Written Answers. - Tax Evasion.
Ruairí Quinn
Question:
159
Mr. Quinn
asked the
Minister for Finance
the number of prosecutions undertaken or pending on foot of breaches of section 9 of the Waiver of Certain Tax, Interest and Penalties Act, 1993, or the relevant consolidated section; and if he will make a statement on the matter.
[3956/00]
Ruairí Quinn
Question:
160
Mr. Quinn
asked the
Minister for Finance
if, further to parliamentary Question No. 56 of 10 November 1999, he has satisfied himself that only one person has served time in jail for breach of the taxation code since 1997; and if he will make a statement on the matter.
[3957/00]
Ruairí Quinn
Question:
161
Mr. Quinn
asked the
Minister for Finance
if he has satisfied himself with the prosecutions policy of the Revenue Commissioners; when he last met with the Chairman of the Revenue Commissioners to discuss this issue; and if he will make a statement on the matter.
[3958/00]
Ruairí Quinn
Question:
162
Mr. Quinn
asked the
Minister for Finance
the lapse of time between the initiation of a prosecution inquiry by the Revenue Commissioners and the hearing of a case in the courts; and if he will make a statement on the matter.
[3959/00]
Ruairí Quinn
Question:
163
Mr. Quinn
asked the
Minister for Finance
the procedures adopted by the Revenue Commissioners upon the detection of a tax offence as envisaged in section 9 of the Waiver of Certain Tax, Interest and Penalties Act, 1993; and if he will make a statement on the matter.
[3960/00]
Ruairí Quinn
Question:
164
Mr. Quinn
asked the
Minister for Finance
the number of applications in each of the years from 1993 to date by inspectors of the Revenue Commissioners to the Appeals Commissioners using powers given to them under section 5 of the Waiver of Certain Tax, Interest and Penalties Act, 1993; and if he will make a statement on the matter.
[3961/00]
Ruairí Quinn
Question:
165
Mr. Quinn
asked the
Minister for Finance
the number of files referred by the Revenue Commissioners in each of the years since 1993 in respect of possible offences under the taxes Acts generally and the Waiver of Certain Tax, Interest and Penalties Act, 1993, in particular; the average length of time taken by the DPP's office to consider the relevant files; the number of cases in each year in which a decision is taken not to prosecute; the number of these cases which were summary, indictable, triable either way; the number of offences triable either way, dealt with in each way; and if he will make a statement on the matter.
[3962/00]
Ruairí Quinn
Question:
166
Mr. Quinn
asked the
Minister for Finance
if he has satisfied himself that there is a system of prompt and efficient communication between the Revenue and the Director of Public Prosecutions in relation to the prosecution of revenue offences; the special arrangements, if any, in place to deal with these cases; and if he will make a statement on the matter.
[3963/00]
I propose to take Questions Nos. 159 to 166, inclusive, together.
Since the questions with reference nos. 3956/00 to 3963/00 refer to interrelated matters, that is, offences and prosecutions, they are being taken together. As the questions all appear to relate to the issue of serious tax evasion, the information supplied should be read in that context. Revenue initiate large numbers of other prosecutions each year for failure to file tax returns and for customs and excise offences.
The development of a more effective prosecution policy for serious tax evasion is one of the key strategies in Revenue's statement of strategy 1997-1999. The strategy envisaged that, as well as dealing with such evasion through recovery of underpaid tax along with interest and penalties, there would be a policy of more active prosecution in appropriate cases.
I know that the Deputy, in his former capacity as Minister for Finance, played a part in promoting this chance. I too have made clear to Revenue that the prosecution initiative should be developed and built upon. I have discussed the general strategy on a number of occasions with the Chairman of the Revenue Commissioners, including discussion in the recent past and last year I approved the appointment of additional staffing in the investigation and legal areas in Revenue. Further proposals are at present under consideration.
I am advised that under the changed approach initiated in 1996, in order to speed tip the earlier prosecution approach and improve the chances for successful prosecutions, Revenue took over in most tax cases the work previously handled by the Garda Sochána, including the taking of statements and preparing of reports for direct referral to the DPP. The investigation branch in the office of the chief inspector of taxes was restructured for this purpose. A senior officer of the DPP's office has been made available to assist Revenue. Necessary training of staff has taken place and operating manuals have been prepared. A case admissions committee evaluates cases by reference to criteria which are outlined in the Code of Practice for Revenue Auditors published in 1998.
I understand from the Revenue Commissioners that, while they are satisfied with the development of the prosecution policy to date and that it has speeded up the number of cases going before the courts, the procedures are under constant review in consultation with the DPP's office with a view to further improvements. It should be noted that there is a particularly heavy burden of proof for criminal prosecution and this makes it an onerous task.
I understand from the Revenue Commissioners that the replies to the specific queries raised by the Deputy are as follows.
Numbers of prosecutions regarding section 9 of the Waiver of Certain Tax, Interest and Penalties Act, 1993: There are two elements to a possible offence under this section – (i) the knowing and wilful commission of a revenue offence before 5 April 1991 and (ii) the failure to make an amnesty declaration or a correct amnesty declaration.
Where these conditions appear to be present in a case and the requisite evidence to ground a successful prosecution may, be available, the possibility of prosecution under section 9 is investigated. Of the 24 cases at present under examination for possible prosecution ten cases have circumstances which appear to come within section 9. If sufficient evidence can be assembled in a case the matter is referred to the DPP.
Imprisonment for breach of the taxation code: Of the eight convictions since 1997 a suspended prison sentence was imposed in two cases. In the other six cases monetary fines were imposed by the courts. Whether a prison sentence is, or is not, imposed in the circumstances of any given case is a matter wholly for the courts.
Time lapse between investigation and prosecution: In the cases in which investigations were begun by Revenue investigators over the last three years and which have come to trial, the average length of time that has elapsed from the initiation of the investigation to the hearing of the case in court has been approximately 17 months. No such case has been rejected by the DPP, or the courts, due to delay. Revenue investigators are very conscious of the need to complete investigations and prepare a report for the DPP in the shortest possible time so that issues are brought to trial with due expedition.
Procedures in cases involving possible offences under Waiver of Certain Tax, Interest and Penalties Act, 1993: In the published tax prosecution criteria of the Revenue Commissioners, which are the guidelines under which Revenue officers carry out their audit work, offences under the Waiver of Certain Tax Interest and Penalties Act, 1993, are included in the list of the types of tax offences which are most likely to be prosecuted. From the cases submitted to it by audit and compliance districts, the case admissions committee in investigation branch selects the most suitable cases for investigation with a view to prosecution. The strength of available evidence, the degree of culpability, responsibility and experience of the alleged offender and the period of time that has elapsed since the alleged offence was discovered are among the factors to be weighed in deciding on a prosecution.
Applications to Appeal Commissioners: There have been 14 applications to the appeals commissioners under section 5 of the Waiver of Tax Interest and Penalties Act, 1993, as follows:
|
1993
|
Nil
|
|
1994
|
Nil
|
|
1995
|
6
|
|
1996
|
6
|
|
1997
|
2
|
|
1998
|
Nil
|
|
1999
|
Nil
|
Six of these applications were successful, four were refused, three were settled by agreement and one is still open.
Number of files referred to the DPP since 1993: The detailed information sought by the Deputy about files referred to the DPP's office is not readily available. It will be forwarded to the Deputy when it comes to hand.
Communication with the Office of the DPP: As indicated earlier, the Revenue Commissioners have been greatly assisted since 1997 by a senior officer from the DPP's office in developing the prosecution function. This arrangement facilitates prompt and efficient communication with the Office of the DPP and I understand that Revenue is very satisfied in that regard.
