Vol. 539 No. 2
43 Mr. McDowell asked the Minister for Finance the number of persons who have contacted the Revenue Commissioners wishing to take advantage of the arrangements announced by the Revenue Commissioners on 2 May 2001 for payment of back taxes by bogus non-resident account holders; if settlements have been agreed by the Revenue Commissioners; and if he will make a statement on the matter. [19033/01]
I understand from the Revenue Commissioners that, at this initial phase, their primary emphasis is on ensuring that the relevant arrangements are brought to the attention of tax practitioners and taxpayers affected.
I am advised by Revenue that the dedicated helpline, which was specially set up to answer queries in relation to the statement of practice issued on 2 May 2001, has to date received more than 600 general inquiries, many of which were from tax practitioners. In addition, Revenue has also conducted nationwide seminars on the statement of practice in the course of which tax advisers have had the opportunity to discuss and clarify issues in relation to the operation of the arrangements. National and local advertising is being undertaken. Many account holders may have to gather information to make a full disclosure.
As at 22 June 2001 three account holders with liabilities had already made disclosures on forms BNR1, the required form of disclosure. The total amount paid by the three account holders was £396,044. This total amount was made up of £198,075 tax and £197,969 interest and penalties. The disclosures which have already been made are being acknowledged and, subject to any examination of these disclosures after 15 November when all forms BNR1 have been received, they will be treated as discharging the previously undisclosed liabilities of the account holders concerned.
I am advised by the Revenue Commissioners that a representative selection of the forms BNR1 will be examined. This selection will not be made until all the forms have been received, that is, until after 15 November, so as to ensure that the selection is representative of all disclosures, whether made early or at the last minute. I am further advised that the intention of this examination is to deter and detect any abuse rather than to find fault with best estimates made on a reasonable basis where information is now incomplete.
Revenue has emphasised that the work of auditors and investigators who will be addressing bogus non-resident accounts after 15 November will be primarily focused on those account holders who have not disclosed and paid by that deadline. A much more severe regime will apply in these cases in comparison with voluntary disclosures. Revenue recommends early action in this matter by account holders and their advisers in order to lessen the pressures which would be experienced in the event of a last minute rush before the 15 November deadline.
