Vol. 545 No. 2
31 Mr. Quinn asked the Minister for Finance the number of criminal cases taken for tax offences in each of the past five years; the number of cases in which convictions were imposed; the number of cases in which sentences of periods of imprisonment were imposed; and if he will make a statement on the matter. [29964/01]
I am advised by the Revenue Commissioners that the details about criminal cases, convictions and prison sentences for serious tax evasion are as follows. A total of 17 cases have been completed before the courts since 1996, with 16 convictions obtained. Custodial sentences were imposed in eight cases, four of which were suspended. One conviction is under appeal and three individuals are serving sentences.
In 1996, one case was completed, a conviction obtained but no prison sentence was imposed. In 1997, two cases were completed, two convictions obtained and one prison sentence was imposed of six months suspended. In 1998, five cases were completed, five convictions obtained and one prison sentence was imposed of two years suspended. In 1999, two cases were completed, one conviction was obtained with no prison sentence imposed. In 2000, three cases were completed, three convictions were obtained and two prison sentences were imposed, one case of two years currently being served and one case of one year suspended. In 2001, four cases have been completed, four convictions obtained and four prison sentences were imposed, one case of six months, which is being appealed, one case of 12 months currently being served, one case of three months currently being served and one case of one year suspended.
The Deputy will be aware of the very high level of evidence and proof required to sustain a criminal prosecution and that prosecutions can be taken only where such evidence is available. Sentencing is a matter for the courts taking all aspects of a case into account. In the five years to 1995, only one such prosecution for serious tax evasion had been taken.
The Revenue Commissioners have informed me they are satisfied with the progress being made by Revenue under their more active criminal prosecutions programme for serious tax evasion. Their proposal to set up a specialised prosecution division will further enhance progress in this area. The Deputy should not lose sight of the fact that, in addition to the above cases of serious tax evasion, Revenue obtains in excess of 1,000 convictions each year for failure to file tax returns.
The Minister will be aware that recent Finance Acts have changed the legislation to give additional powers to the Revenue, for example, in relation to disclosure of bank accounts. Would he not agree in that context in particular that it is surprising the number of pros ecutions and the number of successful prosecutions taken by Revenue have not increased in any significant degree in the past year or two?
Will the Minister reaffirm the stated determination of the Revenue Commissioners to prosecute those who did not take advantage of the so-called voluntary disclosure scheme which terminated on 19 November last?
It was 15 November.
Of the details of prosecutions I have given, nearly all have been successful. In a total of 17 cases before the courts in 1996, 16 convictions were obtained. Therefore, the level of successful prosecution is very high. The Deputy, and other Members, are wondering why there are not more prosecutions.
Particularly given the changes in the law.
The big change in the law was introduced in the Finance Act, 1999. The Deputy will be aware that to get a successful criminal prosecution requires a very elaborate and detailed process. The Deputy was a practising solicitor and is aware that to get a successful prosecution in a criminal case is far different from other cases and the taxpayers must have their rights protected. It is a long drawn out, tedious process. The Revenue Commissioners is setting up a specialised prosecution division which should further enhance progress in this area.
There is a separate set of questions tabled on voluntary disclosures. Already the Revenue Commissioners are making their case to the court and that matter will be progressed. However, it will be a long drawn out process as the same levels of proof will be required.
Does the Minister agree that his reply is a message to tax evaders that they need not worry too much about prosecution? That is the reality, though it is not the intention of the Oireachtas or the Minister. Does the Minister agree we must further address this issue? There were 50,000 bogus non-resident accounts while there have been 16 prosecutions over the past five years. We must do something in terms of prosecutions. We do not want to put people in jail for the sake of it, but we want to send out a message to tax evaders that there is no place for tax evasion in society.
I certainly bow to the Deputy's absolute knowledge in this regard. He has done significant work in recent years in this area. Proportionately the number of prosecutions here for serious tax evasion is in line with the number taken by the Inland Revenue in the UK. In my previous reply I pointed out the difficulties in having a successful criminal prosecution. I am certain the number of prosecutions will increase in coming years. While nobody can state the level of tax evasion at any one time, I am certain that as a result of activities in recent years, better compliance by taxpayers and more rigorous investigations and standards on the part of the Revenue Commissioners, the level of tax evasion is much lower now than it was a number of years ago.
