A 74-year-old retired farmer from Co Limerick who could have settled with the Revenue Commissioners in 1993 for €33,500 could now face a bill of more than €600,000 in interest, penalties and fines, a court has heard.

Daniel Joseph Leahy of Ballycommane, Tournafulla, Co Limerick, appeared before Limerick Circuit Court yesterday in the first prosecution of its kind under a 1993 tax amnesty.

Mr Leahy has pleaded guilty to seven counts of filing incorrect farm profile return forms, which relate to the non-declaration of three bogus, non-resident bank accounts.

The pensioner also pleaded guilty to an eighth charge of breaching the Waiver of Certain Taxes, Interest and Penalties Acts 1993.

The offences relate to tax periods starting in 1980 and ending in 1995.

Inspector of taxes Liam Liston told the court that Mr Leahy failed to avail of a tax amnesty incentive in 1993 under which his tax liability would have been €33,500.

Not availing of the 1993 amnesty is an offence in itself.

Mr Liston added that the defendant's current tax liability is €118,917 but, including interest and penalties, that figure now stands at €507,542.

The court also heard that the maximum penalty upon conviction is eight years' imprisonment and/or a fine which could bring his total bill to more than €600,000.

Evidence was heard yesterday that Mr Leahy had three bogus, non-resident accounts in Ireland, using an uncle's address in New York.

The court heard that there was €240,000 in these accounts and that the defendant withdrew this money in cash over a three-week period in 1998.

Mr Liston said there was no proper explanation as to the destination of these funds.

He added that, during the investigation by the Revenue Comissioners, an offshore account in the Isle of Man had also been uncovered containing £121,183.25 (€178,235).

The defendant claimed in court that the money withdrawn in 1998 was given to family members in Ireland and some to his sister in England.

However, Mr Liston told the court that Mr Leahy's sister in England is the person who allegedly lodged money to the account in the Isle of Man.

Counsel for Mr Leahy told the court that his client - who has no previous convictions - had been co-operative throughout the investigation and had a cheque for €100,000 yesterday in court for the Revenue Commissioners.

Judge Caroll Moran said he was adjourning the case to allow Mr Leahy time to make a full disclosure on his position relating to the Isle of Man account.

The case is due to resume at Limerick Circuit Court on May 12th.