Irish Property Developers Failed To Declare Fee

Property investors Brian and Mary Patricia O’Donnell failed to declare a £120,000 (€149,000) fee when they filed for bankruptcy in Britain, the Irish Times has reported.

The fee for their managing of offices in London has been brought up in court this week, as Bank of Ireland attempt to prevent the couple from filing for bankruptcy.

The couple owe the bank €71m.

The couple earn £120,000 a year for managing Columbus Court; the London headquarters of Swiss bank Credit Suisse.

The O’Donnells’ bought the property in their financial heyday.


The Irish Times reported how BofI’s barrister Gabriel Moss had questioned Mr O’Donnell in court on Wednesday, saying the developer he had "completely failed" to reveal it.

"You certainly weren’t on state benefits, or tax credits," he said.

Mr O’Donnell was asked if he genuinely believed bankruptcy had been correctly filed by failing to mention the fee.

The Bank is seeking to disprove the O’Donnells’ claim that their centre of main interest is in London, not Ireland.

This would need to be proved before the couple, who are Irish citizens, can declare bankruptcy in Britain.

But Mr O’Donnell said they had not then realised the fee needed to be declared in the petition.

"It was subsequently revealed at every turn," he said. He rejected Mr Moss’s claim he had no excuse for not mentioning the fee because he was a solicitor of 30 years.

"I wasn’t answering this as a solicitor, we were under extreme pressure," explained Mr O’Donnell.

"You’re playing games," said Mr Moss. "I am not playing games," replied Mr O’Donnell.

The case continues.

(IT/GK)