Revenue could seek disclosure of Price Waterhouse report in audit

THE Revenue Commissioners would have the power under the 1992 Finance Act to seek disclosure of the Price Waterhouse report as part of an audit of the affairs of Dunnes Stores.

The report is said to contain the names of public figures given money by Mr Ben Dunne during his time as chairman of Dunnes Stores. Information from the report about Mr Lowry's dealings with Mr Dunne led to Mr Lowry's resignation.

It is not clear whether Dunnes would have any basis for objecting to handing over the document. Documents sought should be relevant to the Revenue investigation.

The report was produced at the request of Ms Margaret Heffernan after she took over from her brother as head of Dunnes Stores in 1993.

She sought the report to obtain more information about business deals made by her brother when he had control of the company. He was known to make independent business decisions, often involving significant amounts of money, without consulting his brother, Mr Frank Dunne, or his sisters, Ms Heffernan and Ms Therese Dunne, who served with him on the board.

Mr Ben Dunne would come to arrangements with people with whom he did business. Company cheques for large amounts could be cashed with his signature alone.

Following her takeover as head of Dunnes Stores, Ms Heffernan changed the way in which the company operated.

The 1992 Finance Act, brought into law when Mr Bertie Ahern was Minister for Finance, gave the Revenue enhanced powers to look at the financial documents of a company in the circumstances of an audit.

Companies assess themselves for tax and are on occasion audited in order to ensure their information is correct. Audits are also carried out subsequent to good quality information becoming available to the Commissioners.

In a situation like the current controversy over payments to Mr Lowry, the Revenue Commissioners would be keeping a close eye on the case.

The work on Mr Lowry's home was carried out by a company from Newbridge, Co Kildare, called Faxhill Homes Ltd, and paid for by Dunnes Stores.

According to reports the Price Waterhouse investigation discovered documents indicating that the work on Mr Lowry's home had in fact been in voiced as work carried out on the ILAC centre for Dunnes Stores. There is no suggestion that Mr Lowry knew of this.