Revenue approach ‘changed’ after Haughey request

THE Revenue Commissioners adopted “a clear change in approach and emphasis” in their negotiations with Dunnes Stores about the supermarket group’s tax bill following an intervention by Charles Haughey in 1987.

The Moriarty Tribunal concluded Mr Haughey had acted with a view to improperly intervening in the tax affairs of Dunnes Stores, shortly after his election as Taoiseach, because of large payments he received from Ben Dunne.

Mr Haughey asked the then Revenue chairman, Seamus Paircéir to meet Mr Dunne to discuss his company’s tax liability. Dunnes Stores had already held largely unsuccessful meetings with Revenue officials about the company trust’s tax liabilities during 1985 and 1986.

It was facing a capital gains tax bill of almost £39m which was close to half the entire value of the supermarket group at the time. The report said Mr Haughey’s role was particularly noteworthy given the state of the public finances in 1987.

It claimed his persistence in intervening with successive chairmen of the Revenue Commissioners was only matched by Mr Dunne’s persistence in asking Mr Haughey to intervene in his company’s tax situation.

Revenue eventually agreed to reduce Dunnes Stores tax bill to just £16m, while the Appeals Commissioners ultimately ruled that the family trust had no tax liability at all.

Mr Justice Michael Moriarty said Mr Haughey’s intervention and Revenue’s complete U-turn in its dealings with Dunnes Stores could not be regarded as “purely coincidental”.

He said Mr Haughey as head of the Government had a particular duty “to maintain the paramountcy of Revenue in collecting taxes”. As such, Mr Haughey should have studiously avoided unnecessary contact with Revenue officials.