The estate of the late Des Traynor, the main architect of the secretive Ansbacher deposits system, has made a tax settlement of some €4 million, it was disclosed yesterday.
The settlement is one of six for more than €1 million that appear in the tax defaulters' list published in the latest issue of Iris Oifigiúil.
The settlement made by Mr Traynor's estate comprised €1.25 million tax and €2.8 million in penalties and interest. The tax charge arose from the underdeclaration of income tax and, unusually, residential property tax.
Mr Traynor, who died in 1994, played a key role in the secretive finances of the late Charles Haughey. He played the dominant role in the establishment and operation of the Ansbacher deposits system, whereby Irish depositors who ostensibly had money lodged in the Cayman Islands could access it through Mr Traynor and Guinness & Mahon Bank in Dublin.
Mr Haughey had an Ansbacher account and Mr Traynor lodged money to the account given to Mr Haughey by senior Irish business figures. He settled Mr Haughey's bills using funds in the account.
A second figure from the Ansbacher affair, Jack Stakelum, of Kilpeddar, Co Wicklow, also appeared on yesterday's tax defaulters' list. Mr Stakelum made a €425,000 settlement, of which €242,169 was interest and penalties.
Mr Stakelum, also an accountant, was a long-time friend of Mr Traynor's and introduced some clients to the Ansbacher system. He also played a role in Mr Haughey's personal finances after Mr Traynor's death.
Ansbacher was first disclosed in the course of the McCracken tribunal in 1997, which investigated payments by Ben Dunne/Dunne Stores to Mr Haughey and the former minister for communications Michael Lowry.
In cases where an estate has been distributed, subsequent tax bills fall on the executor or executors of the will. Mr Traynor's son, Tony Traynor, was an executor to his father's will and gave evidence on the matter to the Moriarty (payments to politicians) tribunal.
The largest settlement on the latest defaulters' list was by a retired company director, John F Connaughton, with an address at Glenbrian Hall, Howth Road, Dublin 3. Mr Connaughton made a €6 million settlement arising from the underdeclaration of income tax. The settlement involved penalties and interest totalling €4.5 million and arose from the Revenue's offshore assets investigations.
Mr Connaughton is a former director of CF Classic Fashions Ltd, of Green Street, Dublin 7. The company made a settlement of €1.1 million arising from the underdeclaration of VAT and again arising from the Revenue's offshore inquiries.
Oliver Bardon, a company director with an address at Morehampton Road, Dublin 4, made a €3.4 million settlement arising from underdeclaration of income tax and VAT. The settlement arose from the Revenue's offshore assets and bogus non-resident accounts investigations. Mr Bardon is a director of the firm which owns O'Donoghue's pub on Merrion Row, Dublin.
