TD to seek probe into Wallace’s firm

A Government TD is to write to the director of corporate enforcement seeking an investigation into Mick Wallace’s company.

Fine Gael’s Tom Barry, himself a businessman, said it was “completely unacceptable” that Mr Wallace had under-declared tax, and called on him to resign from the Dáil.

“It comes down to the fundamental issue: Lawmakers cannot be lawbreakers,” he said.

Mr Wallace’s company, MJ Wallace Ltd, which is in receivership, was included in the latest Revenue defaulters’ list published yesterday.

It showed MJ Wallace had under-declared €1.4m of Vat and, together with interest and penalties, now owed Revenue €2.133m.

Mr Wallace has admitted the money is unlikely ever to be paid and suggested he under-declared the Vat in a doomed bid to keep the company afloat. The debt attaches to the company and Mr Wallace is not personally liable for the money.

Mr Barry accused Mr Wallace of hiding behind his company, and said the Wexford TD had questions to answer about how he ran MJ Wallace Ltd.

“He’s hiding behind the veil of a limited company. He himself was getting a wage from a company that was completely non-tax compliant. He should resign,” said Mr Barry.

“I’ve no problem with a guy if his business fails… If a guy’s business went, and he tried his best, you can’t blame him for that. But this guy made an obvious choice in that he sold properties, he took the State’s money, he paid himself and his son large wages, and gave the two fingers to the State.”

Defenders of Mr Wallace’s actions have suggested businesses routinely use Vat for cashflow purposes as they juggle bills.

Mr Barry, whose company TB Warehousing specialises in grain drying and storage, said this was an unjustifiable defence.

“I am a businessperson who pays Vat, I pay it every two months, and you know what? It’s hard to pay it at times, but it’s the first thing you do.”

Mr Barry recalled that during last year’s election, he was a fortnight late in paying one Vat bill as he was focused on campaigning. Even though it was just a fortnight late, he had to wait for the payment to go through before he could get the tax-clearance certificate demanded of all TDs at the start of each Dáil term.

He questioned how Mr Wallace could take his seat in the Dáil while knowing he had kept €1.3m from the State.

“I will be writing this week to the director of corporate enforcement, asking him to proceed against Wallace and his company using whatever powers he has, because they’re making a mockery of the genuine people in business.”

A spokesman for the director of corporate enforcement said: “The office does get correspondence from members of the public and indeed members of the Oireachtas from time to time, and obviously we’ll examine anything that comes into the office.”