A prominent campaigner for reform of the security industry failed to pay taxes on his business for over six years, Dublin Circuit Criminal Court has heard.
Gary Wynne (38) avoided paying tax on over €4 million in income by claiming to transfer his VAT inclusive invoices to a fictitious company, rendering his company, Loganroy Consultants Ltd, VAT neutral.
Mr Wynne provided doorstaff to many well-known Dublin premises including Vicar Street and Eamon Dorans.
The court heard he defrauded the Revenue of €759,000 and owes another €911,207 in interest. He faces up to five years imprisonment when he is sentenced next month.
Details were heard of Mr Wynne’s extensive lobbying of the government for the establishment of the Private Security Authority because he wanted to “professionalise” the industry.
Mr Wynne, of Kellystown Lane, Leixlip, Co Kildare pleaded guilty to 10 counts of submitting incorrect invoices and VAT returns to the Revenue between 1997 and 2003. Loganroy Security Ltd of Fitzwilliam Place, Dublin also pleaded guilty to the same offences. They have ceased trading and were not represented in court.
Revenue Officer John Flynn told prosecuting counsel, Dominic McGinn SC, that Mr Wynne set up Loganroy in 1997 with his mother Anne Wynne, as the other director. No charges were brought against Ms Wynne.
The company supplied doormen to various premises around Dublin. The fraud involved Mr Wynne pretending to subcontract the security work to a fake business, Alert Security Ltd.
When customers submitted VAT inclusive payment to Loganroy, Mr Wynne claimed to transfer the invoices to Alert Security, meaning they were liable for the VAT.
In total, 324 invoices were transferred to the fake company, amounting to over €4 million in income.
Mr Wynne owes a total of €1,670,207 to the Revenue, including back taxes and interest. He had €30,000 in court which he raised through loans. His defence counsel indicated he is willing to continue making repayments when he can afford them.
Mr Wynne’s sister, Laura Wynne, told Raymond Comyn SC, defending, that she helped Mr Wynne set up training programmes for his staff to help “professionalise” the industry. She said they were actively involved in lobbying for the establishment of the PSA and issued newspaper releases and held press launches in support of this.
She agreed that he was a “significant player” and the only figure in the industry campaigning on the issue. She added that the company’s training programmes have now become the industry standard.
When asked by prosecuting counsel if the training programmes included anything about Revenue obligations she replied that they did not.
Mary May, who has a terminally ill child, gave evidence of Mr Wynne’s character and told the court he had raised 160,000 through fundraisers for home nursing care for sick children.
Mr Comyn told Judge Patricia Ryan that his client will be “forever tainted” in the business world because of the charges and will be dependent on the charity of friends for future employment. He said this is a “significant punishment” for a prominent figure such as Mr Wynne.
Counsel said that the only purpose of a heavy sentence would be to send a message of deterrence. He submitted that this is not necessary as it is “generally well known in Irish society that these type of offences won’t be tolerated.”
Judge Ryan adjourned sentencing until next month and remanded Mr Wynne on continuing bail.