Updated Thursday, 16.44
TRADITIONAL MUSIC DUO Foster and Allen have vowed to continue their legal challenges against court judgments against them, after failing in High Court against a combined €6.4m unpaid tax bill.
Michael Foster yesterday failed in his bid to have the High Court set aside a previous judgment to the value of €2,947,880.40, relating to unpaid taxes between 1986 and 1997.
The Revenue Commissioners were separately granted a judgment for €4,468,232.21 in respect of a similar case against Anthony Allen.
The Irish Times reports how the duo claimed their income was exempt from income tax because it was artistic income, and also that they had contracted a barrister to resolve their tax affairs.
Each man told the court that they had received a certificate on Revenue letterheaded paper outlining that their tax affairs were in order – but claimed that the certificates were forgeries, and that the Revenue had not received the money they had provided to settle their affairs.
The claims were dismissed, however, with Justice John Hedigan describing Foster’s application as “hopeless” because Foster had not sought to overturn the judgment, issued in 2008, at an earlier date.
Affadavits filed by the Revenue verified that the duo had each been issued with Notices of Assessments, and said it was not open to the two men to pay the artists’ exemption for the tax years concerned.
Revenue also denied having reached an agreement with the pair’s tax advisers, in conflict with their claims that they had agreed a liability of IR£175,000 in 1997.
This morning Allen told RTÉ radio’s John Murray Show that the pair would still seek to appeal – but said he and Foster had been previously assured that their affairs were in order.
“We don’t actually owe that much money at all,” Allen said, pointing out that the bulk of the unpaid liability was made up of penalties and interest.
“We’ve been trying [for] the last couple of years to sit down with the Revenue to sort it out,” he said, adding that the duo had paid the outstanding tax to their accountant, who had seemingly not forwarded it on.
Asked if he and Foster would be able to repay the €6m being demanded of them, Allen simply responded, “Not at all”.
Where would we get €6 million? We’re not U2. We’ve been working very hard for the last 30 years… but it doesn’t mean we’re multi-multi-millionaires.
Westmeath-based Allen said the duo remained committed to any outstanding bookings and that they had not considered retirement, because their ages did not impact on their ability to perform. Allen turns 60 next year, while Foster is 64.
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