Flood threatens Brennan with High Court

Mr Justice Feargus Flood this afternoon warned if documentation the tribunal sought from Mr Tom Brennan is not produced by next…

Mr Justice Feargus Flood this afternoon warned if documentation the tribunal sought from Mr Tom Brennan is not produced by next week the case will be brought before the High Court.

Counsel for the tribunal Mr Pat Hanratty SC complained an order sent to Mr Brennan in May to produce documents relating to the Silkborg Trust and payments to Mr Ray Burke by June 8th this year was by-passed.

He said he had been "singularly unsuccessful" in getting the documents and insisted there was "no good reason" for the delay.

Justice Flood agreed and made an order for Mr Hanratty to apply to the High Court for a subpoena unless Mr Brennan produced the documents by "the close of business" next Tuesday afternoon at 3.45 p.m.

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"They must get their thumb or their finger out and get moving on it," he said. "I will not tolerate the continuance of this situation".

Earlier today Mr Hanratty claimed Mr Brennan "seriously mislead" a Revenue liquidator in 1985 and "frustrated" an investigation into his business practices.

Mr Hanratty told of a business transaction in which Jersey company Bouganville Investments Ltd (owned by Mr Brennan) bought a property from Green Isle Ltd - also owned by Mr Brennan and registered in Ireland.

Mr Hanratty showed evidence Green Isle Ltd bought a freehold property from the Sacred Heart religious order in Monkstown in Co Dublin for £10,000 and sold it to Bouganville for £350,000.

The £340,000 balance was transferred to Jersey and distributed to Mr Brennan and his business partners.

But in February 1985 in response to a query from Mr Stephen Treacy of the Revenue as to why Green Isle would pay £350,000 for a property worth £10,000 Mr Brennan's solicitor intimated in a letter Mr Brennan was not the owner of Bouganville and that the transaction was carried out "at arms length" from him.

Today Mr Brennan said he could not accept or deny he knew he owned Bouganville at the time of the letter because a "structure" was in operation then whereby his advisers would organise business deals without necessarily informing him.

But Mr Hanratty put it to Mr Brennan he was aware of his association with Bouganville. He also suggested another Jersey-registered company, Rapallo Investments Ltd - which Mr Brennan claimed provided management services to Bouganville - was a "bogus" company.

Mr Hanratty said Rapallo Ltd "had no services or capacity to provide management services and never did". He said the company was "artificial in the extreme" and was set up for the purpose of transferring money offshore to avoid the payment of Capital Gains Tax.

Mr Hanratty asked Mr Brennan if he knew the sale of Irish land to a foreign company whose main assets were outside Ireland provided company the privilege to avoid paying Capital Gains Tax Mr Brennan replied: "No, you're way above my head".

The tribunal continues on Monday.