Mr Michael Hogan, a former publisher of In Dublin magazine, has taken High Court proceedings to stay the Revenue Commissioners' application next Monday to have his former publishing company restored to the Companies Register.
The Revenue wants to restore the company, KCD (Dublin) Ltd, to the register of companies in order to allow it recover tax allegedly due to it.
Mr Hogan claims the Revenue has included confidential documents for next Monday's hearing which would disclose comprehensive details of his and his wife's financial affairs. His application to stay the Revenue application to restore the company will be heard on Friday.
In its restoration application, the Revenue claims KCD was struck off for a failure to make annual returns and alleges the company owes at least €944,573 for VAT, PAYE and PRSI for the years 1992 to 1999.
Mr Hogan claims Revenue officials, backed by gardaí, visited his home and offices in Camden Place, Dublin, and took away documentation. He claims that he made voluntary disclosure of previously undisclosed income and that details of his and his wife's financial affairs were submitted to the Revenue on the sole basis that they would be received in confidence and under no circumstances would come into the public domain.
In an affidavit, he said he purchased In Dublin around 1992. KCD (Dublin) Ltd was struck off the Companies Register in 1999. A portion of the magazine's income was derived "from advertising of a type which promoted certain sexual services". He admitted he was prosecuted for offences under the Criminal Justice (Public Order) Act, 1994.
In August 1999 tax consultants had notified the Revenue authorities that the company intended to make a full voluntary disclosure of previously undisclosed income.
Mr Hogan said the consultants examined the number of sexual services advertisements which had been placed in the magazine and calculated the sum which represented undisclosed income. The calculations were submitted by way of voluntary disclosure to the Revenue.
Mr Hogan said he gave a bank draft for £300,000 to the Revenue in September 2000. At the same time he furnished a cheque drawn on his own bank account and dated December 3rd, 2000, for £743,912. In August 2001 he was contacted by his tax consultants and requested to provide a replacement cheque, which he did, for £743,912.
Despite making the payments, he got a letter from Mr Donal Buckley of the Revenue Investigations and Prosecutions Division in January 2002 informing him of an investigation which was about to commence. On July 16th, 2002, at 8 a.m., four Revenue officials attended with a garda at his home and produced a search warrant. On the same date, officials went to his place of work at Camden Place, Dublin, with a warrant.
Although there had been correspondence between his solicitor and his tax consultants with the Revenue, there had been no reference to the fact that his company had been struck off the Companies Register or that the company should be restored to the register.
Mr Hogan said his tax consultants informed the Revenue in March 2000 that he was making voluntary discovery on the basis that the information was strictly private and confidential. The disclosure documents contained comprehensive details of his and his wife Marie's financial affairs.
He was shocked and distressed by the appearance in full of the voluntary disclosure in an affidavit sworn by Mr Buckley. Mr Buckley referred to the December 3rd, 2000, cheque (for £743,912) as having bounced.
Neither he nor his bankers were aware that that cheque or the reissued cheque had been presented for payment.
Mr Hogan produced a letter from his bank, AIB Capel Street, which stated that "insofar as can be reasonably ascertained" neither cheque had been presented for payment. He denied a Revenue claim that further undisclosed receipts existed. He said the Revenue petition to restore KCD (Dublin) should be struck out or dismissed.