CP's nabbed by the Taxman

Poly

"Central Park night club in Galway paid €3.59m in settlement of under-declared VAT, PAYE and PRSI."

http://www.rte.ie/news/2010/0312/revenue.html

What are they charging in these days? expect to see a small increase.

mikom

Kinda tarnishes the Halo.

Kristopherus

Will be interesting to see if they'll up their prices :D:D

joeKel73

Haven't CPs been closed for "renovations" for the last 6months? No sign of any work going on though...

dilallio

Central Park night club in Galway paid €3.59m in settlement of under-declared VAT, PAYE and PRSI.
This was a result of an investigation by the Revenue's Deposit Interest Reporting and off-shore assets unit.

The revenue commissioners must have raided the Aran Islands Post Office.

challengemaster

foto joe wrote: »

Haven't CPs been closed for "renovations" for the last 6months? No sign of any work going on though...

well, not 6 months but certainly 4 months anyway... Interesting find!

They don't really have to up their prices anyway... The way all the clubs in galway work is on a drink price = profit scheme, so most are free in most nights with stamps (stampers on shop st) anyway

the actual cost of drink and what they charge in the club is where all the profits are made.

Cost of a large bottle(200ml) of vodka (huzzar) from harvest in galway - €15
Of course, its not going to cost a club/bar that much... but for arguements sake...
Cost of a triple vodka/coke - €19 (going from a receipt from someone else)
If you say for the sake of it, the coke is €4
One measure of vodka is about 20-25mls
So...you could say they make €40 for every 200ml of vodka, over 250% profit.

I know Karma has a capacity of 670 people... so if you say that CP's or halo have the same, and if only 25% of them get one vodka/coke, you're looking at 20 bottles of vodka, and ~165 bottles of coke, and a profit of almost €1500. I know this model ignores the array of variables that come into it, but either way...they're making more than enough profit over 4 and a half hours (open 10.30, close ~2)

Tbh, they don't need to increase anything.

cranky bollix

if cps charge in then they make a large portion of their revenue from the door, as its all profit and very easy to hide from the taxman - probably one of the reasons they were caught

snubbleste

How can the revenue from the door be all profit??


Anyway, the €3,598,564.00 breaks down as
Tax Owed 1,145,608.00
Interest & Penalties 2,452,956.00
gives an indication it was ongoing for some time.

Zzippy

challengemaster wrote: »

well, not 6 months but certainly 4 months anyway... Interesting find!

They don't really have to up their prices anyway... The way all the clubs in galway work is on a drink price = profit scheme, so most are free in most nights with stamps (stampers on shop st) anyway

the actual cost of drink and what they charge in the club is where all the profits are made.

Cost of a large bottle(200ml) of vodka (huzzar) from harvest in galway - €15
Of course, its not going to cost a club/bar that much... but for arguements sake...
Cost of a triple vodka/coke - €19 (going from a receipt from someone else)
If you say for the sake of it, the coke is €4
One measure of vodka is about 20-25mls
So...you could say they make €40 for every 200ml of vodka, over 250% profit.

I know Karma has a capacity of 670 people... so if you say that CP's or halo have the same, and if only 25% of them get one vodka/coke, you're looking at 20 bottles of vodka, and ~165 bottles of coke, and a profit of almost €1500. I know this model ignores the array of variables that come into it, but either way...they're making more than enough profit over 4 and a half hours (open 10.30, close ~2)

Tbh, they don't need to increase anything.

A measure of vodka or any spirit is 35ml in Ireland. Still a lot of profit on a bottle, but thats how clubs work...

thesandeman

Zzippy wrote: »

A measure of vodka or any spirit is 35ml in Ireland. Still a lot of profit on a bottle, but thats how clubs work...

And a large bottle is 700ml not 200 as he/she said. Not really surprised at the news really seeing that the owners are ex-bank officials.

stunt_penguin

foto joe wrote: »

Haven't CPs been closed for "renovations" for the last 6months? No sign of any work going on though...

They're rennovating alright, the place should be good to go again soon enough, stay tuned

Euro_Kraut

stunt_penguin wrote: »

They're rennovating alright, the place should be good to go again soon enough, stay tuned

It seems odd to me that a company facing a €3.5 million tax bill in the middle of a recession would decide that it is a good idea to stop trading for 4 months and spend money on renovations.

challengemaster

thesandeman wrote: »

And a large bottle is 700ml not 200 as he/she said. Not really surprised at the news really seeing that the owners are ex-bank officials.

my bad - thats what i get for doing chemistry work at the same time as boards

fend

I dont see CP's opening under the same management.... Works havn't been going on there for a while. I recon it will be sold.

witnessmenow

challengemaster wrote: »

well, not 6 months but certainly 4 months anyway... Interesting find!

They don't really have to up their prices anyway... The way all the clubs in galway work is on a drink price = profit scheme, so most are free in most nights with stamps (stampers on shop st) anyway

the actual cost of drink and what they charge in the club is where all the profits are made.

Cost of a large bottle(200ml) of vodka (huzzar) from harvest in galway - €15
Of course, its not going to cost a club/bar that much... but for arguements sake...
Cost of a triple vodka/coke - €19 (going from a receipt from someone else)
If you say for the sake of it, the coke is €4
One measure of vodka is about 20-25mls
So...you could say they make €40 for every 200ml of vodka, over 250% profit.

I know Karma has a capacity of 670 people... so if you say that CP's or halo have the same, and if only 25% of them get one vodka/coke, you're looking at 20 bottles of vodka, and ~165 bottles of coke, and a profit of almost €1500. I know this model ignores the array of variables that come into it, but either way...they're making more than enough profit over 4 and a half hours (open 10.30, close ~2)

Tbh, they don't need to increase anything.

The drinks industry doesnt work the same as regular shop, just because you can buy huzzar in harvest for €15 does not mean a pub buys it for less...

thesandeman

witnessmenow wrote: »

The drinks industry doesnt work the same as regular shop, just because you can buy huzzar in harvest for €15 does not mean a pub buys it for less...

It does if youre fiddling the taxman.

PomBear

I Hope to Hell both sell the propertys because Halo's dull as hell
Haven't enjoyed CPs since I was in first year
Both fulls of G4s
Ridiculously overpriced
****e music in both and a pure Random playlist in Halo... See more
Halos too relaxed
I could go on.....


imagine how many people lost their jobs because that **** wanted to stay richer than he is, wanker, the greed of some people amazes me sometimes.

PomBear

witnessmenow wrote: »

The drinks industry doesnt work the same as regular shop, just because you can buy huzzar in harvest for €15 does not mean a pub buys it for less...

Are you suggesting they pay more

TouchingVirus

witnessmenow wrote: »

The drinks industry doesnt work the same as regular shop, just because you can buy huzzar in harvest for €15 does not mean a pub buys it for less...

Very true, fa friend told me it's cheaper for somebody to buy a large bottle of Huzzar/Smirnoff/other vodka brand from Tesco than it is for his pub to buy it from a wholesaler. Gotta say I was a bit shocked...

Xiney

Pubs are a notoriously easy mark for the revenue.

They do lots of business, and cash business at that. There's a lot of room for cooking the books - which many of them invariably do.

The part that is most interesting to me is that they were done for non-payment of PAYE and PRSI. This means that they were either a) screwing people out of their stamps or b) employing people under the table (who may or may not have had the legal right to work in this country, or who may have been claiming on the side)

When we've got so many people unemployed around the city, county and country, the fact that they'd mess about with the people they do employ is really just scumbaggery.

HoPpiE

challengemaster wrote: »

well, not 6 months but certainly 4 months anyway... Interesting find!

They don't really have to up their prices anyway... The way all the clubs in galway work is on a drink price = profit scheme, so most are free in most nights with stamps (stampers on shop st) anyway

the actual cost of drink and what they charge in the club is where all the profits are made.

Cost of a large bottle(200ml) of vodka (huzzar) from harvest in galway - €15
Of course, its not going to cost a club/bar that much... but for arguements sake...
Cost of a triple vodka/coke - €19 (going from a receipt from someone else)
If you say for the sake of it, the coke is €4
One measure of vodka is about 20-25mls
So...you could say they make €40 for every 200ml of vodka, over 250% profit.

I know Karma has a capacity of 670 people... so if you say that CP's or halo have the same, and if only 25% of them get one vodka/coke, you're looking at 20 bottles of vodka, and ~165 bottles of coke, and a profit of almost €1500. I know this model ignores the array of variables that come into it, but either way...they're making more than enough profit over 4 and a half hours (open 10.30, close ~2)

Tbh, they don't need to increase anything.

Maths is your strong point?

PomBear

PomBear wrote: »

I Hope to Hell both sell the propertys because Halo's dull as hell
Haven't enjoyed CPs since I was in first year
Both fulls of G4s
Ridiculously overpriced
****e music in both and a pure Random playlist in Halo... See more
Halos too relaxed
I could go on.....


imagine how many people lost their jobs because that **** wanted to stay richer than he is, wanker, the greed of some people amazes me sometimes.

Will I hope Halo doesn't close as I like it and its the only club me and my friends go to in Galway.

I have heard that cp's will be reopening very soon and will take over from Halo as the older crowd club with and over 23's policy. I hope this is true as I really like the sound of that.

We would all (and most people do in one way or another, cash in hand, buying in the US etc) avoid paying as much tax as possible so I certainly will not be getting too upset with the owners, they took a chance and got caught.

Also you are complaining about people losing jobs yet you want to see two clubs closed? That makes very little sense.

joeKel73

TouchingVirus wrote: »

Very true, fa friend told me it's cheaper for somebody to buy a large bottle of Huzzar/Smirnoff/other vodka brand from Tesco than it is for his pub to buy it from a wholesaler. Gotta say I was a bit shocked...

That's a ridiculous claim. Sure if it was cheaper in Tesco than the wholesaler why wouldn't CPs just buy in Tesco!

mink_man

Xiney wrote: »

Pubs are a notoriously easy mark for the revenue.

They do lots of business, and cash business at that. There's a lot of room for cooking the books - which many of them invariably do.

The part that is most interesting to me is that they were done for non-payment of PAYE and PRSI. This means that they were either a) screwing people out of their stamps or b) employing people under the table (who may or may not have had the legal right to work in this country, or who may have been claiming on the side)

When we've got so many people unemployed around the city, county and country, the fact that they'd mess about with the people they do employ is really just scumbaggery.

how does the tax people find out that they dont pay prsi and paye???

civis_liberalis

mink_man wrote: »

how does the tax people find out that they dont pay prsi and paye???

I imagine that in such a situation that it's likely the revenue would have made a rough guess as to how many people were employed there and saw a rather large discrepancy between that and how many they claimed to employ on the books.

I worked in a nightclub once. I don't think anyone there ever had their PAYE or PRSI paid. That was years ago and the current leaseholder is extremely unlikely to have changed the practice.

Busy nightclub, bar / function room business and nobody paying tax...:rolleyes: I was only a teenager at the time. Not even 18 either, but I would be called out as a liar if I told you all how little I was paid.

Anyway, CP's...

KevinVonSpiel

foto joe wrote: »

That's a ridiculous claim. Sure if it was cheaper in Tesco than the wholesaler why wouldn't CPs just buy in Tesco!

I know of some restaurant/bars who are now buying drinks/food in Aldi/Lidl/Tesco as the prices are so much cheaper than the wholesaler that it outweighs any advantage of being billed versus paying cash.

kraggy

foto joe wrote: »

That's a ridiculous claim. Sure if it was cheaper in Tesco than the wholesaler why wouldn't CPs just buy in Tesco!

They're not allowed to. If a pub runs out of vodka, they can't just run down to the off-license and buy a bottle. It's against the law. They have to buy it off whole-salers at a different price.

brianthebard

kraggy wrote: »

They're not allowed to. If a pub runs out of vodka, they can't just run down to the off-license and buy a bottle. It's against the law. They have to buy it off whole-salers at a different price.

They have to pay prsi and paye too though.... I'm not saying every pubs doing it but you can be sure that a good few are picking up stuff in the supermarket, if you check out the booze forum under the food section you'll sometimes see people posting about pubs selling bottles with the not for individual resale label on it that you get from bottles in boxes.

Xiney

mink_man wrote: »

how does the tax people find out that they dont pay prsi and paye???

When people go in to claim for JSB because they've been let go and can't find another job, and the social tell them they have no record of them working is one way.

mox54

revenues computer system is pretty sophisticated and they are only beginning to realise or cop on to how good it is if interrogated properly so they can find out just about anything if you have a pps.....scary!:eek:

PomBear

Juelz Fast Liposuction wrote: »

Will I hope Halo doesn't close as I like it and its the only club me and my friends go to in Galway.

I have heard that cp's will be reopening very soon and will take over from Halo as the older crowd club with and over 23's policy. I hope this is true as I really like the sound of that.

We would all (and most people do in one way or another, cash in hand, buying in the US etc) avoid paying as much tax as possible so I certainly will not be getting too upset with the owners, they took a chance and got caught.

Also you are complaining about people losing jobs yet you want to see two clubs closed? That makes very little sense.

We do pay as little as tax as possible, but we don't tax evade like this guy, when people are losing their jobs all over the country, getting their dole cut and possible minimum wage cut. They took a chance to make a few more milion that they don't need at the expense of more so many many more making alot less money.

I'm not saying I want it closed, I said I want it sold and hopefully new managerial policy, re-read the post.