THE OPERATOR of a Cork company “who lost everything” was jailed yesterday for two years for personal and business tax offences amounting to almost €600,000.
Barry McDonald (62), proprietor of McDonald Cleaning Services Ltd, Unit 9 Rockgrove Industrial estate, Little Island, Co Cork, and of Factory Hill, Kilcoolishal, Glanmire, was given a three-year jail sentence with the last year suspended.
McDonald’s firm employed up to 90 people at one point, Cork Circuit Court heard yesterday.
On behalf of his company, which ceased trading in March 2009, McDonald pleaded guilty to 10 charges that related to incorrect VAT returns, VAT repayment claims and corporation tax returns. One count was for failing to keep records.
The loss to Revenue arising from the company’s offences amounted to a total of €273,000, Judge Patrick Moran said, while the loss resulting from his personal offences amounted to €343,000, of which €44,000 had been repaid.
The court heard that, over a nine-year period, McDonald made cash payments to staff who continued to claim social welfare benefits and retained their medical cards.
The judge said it was his duty to impose a jail term. He referred to a recent decision in a fraud case at the Court of Criminal Appeal which sought to give guidance to sentencing judges in such cases, as they were becoming more common.
Judge Moran said the defendant had co-operated with the Revenue investigation, though he had refused to answer certain questions during one interview.
Referring to the evidence of Revenue inspector John O’Flynn, he said McDonald “had a considerable advantage over competitors by not being tax compliant”.
Defence barrister, Tom Power said McDonald had put all his assets into dealing with outstanding money owed to the Revenue Commissioners.
“He is a man who has essentially lost everything, and is heading into the autumn years of his life with noting to look forward to except bringing his affairs with the Revenue Commissioners into some kind of line.”
Judge Moran also imposed a €150,000 fine on McDonald’s firm.
