Revenue’s latest Tax Defaulters List reveals that two Co-Galway companies linked to director Michael Leonard owe a combined €110.9m in unpaid taxes, interest, and penalties. LPS International Plant Ltd accounts for €106.6m of this total, while MPL Plant Hire Ltd owes €4.32m. Both firms are currently in liquidation following tax audits that uncovered significant under-declarations of VAT and payroll taxes.
How did the tax liabilities reach €106.6 million?
The massive debt attributed to LPS International Plant Ltd stems from a €46.2m under-declaration of VAT, according to Revenue. Under Irish tax law, Revenue applies interest and penalties to such deficits; in this instance, the authority added €14.17m in interest and another €46.2m in penalties. This brought the total liability to exactly €106,609,749. Records indicate that while the company reported a profit of €3.6m at the end of 2023, the vast majority of the tax debt remains outstanding.
What is the scale of the debt at MPL Plant Hire Ltd?
MPL Plant Hire Ltd, also based in Knockdoe, Claregalway, faces a total liability of €4,316,211. Revenue’s audit identified under-declared PAYE, PRSI, USC, and VAT. The base debt was increased by €604,449 in interest and €1,858,074 in penalties. As of the latest update, €4,124,374 of this balance remains unpaid. Like LPS International, this firm is now in liquidation.
How does corporate tax enforcement impact individual taxpayers?
Revenue’s list also highlights individual cases, such as that of John Reid, a solicitor and landlord from Tara Hill, Gorey. Mr. Reid owes €1.75m, comprising €792,280 in under-declared income tax, plus €736,086 in interest and €234,693 in penalties. This case demonstrates that Revenue’s audit powers extend beyond corporate entities to individual income tax returns, where interest and penalties can often exceed the original tax liability.
Comparison of Recent Tax Defaulter Trends
| Entity | Primary Tax Debt | Total Liability |
|---|---|---|
| LPS International Plant Ltd | €46.2m (VAT) | €106.6m |
| MPL Plant Hire Ltd | €1.86m (PAYE/VAT) | €4.32m |
| John Reid (Individual) | €0.79m (Income Tax) | €1.75m |
Frequently Asked Questions
What happens to tax debt when a company goes into liquidation?
When a company is liquidated, its assets are used to pay creditors. Revenue ranks as a preferential creditor for certain taxes, but if the company has insufficient assets, much of the debt may remain uncollectible.
Are penalties always equal to the tax owed?
No. Penalties are calculated based on the nature of the default and the cooperation of the taxpayer. In the case of LPS International Plant Ltd, the penalties were substantial, effectively doubling the original VAT liability.
Where can I find the full list of tax defaulters?
Revenue publishes the Tax Defaulters List periodically on its official website, detailing settlements, court fines, and convictions.
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