REVENUE TO SCOUR THE DOSSIER TO RECOUP TAX
ANYONE Irish named in the Paradise Papers faces investigation and possible prosecution, the Revenue warned last night.
Those named so far include Bono and three stars of the RTÉ/BBC Mrs Brown’s Boys hit comedy show.
According to The Paradise Papers released this week, Bono used a company based in lowtax Malta to buy a Lithuanian shopping centre.
His spokesman has since insisted the singer was only a ‘passive, minority investor’ in Nude Estates, which bought for €5.7million The Ausra mall ten years ago. Patrick Houlihan and married couple Martin and Fiona Delany, who is the daughter of Mrs Brown’s Boys creator Brendan O’Carroll, are alleged to have diverted more than £2million (€2.3million) of their earnings into companies based in Mauritius. The cash was then sent back, purportedly as loans.
Last night, the Revenue Commissioners told the Irish Daily Mail that officials are to look at all individuals and companies that feature in The Paradise Papers that have an association with Ireland.
A spokesman said: ‘To the extent that the Paradise Papers identifies individuals and entities associated with Ireland, Revenue will profile these cases and make the appropriate intervention.
‘Where the circumstances of the case warrant it, Revenue’s intervention will include the possibility of investigation and potential prosecution.
‘Where appropriate, Revenue will also share information under existing legal frameworks, with other relevant tax administrations.’
And they said: ‘Revenue will continue to use all data and information received to identify potential tax evasion and avoidance, and to drive a compliance program for cases identified by Revenue’s risk assessment and profiling tools.
‘Revenue today emphasised that while the benefits of reduced penalties and avoidance of publication are no longer available in respect of tax default involving offshore assets, taxpayers are still encouraged to come forward immediately if there are tax issues involving offshore assets and income.
‘Failure to come forward will inevitably increase the likelihood of prosecution for non-disclosure.
‘Revenue will, as always, strive to obtain in full any new emerging information in relation to suspected tax evasion, including offshore tax evasion, and will use such information in the most efficient and effective manner to identify and confront tax evasion.’
Patrick Houlihan and Martin and Fiona Delany play Dermot, Trevor and Maria Brown respectively. Brendan O’Carroll’s production company pays cast members through a UK-based company.
However, it is alleged that Mr Houlihan and Mr and Mrs Delany have allowed some of their money be transferred into a Mauritian trust, instead of being declared in a normal fashion, before it is eventually ‘loaned’ back to them.
The suspicion is that the ‘loans’ are created with the purpose of legally avoiding tax and none of them were repaid, meaning they were in effect a form of income that should have been taxed.
According to the Paradise Papers, accountant Roy Lyness was involved in setting up meetings which led to the actors taking part in the scheme.
Mr Lyness was also behind the controversial K2 scheme, which involved comedian Jimmy Carr.
Mr Houlihan told the Irish Times he joined the Mauritian trust scheme without properly understanding it, and said Mr Lyness assured him that it was
‘Potential prosecution’
above board. He claimed to be speaking on behalf of Mr and Mrs Delany.
‘You never knew what the f*** was going on,’ he said.
‘I was told the money went to a trust and it wasn’t mine until I received it, and I didn’t have to pay any tax until I got the money. I was in control of when I would pay tax.’
A spokesman for Bono told the Guardian: ‘Bono was a passive, minority investor in Nude Estates Malta Ltd, a company that was legally registered in Malta until voluntarily wound up in 2015. Malta is a well-established holding company jurisdiction within the EU.’