Businessman who admitted role in €1.2m tax fraud disqualified from acting as company director for 14 years
The High Court has imposed one of the longest disqualification periods ever handed down on a company director who admitted his role in a scheme which resulted in Revenue being defrauded of more than €1.2m.
Mr Justice Brian O'Moore ruled Kevin Rabbitte who was the director of a company called Westman Plant and Civils Limited, should be disqualified for a period of 14 years and three months.
Mr Rabbitte he said had been involved in what "a carefully coordinated and planned fraud."
Mr Rabbitte he said was given a "5% discount" off the maximum 15 year disqualification allowed under the 2014 Companies Act because he had made certain admissions and consented to various orders shortly before the bid to disqualify him was due to be heard by the High Court.
It is one of the longest disqualification periods ever handed down by the Irish courts.
Earlier this week Mr Rabbitte consented to a declaration that as an officer of the company he had knowingly carried out business on behalf of Westman with the intention to defraud the firm's creditors, including the Revenue Commissioners.
He also consented to being made personally responsible for €1.5m of the company's debts and liabilities, and that he would be disqualified from acting as a company director for a period.
The court heard that as part of the fraud Westman's VAT number was used to purchase machinery and plant equipment imported mainly from the UK, into Ireland between July 2014 and June 2015.
He would bid for the machinery and if successful he would used Westman's VAT number to acquire the goods.
It is claimed that VAT due on the goods bought in the UK was not paid to revenue when the machinery was subsequently sold on in Ireland. This resulted in Revenue being defrauded of €1.2m.
The company, incorporated in 2014 and wound up in 2017, never declared the purchases or any subsequent sales for VAT purposes. The company filed nil VAT returns for the relevant period.
The application against Mr Rabbitte of Clonberne, Ballinasloe, Co Galway was sought by the company's liquidator Mr Myles Kirby, represented in court by John Kennedy SC and Sally O'Neill Bl.
Mr Kirby claimed Mr Rabbitte had knowingly participated in a fraud which is known as "carousel fraud" or Missing Trader Intra-Community VAT Fraud.
Mr Justice O'Moore said while it "had it complexities" the "nature of the fraud was fairly straight forward". It was also a serious matter, which merited "a significant" disqualification.
The Judge said Mr Rabbitte, represented by solicitor Robert Dore was entitled to a small discount after he had consented to certain orders, and thus had avoided the costs of the full hearing of the application seeking disqualification orders.
The Judge said he had agreed to be liable for the company's debts up to €1.5m. However given Mr Rabbitte's available assets there was no reality of that sum being recovered.
The judge also noted that Mr Rabbitte had claimed he was a front for an unnamed individual, to purchase machinery auctions in return for a commission.
The judge remarked that a third named party had not been named by Mr Rabbitte, and that both Mr Rabbitte had claimed he and his wife were in fear and were "petrified" of this unnamed third party.
The Judge while this was an unusual part of the case it was not something the court could take into account in regards to the disqualification order, the Judge said, adding that in a sworn statement Mr Rabbitte had admitted to acting and dealing with the unnamed individual without any fear of intimidation.
