Galway Bay fm newsroom - The High Court has been asked to impose the longest disqualification period possible on a Clonberne company director who has admitted to his role in a fraudulent scheme to avoid paying VAT on some €8m of machinery.
The application has been made in respect of Kevin Rabbitte of Clonberne, Ballinasloe who was the director of a company called Westman Plant and Civils Limited, which was put into liquidation in 2017.
The court heard that the firms VAT number was used to import the plant and machinery mainly from the UK, into Ireland between July 2014 and June 2015.
It is claimed that VAT due on the goods bought in the UK by Mr Rabbitte was not paid to revenue when the machinery was subsequently sold on in Ireland.
The company never declared its purcahses or any subsequent sales for VAT purposes. The company filed nil VAT returns for the relevant period, it was claimed.
The application to disqualify Mr Rabbitte of Clonberne, Ballinasloe, was sought by the company's liquidator Mr Myles Kirby.
Mr Kirby claimed that arising out of his investigations Mr Rabbitte had knowingly participated in a fraud which is known as "carousel fraud" or Missing Trader Intra-Community VAT Fraud.
Mr Rabbitte, who claims he was asked on behalf of an unnamed individual, would turn up at machinery auctions in the UK. He would bid for the machinery and if successful he would used Westman's VAT number to acquire the goods.
The individual in question would then pay Mr Rabbitte a commission.
Westman, the court also heard never filed any returns to the CRO and was eventually struck off he Register of Companies.
Before the application to have Mr Rabbitte disqualified John Kennedy SC for the liquidator told the court that "at the 11th hour" Mr Rabbitte, represented in court by solicitor Robert Dore, had consented to certain orders being made.
Mr Rabbitte consented to a declaration that as an officer of the company he was 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 length of the disqualification period is to be determined by the court.
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