Dunne's tax request rejected

EIGHT weeks ago the Government rejected a request from members of the Duane family for changes in the taxation laws concerning trusts.

A meeting between advisers to members of the family and Department of Finance officials took place in late October.

Disputes between Mr Ben Dunne and other members of the family could lead to a break up of the trust, creating a tax liability likely to be in the region of £80 million to £90 million.

During the talks, the issue of legislative changes in the tax regime in relation to discretionary trusts was raised, a spokesman for the Department said. "There has been no agreement in the discussions. The Minister for Finance has no plans to make any change in the law at present.

Mrs Margaret Heffernan and Mr Frank Dunne are understood to have attended a meeting of the Dunnes Stores board yesterday. A spokesman for the company said there would be no comment in relation to the meeting with Finance Department officials.

Two years ago Mr Ben Dunne left the company and agreed a settlement with the other members of the family for a reported £125 million. This is being paid in tranches and the final £50 million is due to be paid shortly. Mr Dunne is reported to be facing a tax liability of around £30 million as a result of the settlement.

Meanwhile, Mr Dunne and his sister, Mrs Heffernan, who took Mr Dunne's place as head of the company, are engaged in a fresh legal battle connected with the will of Ms Therese Dunne, who died in September 1995. Mrs Heffernan is the executrix of her sister's will.

. Mr Dunne's legal action against Mrs Heffernan was adjourned for a week when it was mentioned in the High Court yesterday.