Property developers Thomas and Michael Bailey, of Bovale Developments, have confirmed that they have made a substantial settlement with the Revenue Commissioners, believed to be the largest-known settlement of its type with the tax authorities.
Their company has made a settlement understood to be in the region of €25 million arising out of a Revenue audit of their company's accounts going back many years.
The two men, in a short statement, said they had made a full and final settlement with the Revenue.
"We confirm we have reached a full and final settlement with the Revenue Commissioners. Throughout the process we have co-operated fully with the Revenue Commissioners and we are pleased that the matter has been resolved to the satisfaction of the relevant parties. We will not be making any further comment."
The company and its dealings have featured at the proceedings of the Flood, now Mahon, tribunal that is inquiring into certain planning matters.
Recently the company abandoned its limited liability status, meaning it no longer had to publish detailed accounts.
However, a statement filed in the Companies Registration Office recently by the Bovale auditors disclosed that the company had made a loss in the year to June 30th, 2005. It is likely the loss was the result of the company having to make such a large tax settlement.
The latest filed accounts for Bovale, for the year to end June 2003, showed that company made a profit after tax of €55.36 million in the year while the brothers received an overall remuneration package worth €8.2 million. In mid-2003 the company held lands worth €49.73 million and work-in-progress was valued at €13.76 million.
It remains very active in the Irish property sector.
In 2002 the then chairman of the tribunal, Mr Justice Flood, found Michael Bailey had made a corrupt payment to former Fianna Fáil minister Ray Burke.
In his report of September 2002, the judge also found that Michael Bailey obstructed and hindered the tribunal on eight grounds. Thomas Bailey was found to have obstructed the tribunal on four grounds.
In another report, published last January, the judge found that Michael Bailey made three corrupt payments to the former planning official, George Redmond, and hindered and obstructed the tribunal on five grounds.
