Tribunal to quiz former revenue chief over Dunne

MAJOR questions will be raised over whether Ben Dunne received financial payback from former Taoiseach Charles J Haughey after a tribunal heard yesterday that the Dunne family had their tax bill cut by £22.8 million in the aftermath of meetings with the Revenue initiated by Mr Haughey.

The Moriarty Tribunal has so far uncovered payments totalling £8.5m to Mr Haughey including almost £1.9m from Dunnes Stores and Mr Dunne in the period 1987-1993.

Within 15 days of Mr Dunne giving Mr Haughey stg£282,500 in 1987, the Revenue Commissioners informed Mr Dunne that the tax bill on the group's family trust had been cut by £22.8m.

The cut in the tax bill followed meetings between Mr Dunne and the chairman of the Revenue Commissioners, Seamus Paircéir, held at the request of Mr Haughey.

It emerged yesterday that the trust's initial tax bill of £38.8m was further reduced to zero upon appeal during a period when Mr Paircéir was hired as a tax advisor by Mr Dunne following his retirement from the Revenue.

The Moriarty Tribunal will hear evidence over the next fortnight about Mr Paircéir's decision as Revenue chairman to take "a lead role" in the tax affairs of the Dunnes Stores trust as well as Mr Haughey's intervention in the matter.

It will also examine the decision of Mr Paircéir to waive a sum of £62,450 in May 1987 off a tax settlement of £3.56m which Dunnes Stores had already agreed to pay.

During the first public sitting of the inquiry in 15 months yesterday, tribunal barrister Jacqueline O'Brien SC said the McCracken Tribunal established to investigate large payments by Mr Dunne to the former Taoiseach was never told about the meetings between the supermarket boss and the Revenue chairman.

Mr Paircéir has informed the Moriarty Tribunal that he did not tell the earlier inquiry about such meetings as he did not believe it relevant to the information which the McCracken legal team had sought from him.

Ms O'Brien said the inquiry wished to find out the need for Mr Haughey's intervention when Mr Paircéir had personally been dealing with Dunnes Stores' accountant, Frank Bowen, about the trust's tax matters for the previous two years.

It will also examine why Dunnes Stores claimed Mr Paircéir had agreed that the group's trustees and beneficiaries would not be liable for any future tax after reaching a settlement with Revenue in 1987.

Lawyers for Mr Haughey, who has prostate cancer, informed the tribunal earlier this month he is "gravely ill" and unable to issue any instructions on the matter to his legal team.

It is understood that Mr Paircéir will tell the inquiry that he has no recollection of the former Taoiseach asking him to meet Mr Dunne in 1987.

Tribunal chairman Mr Justice Michael Moriarty indicated that it is nearing the end of public hearings.