Michael Lowry pleads not guilty to tax charges
This report is a localnews.ie summary based on public court reporting and records; sources are listed below.
Michael Lowry pleaded not guilty at Dublin Circuit Criminal Court to four charges of filing incorrect tax returns and one charge of failing to keep proper accounts.
The tax-return charges concern dates between August 2002 and August 2007 and a payment received by his company, Garuda Ltd. The accounts charge covers dates between 28 August 2002 and 3 August 2007.
He also pleaded not guilty on behalf of Garuda Ltd to three similar charges concerning its tax affairs and one charge of failing to keep proper accounts over the same dates. The proceedings were reported on 15 June 2018.
The State alleged that Garuda received Stg £248,624 (€372,000) in commission from Norpe OY in August 2002, and that Lowry arranged for it to be paid to a third party in the Isle of Man. It was alleged that the payment did not appear in the company's accounts for that year, that Lowry did not declare it as income, and that the accounts were falsified in 2007 to show it was received in 2006.
The jury saw a letter signed by Lowry stating that the payment had been made directly to him but was properly due to the company and should be reflected in its 2006 accounts. It instructed that the payment be set against the director's loan.
Revenue inspector Henry Oliver agreed that Revenue was ultimately €5,541 worse off because the commission was not disclosed. The court heard that Revenue deemed €29,000 due, including penalties and fines, and Garuda paid it in 2013.
Oliver also accepted that the appeals commission had found neither Lowry nor Garuda liable for income tax or PAYE/PRSI on the €372,000, reducing their joint Revenue bill of €1.1 million to zero. He agreed that the finding was based on a lack of evidence that the payment was an emolument, or salary. He accepted that Lowry and his tax adviser had never accepted it was an emolument.
The trial continued before Judge Martin Nolan and a jury.