Vol. 438 No. 1
60 Mr. Durkan asked the Minister for Finance whether he intends to introduce any measures to discourage investment in off-shore enterprises which, if allowed unchecked, may necessitate a further tax amnesty; and if he will make a statement on the matter.
As the Deputy will be aware, on foot of a 1988 EC Directive Ireland gradually removed exchange controls from 1988 onwards and on 31 December 1992 abolished the few controls then remaining. There is no question of our reintroducing exchange controls. Apart from any other consideration, the Treaty on European Union prohibits their use except in very exceptional circumstances.
As a general rule, Irish resident taxpayers are liable to Irish tax in respect of income and capital gains no matter where they arise. Specific measures have been enacted by the Oireachtas to counter attempts to evade or avoid Irish tax through the use of off-shore companies and trusts. In addition, the Oireachtas has enacted a general anti-avoidance provision — section 86 of the Finance Act, 1989. I should mention that the Revenue Commissioners have recently been operating a more intensive programme involving the issue of notices seeking information regarding the setting-up of off-shore companies and trusts.
As I have stated on a number of occasions, the 1993 tax amnesty was the final opportunity for taxpayers to put their affairs in order before the introduction of the stringent new penalties, including prison sentences, which accompanied the amnesty.
I am satisfied that the Revenue Commissioners extended powers will greatly improve their ability to combat future attempts at avoidance and evasion.
