Dáil Éireann debate -
Tuesday, 19 Feb 2002

Vol. 548 No. 5

Written Answers. - Offshore Accounts.

Austin Deasy

Question:

82 Mr. Deasy asked the Minister for Finance if individuals who have had illegally held offshore accounts, including Ansbacher accounts, have voluntarily declared these accounts; if so, the amounts of unpaid taxes, individually and collectively, which have been repaid to the Exchequer; the amount of tax, including penalties, which is outstanding to the State from such accounts; and if he will make a statement on the matter. [5601/02]

Minister for Finance (Mr. McCreevy):

I am advised by the Revenue Commissioners that the investigation of offshore funds and deposits, which may not have been disclosed for tax purposes, including Ansbacher accounts, is an integral part of Revenue's operations.

A relatively small number of cases involving offshore funds or deposits would have made voluntary declarations to Revenue over the years. The liabilities in such cases would normally involve items in addition to the offshore funds, for example, capital gains, undeclared rents and suppressed drawings of funds from a business. The ingredients of settlements vary from case to case and statistics on the ingredients of settlements are not retained. In addition, payments made in confidence under the terms of the 1993 amnesty may have covered funds in offshore accounts. In the circumstances it is not possible to provide the overall figures requested.

By far the predominant number of cases under inquiry and investigation derive from the extensive use by Revenue of legislative powers, that is other than by way of voluntary declaration. In this connection Revenue has made successful applications to the High Court for the production by financial institutions of books, records and other documentation which are relevant to liabilities of Ansbacher account holders. This work on the investigation of the Ansbacher account holders is complex and time consuming and is likely to continue for some time to come. At present it is not possible to indicate the total amount of tax, interest and penalties that may be involved in the investigation.

The Ansbacher investigation has essentially two elements. There are cases involving Ansbacher type arrangements and there are other cases involving offshore funds and deposits.

Revenue has indicated that it is inquiring into 197 Ansbacher type cases. These consist of 121 cases named by the authorised officer and 76 similar cases discovered by Revenue. A total of 168 cases are under active investigation. Inquiries have not yet commenced in the remaining 29 because of insufficient identity information, apparent non-residency or the 1993 amnesty being claimed. A large number of connected entities and trusts is also being investigated.

To date a total of €16.67 million or £13.13 million has been received, mostly by way of payments on account, in respect of 49 cases. This is made up of:

Ansbacher cases on Authorised Officer's list	24 Cases	€6.11 million (£4.81 million)
Additional Ansbacher cases identified by Revenue list	16 Cases	€4.05 million (£3.19 million)
Other cases involving offshore funds or deposits	9 Cases	€6.51 million (£5.13 million)
Total	49 Cases	€16.67 million (£13.13 million)

The investigation into three cases has been concluded: one Ansbacher case had no additional liability arising from the investigation; and two of the non-Ansbacher or other cases made voluntary disclosures and were settled on payments of £197,000 or €250,000 and £220,000 or €280,000, respectively.