A CAR dealer who claimed the Revenue Commissioners had unlawfully detained and seized four racing cars he used for promoting his business, lost his High Court action yesterday for their return.
Lee Cullen, a father of two from Starwood, Saggart, Dublin, argued the cars were exempt from taxes because they were "special purpose vehicles".
The High Court heard the Revenue offered to release the cars for €124,000, representing VAT, Vehicle Registration Tax (VRT) and a 10 per cent market price penalty and indicated he would not be prosecuted for not paying these taxes. If Mr Cullen paid, he could also then appeal, the Revenue offered.
Mr Cullen, and his company LC Autolink Ltd, Heritage Village, Saggart, Dublin, declined and took High Court judicial review proceedings arguing the decision to detain and seize the vehicles was unlawful, lacked natural justice and fair procedures.
The Revenue argued Mr Cullen was mistaken in his view the cars were exempt and said they were unregistered for VRT, not recorded on any stock register and, when they were imported by Mr Cullen, he paid for two of them out of his personal funds.
Mr Justice John MacMenamin rejected Mr Cullen's proceedings on all grounds. The judge said Mr Cullen was informed of the steps available to him, including that he was entitled to make a case that the cars were not liable to a penalty, before the Revenue made a determination that the cars were seized rather than just detained. It was open for Mr Cullen to make a submission to the Revenue, prior to making their determination, but he and his company chose not to do so, the judge added.
In correspondence between Mr Cullen and the Revenue, shortly after the detention of the cars, he had written a letter "which would do justice to a skilled lawyer" saying that any attempt to "single me out" for challenging "errors committed by the Revenue" would constitute malicious prosecution and amount to administrative malfeasance, the judge noted.
The style of that letter was in marked contrast to the "laconic nature" of the evidence Mr Cullen gave under cross-examination during these judicial review proceedings. The judge said he regretted he had to conclude Mr Cullen's testimony was "untrue".
The judge also said correspondence between Mr Cullen and the Revenue showed he was "a man remarkably aware of his rights" and no evidence of any deprivation of "any right". Although the tax law provisions under which the determinations were made are "rigorous", it was not demonstrated the Revenue had "shut out" Mr Cullen and his company by prematurely reaching their opinion as to the liability for tax.
That opinion was subject to Mr Cullen's right to make a submission that liability should not be imposed prior to any final determination by the Revenue which did not impose "a binding liability" on Mr Cullen.
During the hearing last October, the High Court heard the four cars involved, Mitsubishi Lancer Evolutions, were seized by a team of Revenue officers from Mr Cullen's LC Autolink Ltd premises a year ago. The cars, it was claimed, were used for corporate events including allowing clients to participate in racing days at Mondello Park racecourse.