THE DUBLIN food hall and restaurant business, Fallon & Byrne, has made a €733,719 settlement after an extensive audit by the Revenue Commissioners.
The settlement arose from the under-declaration of VAT totalling €362,474 and the imposition of interest and penalties of €371,245.
The high-profile food business was set up in 2006 by property developer Paul Byrne, his wife, former journalist Fiona McHugh, and their then business partner, Brian Fallon, who is no longer involved. Requests for a comment yesterday met with no response.
The settlement was one of a number published yesterday in Iris Oifigiúil.
Mr Byrne was also party to a second settlement arising from a business he runs with his father, Peter. Paul and Peter Byrne, building contractors with an address at Walshestown, Newbridge, Co Kildare, made a settlement of €644,058 arising from the under-declaration of VAT, PAYE/PRSI and relevant contracts tax.
It is common practice for the Revenue to conduct general inquiries into a person’s businesses once tax difficulties have been discovered at one of them.
Fallon & Byrne operate a food hall on the ground floor of their premises on Exchequer Street, a wine bar in the basement, and a restaurant on the first floor. It also hosts weddings and other functions on an upper floor of the building.
However, while the business has been praised for the quality of its food and wine, its ability to produce a profit has been under pressure.
It has recently filed its accounts for both 2008 and 2009. The 2008 accounts showed a turnover of €11.2 million and profits before tax of €255,773.
The 2009 accounts showed that turnover had dropped to €10 million and that the company had suffered a loss of €21,000.
The accounts, which were signed off on by the directors, Mr Byrne and Ms McHugh on August 13th and August 23rd respectively, also recorded financial dealings with related parties.
The 2008 accounts said the company was owed €94,207 from a family member of Mr Byrne at the end of the year. “The company is in the process of obtaining recovery of this amount,” the note stated.
The 2009 accounts said the family member owed the company €223,132 at the end of that year. Again it was stated that the company was in the process of recovering the amount. The accounts did not expand on how the debt had arisen.
They also showed dealings between the company and the directors which left the directors being owed money by the company.
Ms McHugh is a former business journalist and former editor of the Irish edition of the Sunday Times.