Cork man given two weeks to pay debts

A judge has ordered the director of Cork cleaning company charged with making incorrect tax returns to put his 'put his house…

A judge has ordered the director of Cork cleaning company charged with making incorrect tax returns to put his 'put his house in order.'

Barry McDonald (61) of McDonald Cleaning Services Ltd, Unit 9 Rockgrove Industrial Estate, Little Island, Co Cork has been given two weeks to make some attempt to repay outstanding debts to the Revenue Commissioners.

Mr McDonald pleaded guilty to sample charges on a 76-count indictment of making incorrect tax returns last March.

Judge Patrick Moran adjourned sentencing at Cork Circuit Court today, after it was established in court that no revenue payments have been made to date.

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"We all have to pay the Revenue. We all have to pay for the country in these times," Judge Moran told the court.

"People would want to pull themselves together," the judge added.

The charges relate to incorrect VAT returns, VAT repayment claims and corporation tax returns and one was for failing to keep records.

Revenue Commissioners inspector John O'Flynn said outstanding payments owed by Mr McDonald's company include €131,000 in respect of unpaid VAT and €142,000 is respect of PAYE.

The court heard that revenue's estimated assessment of Mr McDonald's personal liability amounted to €353,000, a figure that could ultimately rise to €460,000.

A bank account held in Mr McDonald's name, accessed by revenue through a court order, contained €1.2 million on deposit, the court heard.

Money from this account was used to pay staff, on and off the books and also to pay Mr McDonald and another company director.

Mr O'Flynn said the matter came to light after an accountant approached revenue to disclose information concerning Mr McDonald's company.

"A former accountant came to revenue and stated that a large number of sales invoices were not being paid," Mr O'Flynn said.

The court heard that Mr McDonald sold a 30 per cent stake in a property company with five houses on its books earlier this year. The properties were placed on the market, but have not sold.

Tom Power, defending, applied for a longer adjournment to allow Mr McDonald put his affairs in order.

"Nobody can work miracles in the current economic climate. We are trying to do what can be done," he said.

Judge Moran refused and adjourned sentencing until Thursday July 14th as no payments have been made since McDonald's previous court appearance last March.

"If you are looking for mercy from me, you have to make some attempt to convince me," Judge Moran said.