Dáil Éireann Debate, Tuesday - 30 November 2004
228 Mr. Sargent asked the Minister for Finance the reason non-resident bogus account holders have not been prosecuted; the number who have been subject to prosecution; and the progress of the cases being taken. [31069/04]
View answerI am advised by the Revenue Commissioners that there were two phases to their investigation into the holders of bogus non-resident accounts. Phase one consisted of an incentive scheme designed to ensure that the maximum possible number of taxpayers who held such accounts and who had undisclosed tax liabilities came forward voluntarily, made settlements and paid the outstanding amounts as quickly as possible. This approach was consistent with the recommendation by the Committee of Public Accounts in its final report on the DIRT inquiry:
The Revenue Commissioners give consideration to dealing with the assessment and collection of the underlying tax in a pragmatic and effective manner while safeguarding the overall tax revenues of the State.
This phase included a guarantee that those who voluntarily disclosed would not be investigated with a view to prosecution.
Phase two, which is still ongoing, consists of following through those bogus account holders who did not voluntarily disclose. In such cases the tax, interest and penalties are collected and, if they fall within the criteria in section 1086 of the Taxes Consolidation Act 1997, the names of the individuals involved are published in Iris Oifigiúil. Such individuals may also be considered for prosecution.
Revenue's prosecution programme is conducted on the basis of identifying cases of serious evasion regardless of the means used to hide the undisclosed income or gains. This has resulted in bogus non-resident account holders being considered for investigation and where the evidence or likely evidence appeared good enough investigations have been initiated. To date one taxpayer whose evasion involved the holding of a bogus non-resident deposit account, was successfully prosecuted. This individual received a two year suspended sentence. In addition, the Director of Public Prosecutions has directed that proceedings should be taken against another such taxpayer and this case will appear in the courts in due course. It is likely that some further cases will be considered and if sufficient admissible evidence can be assembled they will also be referred to the Director of Public Prosecutions for directions.
To date €557 million in tax, interest and penalties has been recovered by the Revenue Commissioners from bogus account holders. This sum relates to about 12,000 taxpayers. Many of the account holders did not have any additional tax liabilities.
