A CATHOLIC priest from Co Cork has been fined more than €6,000 for tax offences following his failure to disclose income he received from the rental of at least 11 properties over a five-year period.
Fr Tadhg O'Donovan (46) recently made a settlement with the Revenue Commissioners for €213,222, including a tax liability of €81,265, a civil penalty of €81,265 together with interest payment on his liabilities and a penalty of €50,692.
Yesterday at Cork District Court, Fr O'Donovan, who is the curate of Whitechurch near Blarney in Co Cork and formerly curate in Araglin near Kilworth in north Co Cork, pleaded guilty to a total of 10 tax offences under the Taxes Consolidation Act 1997.
He pleaded guilty to five charges of failing to file correct tax returns for five tax periods between 1998 and 2002 inclusive, while he also admitted a sixth charge of failing to provide a correct statement of affairs.
He also pleaded guilty to a further three charges of failing to file correct rental income statements for three tax periods between 2001 and 2002 inclusive, while he also admitted a 10th charge of failing to keep proper records.
The assistant principal at the Revenue Commissioners investigations and prosecutions division, Fergus Dempsey, told the court that Revenue learned Fr O'Donovan had had an interest in 13 properties since 1989. He was in receipt of rental income from at least 11 of these, with most of the money coming in the form of Health Service Executive (HSE) rent supplements paid to people who can't afford privately rented accommodation, said Mr Dempsey.
None of this was disclosed by Fr O'Donovan to the Revenue Commissioners. He also failed to inform them of the disposal of two properties in the tax period 1998/1999 and 2002 on which he made capital profits. Mr Dempsey said Revenue advised Fr O'Donovan in 2004 they were investigating his tax affairs and that he was required to complete a statement.
"The statement of affairs that he submitted was incorrect because he failed to disclose a bank account into which he was lodging rental income," said Mr Dempsey, adding that at about the same time, Fr O'Donovan hired a new accountant and instructed him to make a disclosure.
This disclosure covered 2000-2002 but, when investigators from the Revenue Commissioners checked with the HSE and the Department of Social and Family Affairs, it emerged he had not made a full disclosure.
"Not only did he not disclose the rents for all the properties that he had let but he also understated the rental income from the properties that he had disclosed," said Mr Dempsey. He said Fr O'Donovan had since made a settlement with the Revenue Commissioners.
Fr O'Donovan had paid €20,818 in settlement in 2004 and last week he paid a further €192,404 in respect of his total tax bill of €213,222, said Mr Dempsey, adding that Fr O'Donovan had no previous convictions.
Fr O'Donovan, who represented himself in court, apologised for his actions. "I am just happy to have reached a settlement with Mr Dempsey and I am sorry about the whole situation and that it took so long," he said.
Judge Leo Malone imposed fines totalling €6,050 and said he was dealing with the case in this manner on the basis that Fr O'Donovan had settled all his liabilities and no monies were outstanding to the State.
Last week, Fr O'Donovan's brother, John O'Donovan, Kilvealton East, Mallow, pleaded guilty to six offences arising out of failure to declare rental income from tenants. He was fined €7,300 by Judge Michael Pattwell at Mallow District Court.
Mr O'Donovan, whom the court heard had paid €55,367 to Revenue in back taxes including civil penalties and interest, was given a one-month jail sentence suspended on condition he keep his tax affairs up to date.
