Monday, March 12, 2012

Top Irish food producer jailed for garlic tax scam

(AP) ? One of Ireland's top food producers has been found guilty of dodging taxes on more than 1,000 tons of imported Chinese garlic and sent to prison.

Paul Begley admitted running a scam from 2003 to 2007 in which he instructed his Chinese suppliers to produce false export invoices labeling garlic as apples. Irish import duties on apples are just 9 percent but on garlic up to 232 percent.

The fraud allowed Begley to avoid euro1.4 million ($1.8 million) in tax. He has been trying to repay the sum since Dublin Port customs officers discovered the deception in 2007 but still owes euro700,000 ($923,000).

A Dublin judge sentenced Begley to six years in prison Friday.

Begley Brothers Ltd. employs 150 people in growing, importing and distributing fruit and vegetables across Ireland.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/aa9398e6757a46fa93ed5dea7bd3729e/Article_2012-03-09-EU-Ireland-Garlic-Scam/id-0aade7406c354b54ae111c368891458b

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