Dáil Éireann debate -
Tuesday, 25 Oct 1994

Vol. 446 No. 3

Written Answers. - Tax Evasion.

Eric J. Byrne

Question:

117 Mr. E. Byrne asked the Minister for Finance in respect of 1993 and 1994 the estimated level of tax evasion: the total number of prosecutions initiated involving evasion of PAYE income tax, self assessed income tax, PRSI, Corporation Tax, Capital Gains Tax and VAT; the number of cases in respect of which convictions were obtained; and the total amounts in respect of which prosecutions were initiated. [1955/94]

Minister for Finance (Mr. B. Ahern)

It is not possible to give a reliable estimate of the level of tax evasion. Its very nature makes it extremely difficult to estimate its extent.

The Revenue Commissioners operate a wide range of programmes to detect evasion and increased resources are being devoted to this task. Some 16,100 persons were detected by the Revenue Commissioners in the last five years as either not on record for tax purposes or having undisclosed sources of income. In the same period revenue's audit and investigation programmes produced tax settlements valued at almost £413 million.

In the majority of cases the most effective way of dealing with evasion is by way of settlement. The fact that the settlements are published and include interest and an amount to cover penalties is an effective deterrent to evasion. In line with the practice in most other jurisdictions only a limited number of cases are selected for prosecution in any one year.

Since 1992, 13 cases were referred by the Revenue Commissioners to the Garda fraud squad for investigation with a view to obtaining the evidence needed for prosecution and the preparation of a report for the Director of Public Prosecutions with a view to prosecution. The Director of Public Prosecutions has decided not to proceed in two of these cases. The remaining cases are being pursued by the Garda fraud squad.

Revenue have an active policy of prosecutions for tax offences outside of the tax evasion area as can be seen from the 448 cases published in the 1993 Revenue annual report in respect of which a fine or penalty was imposed.