result of being paid a dividend of £2.2 million. He claimed they were not exposed to income tax as the former Revenue chairman, Seamus Paircéir, had made an agreement with the trust that no further similar tax liabilities would arise as a result of a tax settlement in 1987.

The tribunal is investigating how the Dunnes Stores trustees had their bill for capital gains tax reduced by £22.8m in 1987 following a meeting between Mr Paircéir and supermarket owner Ben Dunne, which was held at the request of then Taoiseach Charles Haughey.