Director faces jail for breaking condition of his suspension over Cork firm's unpaid Vat of €340k

A member of the Revenue Commissioners said: “If he kept away from Revenue that would be the most helpful thing he could do.”

Denis O’Rourke, an authorised officer of the Revenue Commissioners, said at the sentencing hearing three years ago, BV Securities Ltd was selling plant and machinery and in the relevant period had €1.95m of sales. On the basis of 46 invoices, the company was liable for €340,000 in Vat. File photo

An 84-year-old man with a suspended jail term hanging over him had the case against him re-entered by the State for the judge to consider revoking the suspension and jailing him.

Michael Grimes was sentenced three years ago for failing to pay almost €340,000 in Vat returns which had been paid to his company by customers. A two-and-a-half-year suspended jail sentence was imposed on him.

Now prosecution barrister, Brendan Kelly, has come back to Cork Circuit Criminal Court to re-enter the case against Michael Grimes of Kilpatrick, Innishannon, County Cork.

However, defence senior counsel Tom Creed complained about the prosecution application saying: “My friend read out the order which had five conditions. I might be able to guess which one of the conditions has been broken (according to the prosecution). But I would like to know that. We need to know which condition was breached.

“It is just not fair. I want to know which of the conditions have been breached. It is a lengthy document (entered by the prosecution in the re-entry). This cannot be done in a matter of minutes. It is a 10-page document in relation to breaches.” 

Judge Dara Hayes said: “Clearly there is a potential of a significant sanction. There is a realistic prospect of a two-and-a-half-year sentencing being imposed.” Judge Hayes agree to adjourn the re-entry application until May 18.

Judge Hayes said that in the meantime the state solicitor should write to the defence and set out what particular conditions to which the alleged breaches relate.

Case background

Denis O’Rourke, an authorised officer of the Revenue Commissioners, said at the sentencing hearing three years ago, BV Securities Ltd was selling plant and machinery and in the relevant period had €1.95m of sales. On the basis of 46 invoices, the company was liable for €340,000 in Vat.

“That particular amount was separately invoiced to customers of the company — 46 invoices to 13 different customers. The Vat was paid by the customers and lodged by BV Services to a bank account. Dr Grimes was a signatory to that account. That total (over) €338,000 was not remitted. 

"No part of it, as of yet (May 2018), has been remitted to Revenue. The Exchequer did not receive the funds. Revenue was able to establish he was director and secretary and shareholder. He was responsible for Vat,” Mr O’Rourke said.

Defence SC, Tom Creed, said it would have been a long and complex trial without the pleas of guilty to the sample counts of failing to remit Vat while he was a director on dates in 2007 and 2008.

Alice Fawsitt, prosecution senior counsel, said the Revenue Commissioners had been asked their views in advance of sentencing on the possibility of the accused getting a suspended sentence. Their view was that this would be acceptable on an extensive set of conditions.

Judge Brian O’Callaghan, who imposed the sentence three years ago, said: “The defendant is, from this day forth, disqualified from acting as a company director and must keep the peace and keep his tax affairs up to date.” He is also required to refrain from vexatious communications with the Revenue Commissioners.

Mr O’Rourke said, at the end of his evidence outlining the background to the crime, that it would be very important that Grimes would cease to be a director of any company for a period of five years.

Referring to the requirement on the accused not to have any vexatious interaction with Revenue, Mr O’Rourke said: “If he kept away from Revenue that would be the most helpful thing he could do.”