A Ballyshannon publican has been jailed for six months for trying to avoid paying gift tax on a bar he bought from his grandfather for half its market price.

At the local court on Friday Brendan Whoriskey who runs the Travellers' Rest in Cashelard near Ballyshannon described himself in his tax return as a nephew, which meant he didn't have to pay gift tax on the pub, valued at ¤285,691 which he purchased from Vincent Whoriskey.

At Ballyshannon District Court he was jailed for six months, three months of which were suspended, for making an incorrect tax return on April 25th 2005.

SERIOUS OFFENCE

Passing sentence Judge Desmond A Zaidan told Whoriskey that he had committed a serious offence and he couldn't play 'ducks and drakes' with the system.

The court heard that he had paid ¤152,369 for the premises, leaving a difference of ¤133,322.

The difference was effectively a gift from the vendor, explained Fergus Dempsey, assistant principal with the criminal investigation unit of the Revenue Commissioners.

But when it came to light that he was a grandson, he was liable for tax of ¤16,837 which increased with interest and penalties for non-payment, to a liability of ¤43,597.

The court heard that he has now paid almost half of the amount due in taxes and penalties and given post-dated cheques for the remaining amount to the Revenue Commissioners.

But Judge Desmond A Zaidan told Whoriskey that he had committed a most serious offence.

"You cannot fiddle with the taxes by playing ducks and drakes with the system," he said.

Before handing down the sentence, the judge suggested that Whoriskey might wish to make a substantial donation to charity.

SUBSTANTIAL

"And I mean substantial," he added as solicitor John Murray moved to confer with Whoriskey, reminding them that the offence carries a penalty of 12 months' jail and a ¤3,000 fine.

When Mr Murray said the defence was willing to donate ¤3,000 to charity the judge said: "I don't think your client got the message. He will now."

He imposed the prison sentence and fixed bail in the event of an appeal at ¤13,000 - Whoriskey's own surety of ¤3,000 and an independent surety of ¤10,000.

Whoriskey lodged notice of appeal against sentence directly after the hearing.

The pub, close to the ancestral home of Tony Blair, was made famous by the British PM in that he had his first pint of Guinness there.