Michael Lowry fined €15,000 after tax convictions

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

Independent TD Michael Lowry was fined €15,000 and his company Garuda Ltd €10,000 following jury convictions over a €372,000 commission payment. Judge Martin Nolan said Lowry’s motivation was not to evade tax. The sentencing at Dublin Circuit Criminal Court was reported on 26 June 2018.

The jury found that Garuda knowingly delivered an incorrect corporation tax return for the year ending 2006 and that Lowry consented to or connived in it. It also found that Garuda failed to keep proper books of account from 2002 to 2007, an offence caused by Lowry’s wilful acts. The verdicts were unanimous.

Lowry had pleaded not guilty to four charges concerning incorrect tax returns and one concerning the failure to keep proper accounts. He also pleaded not guilty on Garuda’s behalf to three similar tax charges and one accounts charge.

The judge directed Lowry’s acquittal on the charge of delivering an incorrect income tax return for 2002. The jury could not agree on the remaining charges concerning Garuda’s 2002 corporation tax accounts and information and Lowry’s alleged consent or connivance; the DPP would not pursue them. Lowry and Garuda had successfully challenged a Revenue assessment treating the commission as his salary, reducing that assessment to nil.

The commission was due to Garuda from Finnish company Norpe OY in 2002 and was paid to Kevin Phelan through an Isle of Man trust. Lowry said he allowed the transfer because the company owed him money he had lent it. He said he discovered the commission had not been accounted for in 2006 and contacted his accountant to correct it.

Judge Nolan said a custodial sentence was inappropriate and described Lowry as a conscientious taxpayer. He reduced Lowry’s automatic disqualification as a company director from five years to three.