TD Wallace 'fit to serve' despite company's false tax declarations07/06/2012 - 09:56:38
Independent TD Mick Wallace has insisted he is fit to serve in the Dáil despite his company making false tax declarations to Revenue and landing a €2.1m settlement.
The Wexford deputy knowingly gave wrong information to the tax chiefs to save his failing construction firm.
"I acknowledge what I did was wrong but I did it in good faith," said Mr Wallace.
"I really did believe that I would be able to pay the VAT at a later stage."
He said he deliberately under-declared VAT owed by the company MJ Wallace Ltd but hoped to pay it back at a later date, insisting he thought it was the right thing to do at the time.
The Independent TD attributed his company's problems to the economic crisis, which had become too much for his business in 2008 and 2009.
"I didn't declare all the VAT I owed because I would have been put out of business there and then," he said.
Mr Wallace said he was trying to save his apartment sales company and the jobs of the 60 people working for him.
In an agreement with Revenue, the company was found to have under-declared around €1.4m in VAT. But with interest and penalties piled on, it now owes some €2.1m.
Mr Wallace is not personally liable to make the payment. He said it is the company's debt and as it is now insolvent, the bill may never be settled.
When asked if he believes he is still fit to serve in the Dáil, the TD told RTÉ: "I believe I am."
The €2.1m settlement will be published on the Revenue's quarterly list of tax defaulters next week.
ACC Bank secured a €19.4m judgment against MJ Wallace Ltd last November and a receiver was appointed over the company's assets.
Mr Wallace said he has been threatened with bankruptcy a number of times over the last year, but insisted he will fight any such moves.
A TD who is declared bankrupt is required by law to resign from the Dáil.
Fine Gael’s Charlie Flanagan questioned Mr Wallace’s suitability to continue serving in the Dáil.
The party chairman called on the Independent TD to clarify his position.
“Deputy Wallace’s admission today that his company’s €2.1m settlement with the Revenue Commissioners is unlikely to ever be paid raises serious questions about Deputy Wallace’s suitability to serve as an Oireachtas member,” he said.
“It sets an alarming precedent when a member of the House admits to having knowingly filed an inaccurate VAT return.
“The idea that his company – of which he is the only director – is insolvent, but that he himself remains tax compliant, is playing ducks and drakes with the conventions of Leinster House.
“I would urge Deputy Wallace to discuss his position with the appropriate authorities.”
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