Tribunal criticises Revenue failures

ATTEMPTS by the Revenue Commissioners to collect tax owed by Charles Haughey over almost two decades have been labelled “unimpressive” by the Moriarty Tribunal.

It claimed the tax authorities often allowed the former Taoiseach’s liabilities to drift because they seemed reluctant to confront Mr Haughey over his failure to pay due taxes.

The tribunal also criticised Revenue officials for failing to impose any interest or penalties on the former Fianna Fáil leader in relation to tax arrears.

Although tribunal chairman, Mr Justice Michael Moriarty accepted that it wasn’t easy for tax officials to deal with “a very powerful political leader, whose cooperation and disclosure left a lot to be desired”, he nevertheless claimed their apparent passivity was “inordinate”.

However, the tribunal said it was satisfied that the Revenue Commissioners neither sought to nor gave any untowardly favourable treatment to the late politician.

In contrast, it found that claims by Mr Haughey, a qualified accountant, that he was reliant on advisors to deal with his tax affairs, were “neither justifiable nor credible”.

Mr Justice Moriarty acknowledged that Revenue’s approach to Mr Haughey was significantly more thorough and systematic in relation to taxes owing on payments uncovered by the McCracken Tribunal, in 1997.

Such an approach “made eminent sense and was overdue”, according to the tribunal.

It also commended Revenue for the manner in which it reached a €5 million tax settlement with Mr Haughey in 2003 in relation to further payments he received from wealthy businessmen, which were revealed by the inquiry’s own investigations.

The report said Mr Haughey had historically discussed income tax with the Revenue on the basis that his sole source of income was from his entitlements as an elected representative.

Mr Justice Moriarty said Revenue had accepted Mr Haughey’s word without challenge despite the clear discrepancy between his income and his lifestyle, of which Revenue officials were aware because they had kept a file of press cuttings about the politician.