Michael Creed
Question:103 Mr. Creed asked the Minister for Finance if he will outline the number of individuals and companies prosecuted for tax evasion in each of the years between 1987 and 1991; and if he will make a statement on the matter.
Written Answers. - Tax Evasion Prosecutions.
The total number of individuals and companies prosecuted successfully in the courts for tax evasion in the calendar years 1987 to 1991 inclusive is as follows:
|
Individuals |
Companies |
Total |
|
|
1987 |
65 |
10 |
75 |
|
1988 |
106 |
3 |
109 |
|
1989 |
65 |
5 |
70 |
|
1990 |
29 |
5 |
34 |
|
1991 |
76 |
1 |
77 |
These prosecutions relate to failure to make returns or produce accounts in respect of income tax, corporation tax, residential property tax or VAT.
In addition, the Revenue Commissioners reached substantial monetary settlements involving recovery of the evaded tax and mitigated interest and penalties with defaulting taxpayers in those years. Many of these defaulters had their names published in Iris Oifigiúil and the Revenue Commissioners' annual reports for those years. I had been advised by the Revenue Commissioners that this latter approach constituted the most effective sanction against tax evasion in those years.
I referred in my Budget Statement to the Government's concern regarding the instances of tax evasion which have come to public notice in the past year. The Government's approach here is to give the Revenue Commissioners greater anti-evasion powers. Accordingly, I will be bringing forward measures in the Finance Bill to give the Revenue Commissioners greater powers in relation to information regarding taxpayers' affairs. I will also be taking steps to create a more realistic and effective penalty regime.
I have also been informed by the Revenue Commissioners that, as a consequence of the introduction of self-assessment, they are moving to a more pro-active policy in relation to prosecution action. Seventy-seven convictions with monetary penalties were secured for failure to make returns in 1991 and, in 1992 to date, there are already 400 cases awaiting a court hearing. In addition, the Commissioners have recently established liaison with both the Garda Fraud Squad and the Director of Public Prosecutions with a view to bringing forward for prosecution cases involving serious tax fraud.
It is to be hoped that the combination of all these measures will have a major deterrent effect on persons who seek to evade their tax obligations.