Bertie brushes off black economy blunder

THE Taoiseach tried to brush off any embarrassment last night over public remarks he made about his past life in the black economy and not paying tax.

As the Revenue Commissioners published the largest ever list of settlements with tax dodgers, worth €28.6 million, Bertie Ahern denied he was condoning tax avoidance or working on the black market.

At a social function earlier this week, Mr Ahern told the audience that in his younger days in the 1970s he had jobs in which he did not pay any tax.

Following queries about Mr Ahern’s speech at the event in Portmarnock, Co Dublin, the Taoiseach’s spokesperson moved to prevent any damage by stressing his off-the-cuff remarks were not in any way to be taken seriously.

According to his spokesperson, Mr Ahern was bemused by the whole issue as it was intended to be a light-hearted remark at a gathering where he was supposed to be enjoying himself.

“Obviously the Taoiseach didn’t intend to in any way condone the black economy. If the Taoiseach is not allowed to laugh and joke with friends in this manner, it is a very sad day indeed,” the spokesperson said.

At the 21st anniversary of the Portmarnock Sports and Leisure Centre on Wednesday night, Mr Ahern told how he couldn’t afford to buy a house in the area in the early 1970s as he was working as a clerk and earning buttons.

The mood of the 200-strong crowd at the function, which followed the Ireland vs Georgia football international, was described as jovial by people in attendance. Mr Ahern also made jokes about previous occasions when he was in the centre and how he was just a Minister of State when it was opened back in 1982.

Yesterday’s list of 285 tax dodgers includes 230 bogus non-resident settlements. By far the largest of these was made by company director John Murphy who paid 4.89m in two separate settlements.

A payment of €2.2m was made by Mr Murphy of Bishopscourt, Grantstown, Waterford to settle a bogus non-resident account and under-declared income tax. A second payment of €2.65m was made by his furnishings business,

JM Carpets of Mayors Walk, Waterford. Mr Murphy is a director of JM Carpets along with Noeleen Murphy. Interest and penalties of €3.2m were twice the original tax liability of €1.68m.

Other large payments include €624,000 by fisherman Joseph Doherty of Meenbanad, Burtonport, Co Donegal in settlement of a bogus non-resident account together with under-declared income and capital gains tax. Of this, €479,000 related to interest and penalties while €146,000 was the tax liability.

Company director Gearóid MacGerailt, with an address at Bóthar Baile Atha Cliath, Droichead Atha, Co Louth, made a €623,000 settlement in respect of a bogus non-resident account and under-declaration of income tax.

The Revenue Commissioners have identified 40,000 bogus non-resident accounts, identifying 80,000 individuals. Letters have been sent to account holders who did not avail of 2001’s amnesty asking them to explain why they had a non-resident account and to settle with the Revenue.