Dáil Éireann debate -
Thursday, 17 May 2001

Vol. 536 No. 4

Written Answers. - Tax Offences.

Thomas P. Broughan

Question:

49 Mr. Broughan asked the Minister for Finance the number of criminal cases taken for tax offences in respect of each of the past five years; the number of cases in which convictions were secured; the number of cases in which sentences of periods of imprisonment were imposed; and if he will make a statement on the matter. [14221/01]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that, up to 1996, cases involving serious tax offences, were referred to the Garda Bureau of Fraud Investigation to investigate and report to the Director of Public Prosecutions with a view to prosecution. Since 1996, Revenue, with the agreement and the assistance of the DPP, have been using a team of its own inspectors to investigate and prepare a file for the DPP in suitable cases with a view to prosecution.

The number of Revenue cases completed in the courts in the past five years, and in 2001 to date, is:

No. of criminal tax offence Cases concluded in the courts: Results

1996	1	1 case: fine
1997	2	1 case: six months imprisonment (suspended)1 case: fine
1998	5	1 case: two years imprisonment (suspended)4 cases: fines
1999	2	1 case: fine – 1 case: acquitted
2000	3	1 case: two years imprisonment (now in prison)1 case: 12 months imprisonment (suspended)1 case: fine
2001 to date	1*	1 case: 12 months imprisonment (now in prison)

*In another case currently before the courts the defendant has not made an appearance and a bench warrant has been issued.

As at 1 May 2001, there were three cases before the courts with three other cases awaiting the issue of summons. A report has been prepared for the DPP in four other cases and a further 25 are under investigation with a view to preparing a file for submission to the DPP.

The investigation of fraud with a view to prosecution is a slow and painstaking process, often relying on a complex paper trail of evidence to assist in establishing the guilt of the accused. The requirement to prove the guilt of the accused "beyond reasonable doubt" places a very heavy onus on the prosecution.

In addition to the serious criminal cases above, Revenue also have an ongoing programme of bringing prosecutions for failure to file income and corporation tax returns.

The figures for convictions in respect of these prosecutions for the last five years are:

	Income Tax	Corporation Tax
1996	319	43
1997	229	82
1998	659	198
1999	1,139	84
2000	918	36

Last year, the Revenue organisation review, which was produced by top level management in Revenue, identified the need to establish a new Revenue prosecution division to allow the expertise and experience in Revenue to be harnessed to greatest effect in processing prosecutions. The proposal was endorsed in the review undertaken by the Department of Finance steering group, which was set up as a result of a recommendation of the Committee of Public Accounts Sub-Committee on Certain Revenue Matters, and has been identified by the Revenue Commissioners as a matter requiring priority.

A project team to implement the proposals will be set up shortly and it is expected that the new division will be established by the end of this year.

Question No. 50 answered with Question No. 21.