Dáil Éireann debate -
Tuesday, 27 May 2003

Vol. 567 No. 5

Written Answers. - Non-Resident Accounts.

Phil Hogan

Question:

206 Mr. Hogan asked the Minister for Finance if his attention has been drawn to media reports concerning the operations of an offshore business by a bank (details supplied) in Jersey and the complaints from customers of the bank regarding the manner in which the bank arranged for or facilitated the deposit of sums from Irish residents in Jersey; the steps he has taken to ensure that the bank was not involved in or facilitating breaches of relevant Irish legislation; the steps he has taken to investigate the matter; and if he will make a statement on the matter. [14256/03]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that they are aware that Irish resident taxpayers have used offshore banking facilities in Jersey in circumstances which may have resulted in tax being evaded. I am further advised that the overseas assets group in their office is in the early stages of an inquiry in respect of the matter. This inquiry will involve establishing if there are tax liabilities and taking action to recover the tax together with interest and penalties. The inquiry by the Revenue Commissioners will also involve establishing if there were breaches of tax legislation. In both instances, the question of referral of cases to the DPP will be considered if the circumstances and the evidence available so warrants. It is too early to predict an outcome to this inquiry.

The Revenue Commissioners have no information with regard to customer complaints and it would not be appropriate for me to comment on matters which appear to be between the bank and its customers. All banks have certain reporting obligations to Revenue and compliance with these obligations is continuously reviewed by the Revenue Commissioners.

Phil Hogan

Question:

207 Mr. Hogan asked the Minister for Finance if his attention has been drawn to media reports that a bank (details supplied) has given certain customers of its Jersey offshore business advance notice that they may face prosecution by the Revenue Commissioners in relation to deposits held by Irish residents offshore; if the giving of such notice by the bank to people who could be liable to prosecution was lawful or constituted an interference with the investigation and prosecution powers of the Revenue Commissioners; and if he will make a statement on the matter. [14257/03]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that they have published a code of practice for auditors which outlines the approach which taxpayers may take in circumstances where they want to make voluntary disclosures of tax evasion. This is open to all taxpayers who may have evaded tax. If taxpayers meet the conditions laid down in the code, Revenue will not initiate a prosecution, but interest and penalties, which may be mitigated in accordance with the code, will of course be applied.

The opportunity to make a voluntary disclosure does not exist where Revenue have already commenced an investigation into the affairs of the particular taxpayer. Since the code is a published docu ment, available to the public at large, the banks have not prejudiced Revenue actions by informing their customers of its contents and Revenue were aware they were so informing them.