WHILE attention focuses on his future political prospects, the central financial issue facing Mr Michael Lowry is settling his tax liabilities with the Revenue Commissioners.
The Revenue is likely to wait for the outcome of the tribunal into the Dunnes payment affair before finalising what it thinks is the full extent of these liabilities, but on the basis of what it known, the bill could be sizeable.
Mr Lowry's Dail statement last December indicated he had not finalised his tax affairs with the Revenue. This may prompt the Revenue to ask whether he met all the rules to avail of the 1993 tax amnesty. If the Revenue decides he did not, it would be open to the Commissioners to seek a full tax payment, including interest and penalties, on any income he declared in the amnesty.
The Commissioners are likely to have made extensive contacts with both Dunnes Stores and Mr Lowry over payments he received from the company, and will be hoping to glean even further information on the matter from the tribunal.
In his Dail statement, Mr Lowry said the £208,000 payment for the extension to his Co Tipperary home was a type of credit facility from Dunnes Stores. He said the payment was an advance on money he was due for work personally carried out for Dunnes. Mr Lowry said he also received payments personally from Dunnes Stores, on top of the payments made to his company, Streamline.
Mr Lowry, of course, receives a TD's salary, but his main asset is his business. The future of his refrigeration company is reliant on Dunnes Stores, which is its biggest customer. This makes it difficult to value the company.
According to Companies Office records, it had accumulated losses of £53,000 by the end of last year. In 1995, it reported losses of £26,000 while in 1995 a small profit of £15,000 was achieved. Its turnover is believed to be about £5 million.
Reports have suggested that Mr Lowry has considered either selling the company or bringing" another investor on board to realise funds. Given its reliance on Dunnes, it would appear any such move would have to be sanctioned by the group.
Mr Lowry also has property assets. He owns an extensive residence at Holycross, Co Tipperary, and another smaller bungalow in the locality. He also bought a house at Carysfort Avenue, Blackrock, Co Dublin, last year for an estimated £200,000. Some political sources believe this house has since been sold.
Mr Lowry will also have to raise funds for his election campaign as an Independent. This is expected to run up to £10,000, with substantial costs likely to be incurred through printing and advertising and canvassing such a large constituency.