IMO pays €120k to Revenue after audit

The Irish Medical Organisation had to pay almost €120,000 to Revenue following an audit, it has confirmed.

The audit took place between 2009-2012 inclusive. In its 2013 annual report, the doctors’ representative body said that, as a result, a settlement of €118,419 was agreed to cover all taxes, interest and penalties.

Another large financial outlay covered by the report was to the organisation’s former chief executive George McNeice.

More than two years ago it emerged that Mr McNeice was stepping down with a settlement totalling nearly €10m.

In the annual report published yesterday, the IMO said a settlement agreement was reached during 2012 between the IMO and the former chief executive.

“Detailed legal advices were received by the organisation in respect of the negotiations leading to the settlement,” it said. “The settlement agreement provides for a termination payment of three year’s salary paid on March 31, 2013, and a pension over a 16-year period, commencing in 2016.”

It said the costs were fully provided for in 2012. The termination payment came to €1,495,850 and the deferred pension commitment came to €2,682,861.

Furthermore, the organisation had its premises at 10-11 Fitzwilliam Place valued in December 2012.

“This valuation was below the cost price of the property and, accordingly, an amount of €2,994,365 had to be written against the reserves of the company,” it said. “In addition, the revaluation reserve which had been created on an earlier uplift of property valuation also had to be written off and this is reflected in the consolidated statement of recognised gains and losses.”

The reduction in the revaluation reserve is put at €1,321,379.

Nonetheless, at the end of 2013 the IMO had reserves of over €3.3m. It was able to report 6,196 members as of December 31. That was 22% higher than the figure for the end of 2012 (5,053).