Judge to direct not guilty verdict on Michael Lowry tax charge

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Judge Martin Nolan said he would direct the jury to return a not guilty verdict on one tax charge against Michael Lowry after the prosecution withdrew it. Eight further charges remained on trial at Dublin Circuit Criminal Court. The proceedings were reported on 20 June 2018.

The withdrawn charge alleged that Lowry knowingly or wilfully made an incorrect 2002 tax return on 21 October 2003 by failing to account for £248,624 (€372,000) obtained from Garuda Ltd as income. The prosecution withdrew the charge after an application by his lawyers in the absence of the jury.

Lowry had pleaded not guilty to four charges of filing incorrect tax returns between August 2002 and August 2007 and one charge of failing to keep proper accounts between 28 August 2002 and 3 August 2007. He also pleaded not guilty on behalf of Garuda Ltd to three similar tax charges and one charge of failing to keep proper accounts over the same dates.

The prosecution alleged Garuda received the money as commission from a Finnish refrigeration company in August 2002. The jury was told Lowry arranged for payment to a third party in the Isle of Man, so it did not appear in the company's accounts or his declared income. It was also alleged that the accounts were falsified in 2007 to show receipt in 2006.

Revenue tax inspector Henry Oliver assessed the payment as salary and the tax and penalties owed as €1.1 million. Lowry and Garuda successfully appealed that assessment in April 2015; it was reduced to nil, with no income tax, PAYE or PRSI owed for that year. Separately, the jury heard that delayed corporation tax cost Revenue €5,541. Garuda paid a final assessment of €29,000, including penalties, in 2013.