Finnegan got £600,000 in offshore funds

The Flood tribunal has heard about the dual role of auctioneer Mr John Finnegan in land deals from which he and builders Mr Tom Brennan and Mr Joe McGowan benefited.

Mr Finnegan acted as selling agent in at least two land purchases by Brennan and McGowan companies in Dublin in the 1970s and 1980s. However, he also received substantial offshore funds from intercompany transactions involving the lands.

Mr Pat Hanratty SC, for the tribunal, said Mr Finnegan, Mr Brennan and Mr McGowan each received offshore funds exceeding £600,000 from five transactions involving the land. In Ireland the money would have been subject to various taxes, Mr Hanratty said.

All five transactions involved buying of land or property in Ireland by an offshore company controlled by the three men; transferring it for a larger sum to an Irish company they controlled and moving the proceeds to Jersey.

In the first deal, the freehold of land owned by the Sacred Heart convent in Monkstown was bought by Bougainville, a Jersey company owned by Brennan and McGowan, for £10,000. This interest was transferred to an Irish company, Green Isle Holdings, for £350,000, which went to Jersey and was distributed equally between the three.

Bougainville was liquidated and its assets distributed to the shareholders - so avoiding capital gains tax and stamp duty.

Land at Newtownpark Avenue in Blackrock was bought for £100,000 by an offshore company in which the three men had an interest and sold to an Irish company which sent £550,000 in proceeds to Jersey for distribution between the three.

Other transactions involved lands at Bellevue Avenue in Donnybrook, 6/7 St Stephen's Green, and Sandyford. One of the beneficiaries of the Sandy ford deal was former minister Mr Ray Burke, who got £60,000 from Canio, the company which owned these lands.

Mr Dominic Hussey SC, for Mr Finnegan, said his client acted as selling agent for the Monkstown and Stephen's Green properties. He said he was checking the other deals.

Mr Hanratty said the Monks town deal was investigated by the Revenue Commissioners.

Mr Brennan, in the witness box, said he was not contacted during this investigation. Mr Hanratty said the witness was mistaken and produced correspondence between Mr Brennan and the Revenue in 1985.

Counsel accused Mr Brennan of concealing the fact that he owned Bougainville - by this the Revenue was seriously misled and its investigation frustrated.

Mr Brennan said the plan had been put in place by his advisers. "I didn't know what company was doing what. I just knew the end result."

In response to further disclaimers, Mr Hanratty said the witness was "not going to deal with the matter by pretending to be stupid".