Mayo councillor tells of tax 'error'

AN INDEPENDENT councillor on Mayo County Council whose name was on Tuesday’s list of tax defaulters, said he brought his “error…

AN INDEPENDENT councillor on Mayo County Council whose name was on Tuesday’s list of tax defaulters, said he brought his “error” to the attention of the Revenue Commissioners.

However a spokesman for the Revenue said people who make voluntary disclosures do not end up on the defaulters’ list.

Michael Holmes, of Newfield, Mulrany, Westport, Co Mayo made a €45,408 settlement arising from the underdeclaration of income tax and VAT. The case involved a Revenue single premium insurance products inquiry.

The tax involved was €16,506 and the interest and penalties were €28,901. Mr Holmes is a farmer and agricultural contractor and has been a councillor for six years.

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Contacted by The Irish Times he said it was an error on his part. “The money was earned and worked for. It was I that approached the Revenue Commissioners when we discovered the error about a year ago.” He said he discovered the error along with his accountant and the accountant contacted the Revenue.

The Revenue list is published in Iris Oifigiúil where it is stated that settlements are not published “where the taxpayer has, in advance of any Revenue investigation, voluntarily furnished complete information relating to disclosed tax liabilities”.

When it was put to Mr Holmes that voluntary disclosures do not normally lead to names being published, he said it was he who contacted the Revenue, through his accountant. He said he had not queried with the Revenue its decision to include his name on the defaulters’ list.

A spokesman for the Revenue said voluntary disclosures are not published. He would not discuss any individual case.

Mr Holmes said he did not avail of the amnesty announced some time ago for people who had undeclared income in single premium insurance products.