Vol. 437 No. 2
44 Mr. Yates asked the Minister for Finance the current rules and regulations in relation to the confidentiality or otherwise of accounts in financial institutions in relation to access by the Revenue Commissioners; the current availability of accounts for inspection, both resident and non-resident, by the Revenue Commissioners; and if he will make a statement on the matter.
The Revenue Commissioners have no automatic right of access to the bank accounts of taxpayers. The Tax Acts provide procedures for limited access by the Revenue Commissioners in exceptional circumstances. These procedures have been used on only a small number of cases and require the authorisation of the Board of the Revenue Commissioners before they are activated. The procedures are set out in two sections of the Tax Acts as follows.
Section 18, Finance Act, 1983 provides that where an Inspector of Taxes has reason to believe that an account in a financial institution is being concealed by a person for tax purposes an authorised officer of the Revenue Commissioners may apply to the High Court for an order requiring that institution to furnish him with certain particulars of accounts held by that person and such other information as the court may specify. On being satisfied that an application under this section has merit the High Court may make an order for the furnishing of specified information and may prohibit any dealings in any assets or moneys of the person in the financial institution without the consent of the judge.
Section 13 of the Waiver of Certain Tax, Interest and Penalties Act, 1993 has not yet been used so far. This section applies where a taxpayer has failed to lodge a return or accounts when requested by the Inspector or the Inspector is not satisfied with the return. This section gives authority to an authorised officer who has reasonable grounds to believe that a person maintains an account with a financial institution which has not been disclosed or that there is information in the books of the institution indicating that the taxpayer's return is incorrect to a material extent; to apply to the Appeal Commissioners to determine whether or not she/he is justified in asking the financial institution for: (1) particulars of the accounts maintained in the institution during a period not exceeding ten years, and (2) other information requested by the authorised officer relating to the financial transactions recorded in the books of the financial institution.
The taxpayer and the institution have a right to be represented at the hearing and there is a right of appeal to the High Court.
