A Clare building contractor, who walked free from court earlier this year for a €2.594 million Revenue tax fraud, may yet face time behind bars.
At Ennis Circuit Court in April, married father of four, Patrick Mahony (49) walked free after receiving a suspended three year jail term for “significant tax fraud” had cost the State a “tremendous amount of money”.
However, the Courts Service confirmed yesterday it has received an appeal from the Director of Public Prosecutions (DPP) against what the DPP claims is the undue leniency of the sentence imposed.
A Courts Service spokesman said that a date has not yet been fixed for the appeal to be heard at the Court of Criminal Appeal.
In his judgement in April, Judge Gerald Keys said that he was prepared to suspend the three year jail term on Mr Mahony as jailing him would rob his family of their only source of income and put the family home at risk of re-possession.
Judge Keys said that Mr Mahony had co-operated fully with Revenue, has no previous convictions, had pleaded guilty and received no monetary gain from his fraudulent conduct.
Judge Keys also fined Mr Mahony €10,000 and give him 12 months to pay the fine.
The judge noted that there is a €4m judgment against Mr Mahony who continues to work in England where his tax affairs are in order.
Judge Keys said that Mr Mahony couldn’t be described as a ‘white collar’ businessman as he didn’t have the background or skills to run a business employing over 300 people.
None of the €2.594m has been paid back to Revenue – Mr Mahony’s company’s Boxform Ltd went into liquidation in April 2008.
In 2007, Boxform Ltd had a turnover of €8.6 million and employed 326 people over a 12 month period.
Judge Keys said that Mr Mahony of Craglea, Woodstock, Ennis on receipt of finding out from the company book-keeper the VAT, PRSI and PAYE sums that had to be paid to Revenue in 2006 and 2007 had directed the book-keeper to reduce the amounts to be owed.
Judge Keys said: “This was a deliberate act of fraud on your part and cannot be excused.”
He added: “If everyone behaved in the manner that you did, this country would have no revenue for services and no sustainable economy and people would have no jobs.”
Judge Keys said that Mr Mahony’s Boxform Ltd made 12 incorrect VAT returns – six in 2006 and six in 2007.
Judge Keys said that it has been submitted to him that Mr Mahony’s actions were “not out and out fraud – that it wasn’t out of greed”.
He said: “Mr Mahony found it difficult to be paid and this resulted in a cashflow problem. Also, there was a downturn in business and there was an attraction in reducing the returns so that the company could possibly continue.”
Judge Keys said that there is no evidence of Mr Mahony pocketing the money that should have been returned to the Revenue.
He said that at one time, Mr Mahony owned five properties but they are all owned by the bank now.
Boxform had lucrative contracts with some of the country’s biggest constructions firms, local authorities and was involved in projects such as the Moat bypass and Waterford bypass.
The court heard how Patrick Mahony “consistently, knowingly and willfully” filed incorrect VAT returns between 2006 and 2007.
The charges relate to Mr Mahony’s time as director of Boxform Ltd – a
Clare based company that traded as sub-contractor involved in steel fixing, concrete finishing and labour.
The firm went into liquidation in April 23rd 2008 after a Revenue query into its affairs.
Mr Mahony was barred from a company director for five years following a High Court action initiated by the company’s liquidator.
