Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - DIRT Liabilities.

Emmet Stagg

Question:

51 Mr. Stagg asked the Minister for Finance the progress made to date by the Revenue Commissioners in regard to the recovery of outstanding DIRT liabilities identified in the report of the DIRT subcommittee of the Committee of Public Accounts in regard to individual account holders; the amount of money recovered so far from individual account holders; the average payment made in each case; the amount of outstanding tax written off; and if he will make a statement on the matter. [9752/01]

Minister for Finance (Mr. McCreevy):

The Deputy will be aware that on 31 October last year the Revenue Commissioners made a report to the Committee of Public Accounts giving details of the total amount of £173 million in DIRT, interest and penalties determined and collected as a result of the look-back DIRT audits of financial institutions.

Revenue have informed me that they are nearing completion of their consideration of the question of the most efficient and effective approach to recovering underlying tax in respect of funds concealed in bogus non-resident accounts. Determining the appropriate approach requires careful consideration to ensure that the process of pursuing the liabilities is effective in recovering amounts due. I am advised by the Revenue Commissioners that they are preparing guidelines and that their position will be finalised after the analysis of the legal and other issues, which is well advanced, has been completed.

The Deputy will appreciate that, in the circumstances, the figures requested by him are not available at this stage. I understand that, in advance of the main investigation by Revenue, there have been 86 disclosures to Revenue of bogus non-resident accounts and that 56 of those disclosures have been accompanied by payments on account, principally by account-holders with large accounts. The payments on account made by these account-holders to date amount to £6.627 million. This represents an average payment of £118,000 in the cases where payment was made.

I am informed that no amount of outstanding tax has been written off in these cases, nor has any consideration been given to writing off underlying tax due by the holders of bogus non-resident accounts. The Revenue Commissioners will be pursuing payment of this tax.