Dáil Éireann Debate, Tuesday - 1 June 2004
139 Mr. Deasy asked the Minister for Finance if the Revenue Commissioners advised financial institutions to notify the holders of bogus non-resident accounts in writing prior to the November 2001 amnesty in the same manner as they did to holders of off shore accounts. [16202/04]
View answerIn relation to the matter of bogus non-resident accounts, the Revenue Commissioners conducted on site look-back audits on 37 financial institutions during 1999 and 2000 and reported on the outcomes to the Committee of Public Accounts. In the course of reporting on the action taken in relation to the financial institutions, Revenue also reported, in particular during the course of the hearing of 30 November 2000, that follow-up action would be taken in respect of bogus non-resident holders who had evaded tax. In May 2001, a statement of practice, SP-Gen 1/01, was issued and this set out the basis on which Revenue proposed to deal with taxpayers who held bogus non-resident accounts. It outlined a voluntary disclosure incentive scheme for taxpayers who held bogus non-resident deposit accounts and who wished to disclose and pay all their outstanding tax liabilities by 15 November 2001. In the period between May 2001 and 15 November 2001, this scheme was extensively publicised and it was made very clear that after November 2001, Revenue would be seeking High Court orders to identify all of those who did not avail of the incentive. Many taxpayers took the opportunity that was offered and payments of €227 million were made under the disclosure scheme.
I understand that enquiry work commenced on 16 November 2001 to identify taxpayers who chose not to avail of the 15 November 2001 incentive scheme. Eighteen applications for High Court orders under section 908, Taxes Consolidation Act 1997, TCA, were applied for and have been granted. These High Court orders required the financial institutions on which they are made to supply names, addresses and other relevant information concerning the identities of account holders who held non-resident deposit accounts. As the relevant information was received from the financial institutions, enquiry letters were issued by Revenue to the taxpayers concerned. The enquiry letters asked the taxpayers to whom they were addressed to disclose and pay all their outstanding tax liabilities within 60 days of the date of issue. Since 15 November 2001, payments of around €290 million have been made to Revenue by taxpayers who had held undeclared funds in bogus non-resident deposit accounts and did not come forward before then.
In respect of the current investigation into offshore accounts, I understand the Revenue Commissioners advised the financial institutions that they would commence an investigation from a specified date. After the specified date the account holders of that financial institution would no longer be able to make a qualifying disclosure to Revenue and benefit from reduced penalties, non-publication and non-prosecution. The financial institutions wrote to their account holders advising them of the forthcoming investigation and of the benefits of making a qualifying disclosure.
140 Mr. Deasy asked the Minister for Finance if persons who are unable to pay the penalties resulting from the non-disclosure of bogus non-resident accounts will have their names published; and if this will result in the Revenue placing a lean on the person’s dwelling house. [16203/04]
View answerAs the Deputy is aware the tax code provides for the imposition of penalties where taxpayers have fraudulently or negligently failed to disclose their full income, profits or gains. Consequently, taxpayers who held undeclared taxable funds in bogus non-resident accounts, did not make a voluntary disclosure by 15 November 2001 and subsequently agree or have already agreed settlements for amounts in excess of €12,700 will have their names published in accordance with section 1086 of the Taxes Consolidation Act 1997.
There are a number of remedies available to the Revenue Commissioners to enforce payment in the case of taxpayers who are unwilling to pay their full liabilities. One remedy, which is infrequently used, is that of placing a lien on a person's dwelling house. In circumstances in which a taxpayer has a genuine inability to meet the full liability, the Revenue Commissioners suggest that he or she should contact the local Revenue district to discuss the matter.
