Dáil Éireann Debate, Thursday - 26 February 2009
81 Deputy Paul Kehoe asked the Minister for Finance his views on a matter (details supplied) in view of the recent revelations within banking circles and the considerable suspicion surrounding bank practices; and if he will make a statement on the matter. [8192/09]
View answerThe matter raised by the Deputy relates to the issue of Bogus Non-Resident accounts which were used by Irish residents to avoid a liability to DIRT. This tax did not apply to bona fide non-resident accounts and by seeking to simply apply a foreign address to an account it was sought to have these accounts designated as non-resident and thereby avoid the liability to DIRT. However, as the beneficial owners of the accounts were Irish residents DIRT should have been paid on these accounts.
This issue has been examined in some detail by this House, the PAC and the Comptroller & Auditor General. The Revenue Commissioners have also carried out a detailed investigation into this matter and have to date recovered €864m for the Exchequer, of which €225m was paid by financial institutions for the non-operation of DIRT with the balance of €639m relating to taxpayers who had untaxed funds associated with these accounts. The Revenue Commissioners have informed me that no evidence was seen by them 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.
