VEC strikes six-figure tax settlement after mismanagement
The agreement followed a comprehensive review of the organisation, triggered by an audit of a Youthreach centre in Macroom.
The Macroom audit found teachers and tutors had been paid for hours without the deduction of PAYE or PRSI.
The tax deal was struck in June, and has been signed off by the Cork Education and Training Board, which replaced CCVEC in July.
CCVEC agreed to pay €115,000, which included penalties, to get its affairs in order.
While the original inquiry focused on Macroom, the Revenue audit found problems across the organisation with how tutors were paid and how tax was billed for consultants on capital projects. There were also liabilities for money paid to school sports’ referees and to special needs assistants.
CCVEC was found to have underpaid €95,300 in taxes and built up another €10,000 in interest and penalty payments. Payments to referees covering after-school matches accounted for €11,000 of the bill.
A number of proposals were put forward to rectify its accounting systems, including taxing an allowance given to staff who provide an office at their home. Tax must also be deducted from referees’ fees at source.
The tax probe began following a complaint by the former chair of its audit committee, Cllr Humphrey Deegan of Clonakilty.
The CEO of Cork Education and Training Board, Ted Owens, said while it regretted there was any liability, it had to be viewed in the context of an organisation that had a budget in excess of €270m over three years.
