Dáil Éireann Debate, Wednesday - 16 June 2004
131 Mr. Deasy asked the Minister for Finance if, in view of the recent scandals involving a bank (details supplied) and the concern being expressed regarding the role of the Revenue Commissioners, he will re-examine the roles of both institutions regarding the prosecution of holders of bogus non-resident accounts; and if he will make a statement on the matter. [18127/04]
View answerThe Revenue Commissioners conducted on-site DIRT look-back audits on 37 financial institutions during 1999 and 2000. The focus of these audits was the DIRT position of the financial institutions concerned. In the course of this audit programme, many bogus non-resident deposit accounts that belonged to taxpayers were identified. At the conclusion of this audit programme, financial institutions made payments totalling €220 million to the Revenue Commissioners. These payments represented the DIRT, which should have been deducted together with the related interest and penalties. The Revenue Commissioners made a report on the matter to the Committee of Public Accounts which commented on the outcome of these audits in the final report on the DIRT inquiry, finalised on 3 April 2001. The Revenue Commissioners have informed me that no evidence was seen in the course of the DIRT look-back audit programme that would support an investigation of an official of a financial institution with a view to prosecution.
The Revenue Commissioners issued statement of practice SP-Gen 1/01 in May 2001, which set out 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. This approach to the bogus non-resident account problem was extensively publicised at the time. Many taxpayers took the opportunity that was offered and payments of €227 million were made under the disclosure scheme.
Inquiry work commenced on 16 November 2001 to identify taxpayers who choose not to avail of the voluntary disclosure scheme. Eighteen applications for High Court orders under section 908, TCA 1997 were applied for and have been granted. High Court orders made on financial institutions required them to supply names, addresses and other relevant information concerning the identities of account holders who held non-resident deposit accounts. This High Court order information is the principal basis for identifying holders of bogus non-resident accounts.
Inquiry letters have been issued to taxpayers who have been identified in the section 908 High Court order information. This inquiry letter asks the taxpayer to whom it is addressed to disclose and pay all his or her outstanding tax liabilities within 60 days of the date of issue of the inquiry letter. To date since 15 November 2001 payments of €300 million have been made to the Revenue Commissioners by taxpayers who held bogus non-resident deposit accounts but who choose not to avail of the voluntary disclosure scheme. The Revenue Commissioners have not sought to initiate an investigation with a view to prosecution where the taxpayers concerned have fully co-operated. However, the Revenue Commissioners have indicated that those who have not done so will face the prospect of a criminal investigation.
