Cork company director convicted for failure to pay €60k in Vat over three years

Director pleaded guilty to 10 counts of creating incorrect tax returns and failing to remit the correct Vat 19 times

Judge imposed a suspended sentence on company director and fine of €5,000 on the company. Picture: Larry Cummins 

Failure to pay €60,000 of Value Added Tax returns by an engineering company in 2013 to 2016 resulted in the company being convicted and fined €5,000, and a director getting an 18-month suspended sentence at Cork Circuit Criminal Court on Friday.

Jonathan Cummins, director JPAC Engineering Ltd, of Cork Road, Fermoy, Co Cork, pleaded guilty to 10 counts of creating incorrect tax returns and failing to remit the correct Vat 19 times as well.

The loss of Vat revenue of €60,000 and €20,000 in interest have now been paid in full by the defendant.

Identical guilty pleas to the 20 charges were entered on behalf of JPAC Engineering Ltd, and there were additional pleas of guilty by the company on four counts of making incorrect corporate tax returns.

Revenue Commissioners investigating officer Catherine Bambrick testified the matter came to light when a discrepancy was noticed between invoices from a company doing business with JPAC and the invoices showing from JPAC in respect of this work. 

The two sets of invoices did not match up, Ms Bambrick said. Following an initial audit, the matter was escalated and an investigation commenced.

Ms Bambrick told prosecution barrister Imelda Kelly the Vat shortfall across the four years from May 2013 to August 2016 totalled €60,000.

“In terms of the loss of €60,000, Mr Cummins has paid that in full. €20,000 interest has also been paid.

“Mr Cummins cooperated with the investigation, he paid back the amount in full, he admitted he was responsible and he entered the guilty plea early,” Ms Bambrick said.

Defence barrister Tom Power said of Mr Cummins: “He is now up to date and fully tax compliant. He had never been in any difficulty with Revenue before.

“He has done everything he can to put it right, he has rehabilitated and adjusted his behaviour, he has come up with the money and accepted responsibility in relation to the matters.” 

Judge Helen Boyle imposed the suspended sentence on Jonathan Cummins and the fine of €5,000 on the company.

Referring to the offences, the judge said: “This required a bit of effort, creating incorrect invoices, moving money between accounts, writing cheques to make it look like the amounts were the same — it was sustained and deliberate over a period of time.” 

However, the judge noted the mitigating factors put forward by Mr Power BL also.