The 1988 amnesty provided for the waiver of interest and penalties but outstanding tax had to be paid in full. There was, accordingly, no loss of tax as a result of the 1988 amnesty. While the waiver of interest and penalties does imply a loss to the Exchequer, I am informed by the Revenue Commissioners that an estimate is not available and that in fact it is not possible to quantify the real loss because interest and penalties would have had to be pursued on a case by case basis and the amounts involved would depend on the age of the debt and the other circumstances applying. However, I am advised by Revenue that the overall amount foregone would not have been significant and that any such loss in interest and penalties was more than outweighed by the significant payments of outstanding arrears under the amnesty – some €620 million, £490 million – payment of which freed up Revenue staff to pursue outstanding liabilities in other cases.
The 1993 amnesty provided for two separate amnesty schemes: an incentive amnesty under which, subject to compliance with specified conditions, certain liabilities to income tax and capital gains tax, together with interest and penalties, could be discharged by payment of 15% of the underlying income or gains on a confidential basis to the chief special collector; and a general amnesty under which other tax arrears had to be paid in full with remission only for interest and penalties. Some €96.5 million, £76 million, was paid under the 1993 general amnesty. In so far as the foregoing of interest and penalties is concerned, the situation is similar to the 1988 amnesty.
In relation to the 1993 incentive amnesty, I am advised that, as at end 2001, Revenue had discharged €56.06 million, £44.15 million, that was on its records in relation to some 8,204 taxpayers who availed of the incentive amnesty and who produced the relevant forms of evidence to Revenue. Revenue estimates that, taking account of payments that would have been made to the chief special collector in these cases, the tax loss in these cases would be some €38 million, £30 million. Possible interest and penalties foregone would add a small amount to this figure.