THE REVENUE Commissioners, in an unprecedented application to the Commercial Court, have secured orders freezing the assets of two major sports utility vehicle dealers below a total €10.1 million arising from their alleged “long history of tax evasion”.
Mr Justice Peter Kelly yesterday made the freezing orders against Pauric Kane, operating as Granard Motors, Granard, Co Longford, and his brother John Kane, also known as Alex Kane, operating as John Kane and Kanes of Granard.
Gary McCarthy, for the Revenue, said it wanted the freezing orders because it was concerned the brothers would seek to dissipate their assets.
The Revenue claims the recent incorporation by Pauric Kane of a limited liability company was “a sham” to move assets beyond the Revenue’s reach and that Pauric and John Kane have both bought properties while failing to pay substantial sums to the Revenue.
It claims John Kane, just before withdrawing his appeal against a tax assessment, had set up Kanes of Granard Ltd in late 2008 with a view to defeating claims by the Revenue. It alleges the businesses of both brothers appear to be operated as a single business.
Counsel, who sought the freezing orders on an ex parte basis, said the brothers were involved in operating one of the biggest SUV specialist dealerships in the country at Granard, Co Longford.
The Revenue also believes another brother, Seamus Kane, remains involved in the family business although such involvement had been denied by him.
Mr McCarthy said the Revenue would be applying to the court on Monday to enter proceedings against Pauric and John Kane aimed at recovering sums allegedly due in unpaid taxes. Pending that, the accounts freezing order was being sought.
The Revenue is seeking €5.27 million from Pauric Kane and €4.9 million from John Kane relating to alleged substantial underdeclaration of tax and VAT.
The Revenue allege the defendants operated two systems of accounts, one for themselves and the other for the Revenue with “deliberate concealment” of the nature of the trade carried on.
Pauric Kane had dragged out an appeal against an assessment raised against him in order, the Revenue believed, to change from being a sole trader and instead set up a limited liability company in the name of Prestige 4x4 Specialists Ltd, incorporated in November 2008.
Counsel said the Revenue obtained judgments in 2002 amounting to more than €897,000 against Seamus Kane which remain unpaid. Seamus Kane had denied under cross-examination he had any assets apart from one property at Farrell’s Terrace, Granard, but the Revenue believed he owns other properties and was seeking to defeat execution of the judgments.
Mr Justice Kelly said an affidavit by Collector General Gerard Harrahill indicated a prima facie entitlement to the sums sought.
Given the matters set out by the Revenue, the judge said he was satisfied to make the freezing orders.
