The Criminal Assets Bureau had left a Dublin man "in the dark" over his right to appeal tax assessments and failed to act in accordance with fair procedures, the Supreme Court found yesterday.
Referring to a letter written by CAB to Mr Terence Keogh, the Chief Justice, Mr Justice Keane, said it was "not asking too much" of the Revenue Commissioners or their inspectors not to respond to a letter [from Mr Keogh\] "in a manner which they must have known could have left him in the dark as to his rights". Mr Keogh, in his letter, had said he wished to appeal against tax assessments served on him. The CAB response seemed to be at variance with both the letter and the spirit of the "Taxpayers' Charter of Rights", Mr Justice Keane said. He listed the case for today to make final orders.
Earlier in his judgment, the Chief Justice said gardaí had searched the home of Mr Keogh (39), a bricklaying sub-contractor, of Griffith Avenue, Dublin, in March 1996, and found £22,000 and a small amount of cannabis resin. Traces of material on the money were found to be cannabis resin or cocaine.
Mr Keogh applied for the return of the monies, but CAB brought proceedings which were struck out on terms. These included that the sums involved be paid to CAB as a partial discharge of preliminary tax for the years 1994-1997.
In February 1998 CAB wrote to Mr Keogh saying they would act from then on as his tax inspector and on the same day issued notices of assessment of income tax for the years 1994-1997. For each year his income tax was assessed on "miscellaneous income" for the sum of £100,000.
Mr Keogh wrote to CAB seeking to appeal the assessments on the grounds that they were overestimated and without fact. He said he would furnish tax returns within 21 days. CAB replied on March 26th, 1998, that he was not entitled to appeal as he had not complied with certain requirements of the Taxes Consolidation Act 1997. It also said it was a prerequisite of any appeal that he deliver a return to CAB and pay the amount of tax as defined in the 1997 Act.
CAB also later wrote saying they had received returns dated March 19th, 1998, which they said they received on April 1st, 1998. Mr Keogh was told the returns were received too late for the appeal to be accepted. On April 28th, 1998, CAB sent Mr Keogh demands, dated that same day, for the immediate payment of tax and interest for a total sum of £286,000.
