The Jiffy Communications Group is in trouble with regulators after it received a $12 million penalty notice from the Communications Authority of Ireland.
The penalty notice came in response to a complaint lodged by the Communication Authority.
Jiffy has been fined by the Communications Commission €500,000 for breaching a section of the Communications Act 2003.
It was also fined €2.5 million for failing to pay income tax on the profits it received in the UK.
The company has appealed the decision.
The Communications Authority’s fine against Jiffys has sparked outrage among members of the Irish Government who argue that the company is a huge employer in Ireland.
It is one of a number of businesses, including the Irish National Lottery and other lottery businesses, to have been targeted by the authority for failing tax reporting.
However, a spokesperson for the Communications Minister, Mary Mitchell O’Connor, has dismissed the criticism and claimed the fine has been levied against an Irish-owned business.
The Communications Commission has also been given a warning for failing a tax return, following the company’s payment of a penalty notice.
A spokesperson for Mr Mitchell O”Connor said: “The Communications Commissioner’s penalty against JIFFY has been imposed in response the Communications Services Commissioner’s determination that the business is a substantial employer and a direct or indirect tax resident.”
The company has said it will appeal the decision to the Irish High Court.
The fine is the latest blow to the struggling Irish lottery operator, whose turnover is estimated at €5.5 billion ($7.7 billion).
