Court dismisses Foster and Allen’s appeal against €6m Revenue bill

LEGENDARY musical duo Foster and Allen’s challenge against demands by Revenue Commissioners for approximately €3 million each for unpaid taxes and penalties have been dismissed by the High Court.

Revenue sought summary judgment for €3.389m against Anthony Allen, of Kileenatoor, Mount Temple, Co Westmeath, for unpaid income taxes and penalties between 1986 and 1997 — approximately €1m unpaid taxes and the remainder penalties. Mr Allen opposed the application on the basis he has a bona fide defence to the demand and the matter should go to full hearing.

In a separate motion, Michael Foster, of Walshtown, Mullingar, Co Westmeath, asked the court to set aside a summary judgment for €2.947m for unpaid taxes — approximately €1m unpaid taxes and the remainder penalties — from 1986 to 2002 obtained against him by Revenue in December 2008.

Revenue had opposed the musicians’ applications.

Yesterday Mr Justice John Hedigan dismissed Mr Foster’s application after finding it was out of time and granted judgment against Mr Allen on the grounds he had failed to make out a defence that had any realistic chance of success.

Mr Justice Hedigan, who noted that the musicians had brought “great joy” to many over the years, said he was sorry but the court was satisfied to rule against them.

The judge in striking out Mr Foster’s bid to set aside the 2008 judgment against him said it was “a hopeless application. The judge said he had left the judgment against him “sit unchallenged” for a period of two years, which was too long.

Mr Justice Hedigan also granted Revenue judgment of €3.4m against Mr Allen, after ruling he did not raise any bona fida defence with any realistic prospect of success at a full hearing.

In their affidavits, both musicians claimed Revenue was not entitled to judgments against them on grounds including that the basis for income tax liability for each of the years was not set out, they were entitled to claim Artist’s Exemption Relief for the years in question and that notices of assessment for several of the years in question were not issued against them.

They both said they were victims of a fraud perpetrated on them by accountant and barrister Patrick Russell, of Steelstown, Rathcoole, Co Dublin, who they engaged to resolve their tax affairs.