Tribunal notifies taxman over ‘bogus records’ claim

THE Employment Appeals Tribunal is to notify the Revenue Commissioners about evidence from a recent hearing which alleged a businessman created bogus expense records to avoid paying tax and PRSI.

The EAT issued a ruling ordering Dundalk estate agent and mortgage broker James Cumiskey to pay €25,000 to a former employee for wrongful dismissal.

The owner of Cumiskey Real Estate, with an address at Jenkinstown, Dundalk, Co Louth, faces an investigation by tax officials.

Karen Browne, a former employee of Mr Cumiskey who worked in both sides of the business, told the EAT false travel expenses were made up every three months on a bogus claim sheet. Ms Browne gave evidence she had not travelled to places stated on claim sheets presented to the tribunal. However, she said in order to receive commission owed to her, she had to complete the mileage sheets for the same amount — a claim rejected by lawyers for Mr Cumiskey.

The tribunal heard employees of both Mr Cumiskey’s mortgage company and estate agency purchased houses which were then sold on to other buyers.

EAT chairman James Flanagan said the tribunal had examined documents in light of evidence Mr Cumiskey’s estate agency was engaged exclusively in the sale of properties on behalf of one local developer.

Mr Flanagan said the tribunal had a mandatory, statutory obligation to bring matters concerning non-compliance with tax legislation to the attention of the Revenue Commissioners.

Mr Cumiskey told the EAT he operated an estate agency in a personal capacity and his company carried on the business of a mortgage broker as there is a prohibition on an individual working as an estate agent and mortgage broker.

The Dundalk businessman — a former committee member of the Professional Insurance Broker Association — claimed to be the largest independent broker outside Dublin. He insisted he had terminated Ms Browne’s contract of employment by reason of redundancy in June 2008.

He blamed the downturn in the property industry.

However, Ms Browne of Racecourse Road, Dundalk, claimed she had faced allegations at the same time of passing on confidential business information to a third party which she denied.

She believed she was let go for disciplinary reasons as no professional accounts had been produced to show Mr Cumiskey’s estate agency business was in financial difficulty.

The EAT said it did not regard the timing of the “so-called redundancies” as a mere coincidence. The tribunal ruled Ms Browne was unfairly dismissed.