Consultants KPMG, in a draft report seen by The Irish Times, have also warned Goal that it needed to consider making a qualifying disclosure to the Revenue Commissioners in relation to all matters giving rise to a tax liability.
The disclosure would need to address all liabilities to tax and interest, not just those specific to the three employees mentioned in the report, Goal has been advised.
“A full PAYE/PRSI review would need to be carried out to identify any areas of non-compliance. In addition, the disclosure would need to cover liabilities under other tax heads that arise due to deliberate default,” the report states.
One internal source told The Irish Times Goal’s tax exposure could be as high as €500,000 but this was denied by a senior member of management.
The exposure relates to PAYE due in relation to some senior managers employed on UK contracts after 2006, when Irish law changed.
The matter is the subject of a complaint to Revenue made by a member of staff.
The agency has been convulsed by a dispute between board members and founder John O’Shea, who last month went to the High Court to prevent the board removing him as chief executive.
After three weeks of talks, a settlement was agreed under which Mr O’Shea will step down at the end of this month.
The Irish Times asked Goal a series of detailed questions about the matters raised in the report and received the following response:
“The board of Goal takes all governance issues extremely seriously. It is Goal’s practice and policy that Goal is tax compliant, and the board is fully satisfied that the organisation is tax compliant.”
The agency said it had recently retained KPMG to provide professional advice on tax, treasury and contracts of employment, given the international scope of its work.
Its accounts were independently audited each year, while donors such as the UN and national government also regularly audited its accounts, according to the statement.
The draft report examines the charity’s tax arrangements applying to three members of staff: acting chief operating officer Jonathan Edgar, internal compliance officer Jerry Cole and media officer David Adams. All three were employed by Goal UK but in recent times have been working most of the time in the Republic.
The report was commissioned by the agency after senior management raised concerns about tax compliance at the charity.
Mr Edgar and Mr Cole were among a number of senior managers who signed a letter saying they could no longer work for Mr O’Shea.
Mr Edgar and Mr O’Shea declined to comment yesterday while Mr Cole, who is in Africa, could not be contacted. KPMG also declined to comment.
Mr Adams, who lives in Belfast and is an Irish Times columnist, said he always believed he was tax compliant.
Since the report was finalised, his employment status had been changed and he was now employed by Goal in the Republic. He said he was fully tax compliant.
Mr Edgar and Mr Cole are still in discussions about restructuring their employment contracts in light of the advice provided by KPMG.
Mr Edgar is due to serve as acting chief executive following Mr O’Shea’s departure after 35 years at the agency, pending the appointment of a permanent successor.