Man failed to pay Revenue €150k

A BUSINESSMAN charged VAT to a customer but did not pass the money to the taxman, a court has heard.

Brendan Delappe, 58, failed to pay more than €150,000 overall in VAT and income tax to the Revenue Commissioners, Dublin Circuit Criminal Court was told.

His three adult daughters have now taken over control of his financial affairs after learning of the charges and are organising repayments of money owed, the court heard.

Revenue officer Karen Burns said Delappe failed to pay €140,626 in VAT for the period September 2007 to December 2012 and €19,615 in income tax between 2007 and 2009.

Delappe, of Kiltipper Close, Aylesbury, Tallaght, Dublin, admitted failing to deliver VAT returns, failing to pay VAT and delivery of incorrect income tax returns on dates between 2007 and 2012.

Anne Rowland, for the Revenue Commissioners, said Delappe had come under investigation after routine profiling of a firm to which he was providing services.

An examination of his invoices to this company revealed he had charged them for VAT and received cheques from them for this but not passed the money to Revenue.

Ms Burns said Delappe has made payments of €28,570 in relation to his VAT liability and there was now €112,000 outstanding.

Michael O’Higgins SC, defending, said Delappe was working setting up displays in supermarkets for a merchandising firm and had subcontracted work to others.

The court heard Delappe’s wife fell ill in 2006 and died in 2008. Ms Burns said she would agree that the offences arose out of a bad business model, poor management of money and cashflow.

Mr O’Higgins handed in a psychological report which outlined Delappe’s depression and said Delappe had been suffering under immense stress. He said Delappe was worried about the consequences of this case for his family and felt ‘riddled with guilt’.

Counsel said Delappe wanted to remedy the wrong he had done and was making steps towards this which, in his own personal circumstances, were significant.

Mr O’Higgins said the money had gone through Delappe’s hands ‘like a sieve’. He said the money had not been squandered and there was no suggestion of him living ‘the high life’.

Mr O’Higgins said the figures were not indicative of Delappe’s actual personal income but of the turnover of his business. He said Delappe had legitimate business expenses and to make payments to contractors from the turnover.

Counsel said his client’s daughters had come to his aid after the offences came to light and Delappe now handed his money over to them.

Judge Melanie Greally adjourned Delappe’s sentence until June 21.