MURRAY Consultants, whose directors made a £1 million tax settlement through a Panamanian company, advised the Revenue Commissioners on the introduction of income tax self assessment.
The commissioners yesterday confirmed that they employed the Dublin public relations firm in 1988 for the launch of the scheme. Murray Consultants was hired after a tendering process and was paid £88,000, of which £31,000 was deducted as withholding tax.
Under self assessment, individuals are expected to calculate their own tax liabilities, but are subject to random checks by the Revenue Commissioners.
The former leader of the Progressive Democrats, Mr Des O'Malley TD, yesterday called for a full statement on the circumstances surrounding the settlement. However, the Revenue Commissioners have refused on the basis that individuals' dealings with them are confidential.
Mr O'Malley said it was important to clarify why the three directors were allowed to settle via a Panamanian registered company rather than under their own names. Relatively small settlements are routinely published under the names of individuals.
The £1 million payment from the three directors Mr Joe Murray, Mr Jim Milton and Mr Terence Horgan covered 12 years of offshore payments. Because of the timing of the settlement, the directors were unable to avail of either the 1988 or 1993 tax amnesties.
The Revenue Commissioners' investigation began in late 1991 and had ended by 1993. Had they been able to avail of amnesty, the directors may have had to pay only a small portion of the £1 million.
Mr O'Malley said this raised questions about the advisability and fairness of the amnesty.
