Interesting one this, especially if the practice is widespread.
The judge needs no introduction here...
Top club operated under form of thieving -- judge
http://www.independent.ie/national-news ... 12904.html
By Tim Healy
Thursday January 14 2010
EXCLUSIVE private members' club 'Residence' operated under "a form of thieving" in which employees' tax contributions were used to subsidise the business, a court heard yesterday.
Residence directors, the well-known restaurant owners Simon and Christian Stokes, are seeking a continuation of court protection because of its financial difficulties. Residence opened in May 2008 and is a favourite haunt of celebrities and Dublin socialites.
Mr Justice Peter Kelly said it was effectively subsidised by the "hard-pressed Irish taxpayer" through employees' tax deductions not been passed on to the Revenue Commissioners, who were owed €1.2m.
He said it was "a form of thieving" to use employees' money deducted for PAYE and PRSI contributions to subsidise a business.
The laws on examinership were not intended to provide "a form of absolution for recalcitrant directors", the judge added.After being told by chartered accountant Paul Wyse that many companies were "regrettably" doing the same thing, the judge said the accountancy description of such tax money as "working capital" appeared "extraordinary" and gave "a form of respectability to money being improperly used" by a company. Mr Wyse agreed.