Firm that owes Revenue €106m has just €17.5k in the bank
LPS International Plant Ltd, a company that recently settled a €106.6 million tax debt with Irish authorities, has been found to have only €17,478 in its bank accounts. The firm is currently in liquidation with significant outstanding liabilities to unsecured creditors.
Why it matters
This case illustrates the difficulty tax authorities face in recovering massive debts from insolvent corporate entities.
LPS International Plant Ltd owed €46.2m for the under-declaration of Vat, plus €14.1m in interest and €46.2m in penalties. Stock picture: Laura Hutton/RollingNews
The little-known Co Galway based plant and machinery firm which made a tax settlement totalling €106.6m with the Revenue Commissioners earlier this year has cash funds of just €17,478.50 in two bank accounts.
In June, LPS International Plant Ltd, which has listed Michael Leonard, aged 41, as its sole director since 2016, appeared on the list of Revenue defaulters for the first quarter of this year and agreed the settlement of €106.6m, with €106.2m unpaid.
The settlement related to a Revenue investigation over under-declaration of Vat.
The business owed €46.2m for the under-declaration of Vat, plus €14.1m in interest and €46.2m in penalties.
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