Authorised Revenue officers are empowered to make an application to a judge of the High Court seeking an order requiring financial institutions to supply names, addresses and other relevant information concerning account holders who may have held bogus non-resident deposit accounts. Such applications are made under section 908 of the Taxes Consolidation Act 1997, as amended by the Finance Act 1999. I am advised by the Revenue Commissioners that information supplied by the financial institutions under section 908 orders will be the principal basis of identifying bogus non-resident account holders who did not avail of the voluntary disclosure scheme in 2001. This inquiry work commenced on 16 November 2001.
I am advised by the Revenue Commissioners that 17 applications for orders under section 908 have been made and granted. When one includes institutions which have been taken over or amalgamated with other institutions, these orders seek information in respect of accounts in 23 financial institutions. One other application has been made to the High Court in relation to one other deposit taker. Information that is supplied by deposit takers under court orders is becoming available on a phased basis. Work commenced in February 2002 on the initial lists of more than 1,800 account holders identified in the DIRT look-back audits. Very large volumes of information are being reported to Revenue under the High Court orders. Letters issued to the first batch of taxpayers on 11 October 2002. A further issue of inquiry letters was made on the 20 January 2003. This inquiry work relates to 35,000 non-resident accounts that had 70,000 Irish addresses connected with them. As further information is received, more inquiries will be made on a phased basis.
While it is clear that Revenue is facing a long programme of investigations over a number of years, the commissioners have informed me that they are satisfied that significant progress is being made in this new phase of the investigations. Since 15 November 2001, which was the deadline for the voluntary disclosure scheme, payments of €131 million have been made to Revenue by taxpayers who held bogus non-resident accounts. The commissioners inform me that in recent weeks tax offices have been contacted by many recipients of the 20 January 2003 letters who are indicating their intention to make payments by the deadline of 27 March 2003 and it has been clarified that some others have no further tax liability. The commissioners also inform me that they intend to proceed with enforcement action against those account holders who did not respond to the 11 October 2002 inquiry letter.
