RTE 1st October 2018 00:47:57 A real estate developer has been arrested on suspicion of tax fraud after he was allegedly told he owed the government $3.4 million for a “I-don’t-know-what-it” investment.
James McArthur, of Doolin, Co Down, was arrested on Monday at a police station in Doolinfin.
He was bailed to appear at Dooling Magistrates Court on Wednesday.
McArthur’s lawyer said his client had “no intention of returning” to his home in Doonbeg, Co Tipperary, which he owns and rents to his business partner, Peter Tapper, who also runs a commercial property company.
Tapper was arrested after a police raid on his property on January 13.
The arrest came just hours after former Tipperair boss Alan Kelly was arrested by gardai in his home town of Monaghan for alleged tax evasion and fraud.
Gardai said he was facing a number of charges relating to tax evasion.
On Tuesday, it was revealed that Mr Kelly was also suspected of a fraud in relation to an investment he made in his property in 2014.
Mr Kelly’s lawyer had previously said that the allegations were “bogus”.
“I have been advised by my legal team that there is no basis for these charges,” he said.
However, gardai did allege that McArthur made a “gross misrepresentation” to them about his assets.
“The gardai have obtained documents that show the property was in fact worth about €2 million at the time of the alleged misrepresentation,” said a statement from the gardai.
“Mr McArthur was advised that his real estate assets were worth €2.2 million and that he had no intention of selling the property.”
McAvoy, who was also a partner at Doon Beg Commercial Real Estate, was previously charged with tax evasion in 2015 after allegedly lying to gardai about his company’s tax arrangements.
A previous conviction in 2012 was for tax evasion relating to the sale of a house in the County Clare area.
He pleaded guilty to a charge of tax evasion at a later hearing.
In 2016, McAvoy was sentenced to two years in prison for tax fraud.
He will be eligible for parole in 2021.