Cork Red FM broadcaster Neil Prendeville has made a tax settlement of €541,636, according to the latest list of tax defaulters published by the Revenue Commissioners.
Described as a company director, radio presenter and newspaper contributor, Mr Prendeville is listed as having under-declared income tax to the extent of €327,663. He also paid interest of €115,674, and penalties of €98,299.
In a statement he made on air on Tuesday, Mr Prendeville said the debt arose from the treatment of his remuneration with Red FM, the taxation of which had been handled by his accountants since he joined the station in 2014.
Mr Prendeville's solicitor John Boylan, of BDM solicitors, said a firm of accountants had handled the tax element of his client's remuneration package with Red FM, and had advised him that he was fully compliant.
However, when the Revenue audited Mr Prendeville’s tax affairs, the solicitor said, it found that incorrect tax returns had been made.
The broadcaster issued High Court proceedings against the firm and a settlement was quickly arrived at, the solicitor added.
This led to the firm’s insurers paying all the tax, penalties and interest due, and to Mr Prendeville receiving “substantial compensation” because what had happened meant he was to appear on the tax defaulters list, Mr Boylan said.
A new firm of accounts was engaged, and its fees were paid as part of the settlement, he continued, in a statement. The Revenue had no discretion but to publish the broadcaster’s name as a tax defaulter, the statement read.
“Mr Prendeville and his family have been under enormous stress and worry since discovering the serious errors. He is glad that what has been an upsetting period, is now closed.”
The broadcaster read out a statement about the matter on air on Tuesday, during which he said there had been many times over the past few years when he had wanted to talk about it on air, “but I was prevented from doing so while there was a legal process in place.
“This is the earliest opportunity I have had to tell you about the facts because I believe you deserve to know the truth.”
Mr Prendeville’s former accountants were asked to comment but no comment was forthcoming.
