THREE directors of the State's largest public relations company made a tax settlement of £1 million through an offshore company registered in Panama.
The settlement was made in "1992 but details have only emerged now. It is one of the biggest settlements known in recent years and relates to offshore payments from clients of the directors during the 12 years up to 1990.
The three, Mr Joe Murray, Mr Jim Milton and Mr Terence Horgan, are all directors of Murray Consultants, whose clients include some of Ireland's largest companies. Following an investigation by the Revenue Commissioners which began in 1991, the three men settled in 1992, making a £1 million payment through a Panamanian registered company, Leriona Shipping. This meant the three were not named individually in the list of tax settlements published each year by the Revenue Commissioners.
Leriona Shipping was described as an "international consultancy" in the Revenue list and the amount of tax underpaid, the penalties charged and the interest owed were not disclosed.
None of the three directors was available for comment yesterday, but sources close to Murray Consultants' say the settlement related only to the three men's personal tax affairs and not Murray Consultants' tax affairs.
Murray's clients include some of Ireland's leading companies. It also carries out work for a number of State agencies. The company would not be able to carry out work for these agencies if its tax affairs were not in order.
It is understood substantial payments were made by clients in to offshore accounts for work carried out in Ireland and abroad. The payments were made through a number of mechanisms designed "to minimise tax liabilities. As part of the settlement, all of the money held offshore was returned. The payments related mostly to once "off projects.
The three directors dealt directly with the Revenue Commissioners in coming to a settlement and paid the settlement out of their own resources.
Murray Consultants was substantially reorganised after the settlement, with £650,000 of the company's reserves distributed to the three directors who invested them in a pension fund.
The settlement made by the three directors was completed just too early to avail of the subsequent tax amnesty.
