Two fined over fake tax claims for medical expenses

THE Revenue Commissioners prosecuted six people at Cork District Court yesterday arising out of an investigation where they believed a man was advising people on how to make fraudulent claims for tax rebates for medical expenses.

State solicitor, Edward O’Hanlon, asked Revenue officer Mary Murphy: “Is there a reason these matters have come up now?

“Was there some sort of scam or fraud?”

She replied: “Someone was giving advice in a particular pocket or area of Cork City [on how such claims could be made].”

Six cases were before the court yesterday and evidence was given in two. The other four cases were adjourned until later dates.

Paul Keohane, of Loughmahon Avenue, Cork, pleaded guilty to three counts of claiming a tax relief or exemption to which he was not entitled contrary to the Tax Consolidation Act, where he made a claim for tax relief on health expenses for 2005, 2006 and 2007.

Ms Murphy said that on June 11, 2009, Keohane submitted a claim for tax relief on medical expenses for 2005 to 2007 in the sums of €3,430, €6,980 and €4,750. She said no receipts were submitted with the claim and none were furnished when Revenue asked for them.

Anne McShane, defending, said the defendant had fully co-operated with the probe.

Judge Leo Malone adjourned the question of penalty for six months to allow the defendant time to gather €1,451 to reimburse the Revenue.

Anthony O’Regan, aged 46, of Avenue de Rennes, Mahon, Cork, pleaded guilty to similar charges for the same three years, on the basis of medical expenses in the sums of €2,450, €3,038 and €3,200.

Lillian O’Sullivan, defending, said the defendant repaid the amount rebated to him and by way of background said someone had told him “this was something that could be done and he was led. He had never done anything of a fraudulent nature before. He accepted immediately it was something he should not have done”.

Judge Malone said the minimum fine he had discretion to impose was €1,250 on each charge.