A motor dealer against whom some €5 million summary judgment has been entered over unpaid taxes has been ordered to jail for a second time over his “continued and deliberate refusal” to co-operate with the Revenue in establishing the extent of his assets.
John Kane, also known as Alex Kane, of Granard, Co Longford, was not in court today and was not represented when Mr Justice Peter Kelly directed he be sent to jail for contempt of court orders.
Mr Kane had two weeks ago promised to co-operate with the Revenue in order to avoid another period of imprisonment, having been jailed for a week last December by Mr Justice Kelly for contempt.
The judge had made the second committal order two weeks ago after the Revenue alleged continuing failure to co-operate but placed a stay on it until today to allow Mr Kane the intervening period to comply. Unless there was full compliance, he would go to jail for a longer period, the judge warned Mr Kane.
Under the orders, Mr Kane was required to pay €24,000 by today and to co-operate “unequivocally” with Revenue in its efforts, continuing for some years now, to establish his assets and income.
Anthony Collins for the Revenue, said the €24,000 had been paid but other matters had not been complied with and the circumstances surrounding the ownership of certain lands and vehicles were “obscure”.
In an affidavit, a Revenue official said it was clear there was “a continued and deliberate refusal” by Mr Kane to co-operate unequivocally with Revenue.
An example of this non-compliance was Mr Kane’s “untrue” assertion a Toyota Land Cruiser vehicle was still owned by a named man when that man had told the Revenue he had traded the vehicle to Kanes of Granard for €18,000 as part exchange for a Mercedes van and also paid some €7,000 in instalments between January and July 2009, the official said. This meant Kane’s of Granard owned the vehicle.
A fax from John Kane to Revenue also referred to another Toyota Land Cruiser being for sale when a woman had told the Revenue she had bought the vehicle from Alex Kane in October 2009 for €15,000 and paid for it by a cheque made out to Alex Kane. The woman also said she was promised an invoice and receipt but was provided with neither, the official said.
There were also concerns related to lands and properties in which Mr Kane had an interest, the court heard.
Mr Justice Kelly said he had made clear to Mr Kane two weeks ago that he ran the risk of being sent to prison unless there was full compliance but that unfortunately had not happened.
A number of new matters raised questions about the level of compliance and there was “disturbing evidence” of vehicles being disposed of with monies paid directly to Mr Kane and not to the receiver appointed by the Revenue, the judge noted.
In the circumstances, the judge lifted the stay on his order committing Mr Kane to prison with the effect Mr Kane may be arrested and taken directly to prison.
The Revenue last July obtained summary judgment orders for some €4.97 million against John Kane and some €5.27 million against his brother, Pauraig Kane, over unpaid taxes in connection with the operation of their SUV business in Granard, Co Longford.
The Revenue had previously obtained orders freezing the accounts of the defendants below some €10 million and directing them to fully disclose their assets. A receiver was also appointed over the assets and businesses of the brothers.
The brothers started their motor sales businesses in 2000 and claimed to be one of Ireland’s 4X4 specialists. The Revenue began investigations in 2004 after which tax assessments were raised in substantial sums leading to the summary judgment applications.
