A businessman who used accounts in Britain and Spain to hide income from the Revenue Commissioners has been forced to make a record €9.9 million tax settlement.
Dublin Circuit Court heard yesterday that Leslie Reynolds and his company, Leslie Reynolds and Co, East Wall, Dublin, had total liabilities of €4 million in unpaid Vat, corporation and income tax.
Earlier this year, Mr Reynolds was forced to pay this along with €4.7 million in interest and a further sum in civil penalties. This brought his total settlement with the Revenue Commissioners to €9.9 million.
It is understood to be the largest ever published tax settlement.
Reynolds and the company yesterday pleaded guilty to 30 charges of making incorrect Vat returns, incorrect returns in respect of employees' and personal income tax, incorrect corporation tax returns, and concealing income from the Revenue Commissioners.
Senior tax inspector Derek Coleman told the court that Mr Reynolds maintained two sets of accounts in the company. He recorded sales to regular account customers on a computer, this was disclosed to the Revenue, and the money was lodged with the company's account in Bank of Ireland.
But he invoiced occasional customers manually. He did not disclose these sales to Revenue, and instead lodged the cash either in an account in the company's name in Ulster Bank on O'Connell Street, Dublin, or in an account jointly held by himself and his wife, Emily, in AIB in Finglas, Dublin.
Between 1979 and 1997, he lodged a total of €2 million to Ulster Bank. Between 1977 and 1997, he lodged €2 million to AIB.
In addition, his company made payments to a fictitious company in Sussex, England, called Essential Supplies. Mr Coleman said that this business was not registered in Britain, and its address turned out to be that of Reynolds's brother-in- law, Roy Sturdy, a fraud investigator with British Airways. Leslie Reynolds and Co also made payments to a Spanish firm, Suministros Esenciales, registered to himself, his wife and son Keith.
Paddy McEntee SC, defending, told the court that Mr Reynolds was ashamed of what he had done and was fully tax compliant. Mr McEntee said the company had to borrow €4.5 million to make the settlement. He said this meant that Mr Reynolds (71) would have to rebuild the business financially.
The offences carry a range of penalties up to a maximum fine of €63,486, and/or seven years in prison. Judge Desmond Hogan adjourned sentencing to October 25th.
