The Revenue Commissioners and the motor industry have rejected claims that there is major investigation into VAT and tax fraud at dealerships and motor businesses in the southwest.
The claims of a major operation, which were made in a national newspaper, coincided with the launch of a planned regional compliance audit by the Revenue Commissioners into the motor industry.
Speaking at a major dealer conference in Dublin yesterday, Dermot Donegan, an inspector with the Revenue Commissioners, dismissed the claims and moved to reassure the industry and the public that the operation in the southwest was routine and was not based on any suspicion of tax evasion.
"This is part of our normal practice to audit an industry," said Donegan. "This is not a confrontational approach, and we have worked closely with the industry to agree our strategy."
Cyril McHugh, chief executive of SIMI, the motor industry's representative body, confirmed that the industry had known of the Revenue Commissioner's planned audit for several months.
"We had discussions with the Revenue Commissioners in February during which they informed us of the format of the audits so that we could then inform our members of exactly what to expect. This has happened to other industries such as construction and the beauty industries and now it is the turn of the motor industry."