VEC offers to make settlement with Revenue

County Cork VEC has said it is prepared to make a settlement with the Revenue Commissioners for the second time in six years.

At its November meeting, the State body informed members of its committee it will offer to make a self- declaration to Revenue.

The move comes after a Revenue investigation was triggered into improper payment methods for tutors hired by a Co Cork VEC (CCVEC) youthreach project in Macroom.

“A self disclosure by CCVEC has been made to Revenue Commissioners for the purpose of endeavouring to establish if the CCVEC had any liabilities to Revenue. The executive has met officers from Revenue and CCVEC is carrying out an internal review of certain payments as agreed with Revenue,” it said.

It has also emerged that in 2006, CCVEC had to make an extraordinary tax payment of a €71,546.

While it related to the 2006 accounting year, the payment did not emerge at the time because financial statements were only laid before the Oireachtas last year. This was because annual Comptroller and Auditor General audits of CCVEC were put on hold to facilitate a separate inquiry into unauthorised borrowing which was used to fund a failed computer project in Glanmire Community College.

The 2006 financial statements also show CCVEC spent €82,266 on specialist accounting which was not replicated in any other year.

It is not known what prompted the settlement.

The latest engagement with the tax authorities happened after the former chair of CCVEC’s audit committee, Cllr Humphrey Deegan, referred the VSSU audit on the Macroom Youthreach to Revenue.

This audit had found evidence of improper payment practices that saw tutors paid out of allocations for student allowances without any deductions for PAYE and PRSI. In one instance a tutor was paid to teach a class but the cost was recorded as “School of Acting” expense.

The audit said Revenue guidelines specified that lecturers, trainers, and teachers who give a series of one-off classes should be subject to PAYE and PRSI deductions.

Elsewhere a taxi service, operated by a convicted rapist, invoiced Macroom Youthreach but was paid in cash, which the VSSU auditor said was “irregular”.

In a letter to the Department of Education in August, CCVEC said it could not condone the manner in which arrangements were made to pay workers in Macroom and it accepted the VSSU’s report that losses had been incurred as a result.