I am advised by the Revenue Commissioners that their Ansbacher review team has recently concluded a settlement with Ansbacher (Cayman) Limited, a Cayman Islands based bank, for €7.5 million. The settlement involved was reached after detailed exchanges on the various tax issues arising followed by lengthy negotiations between Revenue and the bank and its advisors.
The grounds of the Revenue claim were that the company had an established place of business in the State and carried on business in the State through a branch or agency from the early 1970s and that the bank's liabilities included tax on profits of the Irish branch and on certain yearly interest payments. The bank held an opposing view on this and contended that it did not carry on a business in Ireland through a branch or agency and that it did not have Irish tax liabilities. The settlement was reached following detailed discussions with the bank on the various tax issues and against a background of unique circumstances and potentially lengthy and protracted litigation. The amount of the settlement, €7.5 million, is a composite amount in full and final settlement of the bank's liabilities.
The settlement with Ansbacher (Cayman) Limited brings the tax collected, so far from the investigation into the Ansbacher and related accounts to more than €38 million. The investigation is continuing and Revenue have successfully obtained five High Court orders against financial institutions and third parties for books, records and other documentation which are relevant to liabilities of Ansbacher account holders. Investigations are time-consuming and complex and it is not possible to place an estimate on the amounts of further tax to be recovered from the enquiries.
Revenue have informed me that extensive use is being made of its legislative powers to seek books, records, documents and information in the cases being investigated and that the enquiries and investigations are likely to continue for some time to come.
