Vol. 492 No. 2
71 Mr. Rabbitte asked the Minister for Finance if he has received the report from the National Irish Bank of its internal investigation into the sale of its CMI investment bonds; the progress, if any, of the review of the adequacy of legislation available to the Revenue Commissioners to allow them combat tax evasion, particularly arising from the use of overseas accounts; and if he will make a statement on the matter. [13575/98]
I have not received the report referred to. I am advised by the Revenue Commissioners, however, that they have been provided with a copy of the summary audit investigation report of National Australia Bank into the clerical medical insurance product sold by National Irish Bank. I am also advised that certain aspects of this report are the subject of ongoing discussion between Revenue and NIB representatives and I cannot comment further on this aspect of the issue.
As regards the adequacy of existing legislation to combat tax evasion, the Deputy will be aware that Revenue is participating with the Department of Finance in a review which I initiated of the powers available to them. This review is a wide-ranging one and includes an examination and evaluation of the powers available in other countries.
The whole area of offshore accounts is a difficult one for many countries and the issues are the subject of ongoing discussions in the EU and OECD. The review is progressing satisfactorily. The international comparison will be completed shortly. Revenue has recently made a number of proposals to my Department for further consideration as part of the joint review.
The Deputy will also be aware that the Moriarty tribunal is required by its terms of reference to make whatever recommendations it considers necessary or expedient "for the protection of the State's tax base from fraud or evasion in the establishment and maintenance of offshore accounts, and to recommend whether any changes in the tax laws should be made to achieve this end".
I propose to await the tribunal's recommendations together with the report of the Revenue and Department of Finance review rather than proceed by way of piecemeal changes. Any proposals for new powers would need to be carefully gone into to ensure that they would be effective; could not be easily circumvented; would not needlessly disrupt the affairs of law abiding taxpayers; and would be proportionate in their effect on the financial sector when measured against the problem to be tackled.
There should be no doubt about the Government's determination to combat tax evasion and avoidance. I will not hesitate to take further action as the need arises whether as regards increasing the powers of the Revenue Commissioners or implementing other measures that are likely to be effective.
