Lowry took out second mortgage to settle tax
His refrigeration company, Garuda Ltd, paid €1.26 million, while Mr Lowry's personal bill ran to €173,000 under settlement proposals yet to be approved formally, the Moriarty Tribunal heard yesterday.
The tax payments arose mainly from monies paid by Dunnes Stores and by businessman Ben Dunne, both to Mr Lowry and his company, for refrigeration services to the supermarket group. The payments came to light at the McCracken Tribunal in 1997.
An Independent TD for Tipperary North, Mr Lowry resigned as Fine Gael Minister for Transport, Energy and Communications when it emerged former supermarket boss Mr Dunne had arranged for Dunnes Stores to pay nearly £400,000 (€507,895) for renovations to the Lowry family home at Holycross, Co Tipperary.
Tribunal lawyer Jacqueline O'Brien SC indicated Mr Lowry faces the possibility of criminal proceedings over his tax affairs.
Speaking to reporters, however, Mr Lowry expressed faith in the independence of the Office of the Director of Public Prosecutions and pledged to defend himself in the event of a prosecution being brought.
"I remortgaged my house for €550,000 in 2003," Mr Lowry told journalists outside Dublin Castle.
"From the outset in 1997, I made it clear to my advisers that I wanted to take responsibility for it, irrespective of the circumstances under which Ben Dunne conducted the work on my house.
"It was difficult because of the restrictions the Revenue placed on me, the legal threats that they placed. But ultimately we settled and I'm satisfied.
"It's a weight off my shoulders and it has been extremely difficult. Let's put it this way - it's an extremely expensive house."
Mr Lowry said he was always anxious to protect his company, which employed up to 40 people directly and indirectly.
"My financial affairs are under control and my company is trading successfully again. So hopefully I have all this in the past," said Mr Lowry.
Senior Revenue official Aidan Nolan defended the taxman's handling of Mr Lowry's affairs. It emerged Revenue had waived more than €440,000 due by Garuda when told the firm risked collapse if forced to pay the full amount.
Mr Nolan, principal officer in the investigations branch, explained that while Mr Lowry wished to take responsibility for the Dunnes payments, all the documentation indicated Garuda as the taxable entity.
He told Ms O'Brien if Mr Lowry and Garuda had been in a position to settle in 1997 it would not have cost as much. Revenue computed interest up to the date it had received each payment.
