Vol. 576 No. 6
7 Ms Burton asked the Minister for Finance if the Revenue Commissioners are holding a series of meetings with chief executives of Irish financial institutions as part of their investigation into tax evasion and offshore accounts; if so, the purpose of these meetings; the number of such meetings held to date; the number planned; and if he will make a statement on the matter. [30246/03]
I am advised that the chairman of the Revenue Commissioners recently initiated a series of high level meetings with certain financial institutions. The purpose of these meetings is to discuss issues concerning possible tax evasion involving the use of offshore accounts in subsidiaries of financial institutions and possible co-operation by the institutions with Revenue inquiries into this matter. To date, meetings have been held with five institutions and more are planned. It is expected that meetings will have taken place with all relevant institutions before the year end.
I thank the Minister for Finance for his reply. Is he aware of statements published recently by the chief executive of Anglo Irish Bank, Mr. Sean FitzPatrick, in which he called on the banking sector to hold meetings with the Revenue Commissioners. He also claimed that banks were slow in admitting to DIRT liability and that it is like letting lawyers negotiate on behalf of the church. Is the Minister confident that all of the tax evaded will be recovered? The Minister is not clear if these meetings between the Revenue Commissioners and the banks are on a one-to-one or collective basis. The Minister mentioned five banks in his reply. How many times did the Revenue Commissioners resort to court orders under the powers they have to access information on these accounts? Given this statement by the chief executive of Anglo Irish Bank, have the Revenue Commissioners received all the information requested from that particular bank? Is the Minister determined that all tax due will be recovered and that these negotiations will not result in some form of trade-off such as an amnesty for some of the banks or accounts involved?
I understand the Revenue Commissioners have to date met with the institutions individually and will meet with the rest of them before the end of the year. Operational matters between the Revenue Commissioners and individual clients are solely a matter for them. I am aware that the Revenue Commissioners are satisfied that the powers available to them are sufficient, particularly those granted to them under the Finance Act 1999.
In three particular incidents with other financial institutions with subsidiary operations, the Revenue Commissioners met with them. Arising from that, the individual institutions wrote to their clients and the matter was dealt with on that basis. The collection of tax revenue proceeds apace.
How much money has been recovered so far? On the last occasion I submitted a parliamentary question, the figure for Bank of Ireland Jersey accounts was €120 million for approximately 250 deposit holders. Will the Minister give the figures for the tax revenue collected so far from these banks, collectively or individually, in the Isle of Man? Have the Revenue Commissioners resorted to their powers to get court orders or are the banks coming forward with voluntary disclosure of information? Is the matter simply still a negotiating game between the Revenue Commissioners and the banks? Will the Minister agree it is important for the banks, where there has been significant offshore tax evasion, to support their customers and look at their own activities in facilitating people to evade tax by depositing money offshore?
There are two distinct areas in this matter. The offshore assets group of the Revenue Commissioners is inquiring into the activities of the subsidiary operations of three Irish financial institutions. To date, the money collected is in excess of €125 million, which is made up of tax interest and penalties from persons holding funds offshore. The Revenue Commissioners have had meetings with five other financial institutions and more are planned before the end of the year. Matters will proceed from there.
As to the other three financial institutions, the offshore assets group has dealt with them on a voluntary basis. I understand there has been no reason to resort to the powers vested in the Revenue Commissioners, as full co-operation has been afforded.
