No tax liability yet incurred at Celtic Helicopters due to inquiries

Celtic Helicopters, the company established by Mr Ciaran Haughey and Mr John Barnicle, has not yet incurred a tax liability arising from the various inquiries into its affairs, according to accounts filed recently.

The company made a small profit in the year to March 31st, 2001, the accounts indicate, with the accumulated profit and loss account changing from an accumulated loss of €205,947 (£162,163) to a profit of €47,839. The company's annual return to December 31st, 2001, records a total indebtedness of €879,514. One of the lenders to the company has a guarantee from former Taoiseach Mr Charles Haughey.

The notes to the accounts state that certain transactions involving the company have been examined by the McCracken and Moriarty tribunals, that the company has been the subject of an inquiry by an authorised officer and that, in February 1998, the Revenue commenced inquiries into the taxation affairs of the company.

"As yet, the financial implications, if any, of these matters cannot be ascertained with certainty. The directors believe that adequate provision has been made for all of the company's taxation liabilities."

The notes also state that, should any liabilities arise out of the various inquiries, the directors believe they could be financed out of future cash flows and surplus assets.

During the year, the company sold one of its helicopters to a connected company for €266,700. The company's remaining helicopter is valued at €371,094. The company has tangible assets of €912,176 and called up share capital of €470,317. The raising of this share capital is one of the matters which has been investigated by the Moriarty tribunal.

Celtic Helicopters Maintenance & Services Ltd, which is owned by Celtic Helicopters, made a small loss during the year to March 31st, 2001, its accounts indicate. The accumulated losses went from €92,638 to €104,696.

It owns one helicopter which is hangared and maintained by its parent at no charge and with the parent having use of the helicopter at no charge.

Mr Ciaran Haughey and Mr Barnicle are also directors of Medeva Properties Ltd. This company has tangible assets valued at €552,601. It has two charges registered against it in relation to two helicopters. The company's accumulated profit increased from €21,598 to €54,583 in the year to March 31st, 2001.

In October 2000, Celtic Helicopters was the subject of the first High Court order to a company, on foot of an application from the Companies Registration Office, compelling it to file accounts. Its subsidiary company, Celtic Helicopters Maintenance & Services Ltd, was listed for strike off around the same time but has since been returned to normal status.