Vol. 544 No. 4
185 Mr. Rabbitte asked the Minister for Finance the extent to which the statement of practice by the Revenue Commissioners in respect of bogus non-resident accounts has been availed of by account holders; and if he will make a statement on the matter. [29090/01]
As the Deputy will know, the Revenue Commissioners announced on Monday this week the provisional figures of the outcome of the voluntary disclosure scheme for holders of bogus non-resident accounts. The provisional figures indicated that a total of £176 million – 223.4 million – was paid by 3,500 account holders in respect of an estimated 6,500 accounts.
In its statement of practice issued on 2 May 2001, Revenue outlined its intended approach to this issue which involved two distinct stages, the first of which ran to 15 November during which depositors who had bogus accounts could make voluntary disclosure on favourable terms, while during the second, which came into action immediately after 15 November, Revenue would use its new powers to identify account holders who had not availed of the voluntary disclosure route and would pursue full tax, interest and penalties with prosecution in appropriate cases.
I am advised by the Revenue Commissioners that they are making applications to the High Court using their new powers to identify those people who held bogus non-resident accounts and who did not avail of the voluntary disclosure arrangements. In the meantime, Revenue already has information on the identities of a substantial number of account holders obtained in the course of the look back audits of financial institutions. These lists will now be compared with the lists of people who have availed of the voluntary scheme, so as to identify cases in which individual investigations can commence immediately. Defaulters, who will be exposed as a result of the investigations now getting under way, will not be able to avail of the cap on interest and penalties. Their names will be published and appropriate cases will be investigated with a view to prosecution.
I understand that Revenue's investigations will extend over a number of years and that it will be prioritising cases based on the size of the accounts. I am also advised that it is quite possible that a considerable number of the outstanding cases will have availed of the 1993 amnesty. The Revenue Commissioners will review the position as they proceed and will report on progress in their annual reports. Revenue has indicated it is determined to see this project through as efficiently and effectively as possible.
