Dáil Éireann Debate, Monday - 11 September 2017
204. Deputy Joan Burton asked the Minister for Finance the amount raised by the Revenue Commissioners in the clampdown on offshore bank accounts earlier in 2017; the number of persons involved; and if he will make a statement on the matter. [38626/17]
View answer207. Deputy Joan Burton asked the Minister for Finance the number of tax payers that availed of the provisions of section 56 of the Finance Act 2016, by county, in tabular form; and the amount of tax, interest and penalties received by the Revenue Commissioners. [38631/17]
View answer208. Deputy Joan Burton asked the Minister for Finance further to section 56 of the Finance Act 2016, the number of criminal prosecutions likely to arise from the failure by taxpayers to bring their affairs up to date by 1 May; if he will allocate additional resources to the Revenue Commissioners to ensure that all those that have failed to bring their affairs up to date are prosecuted; and if he will make a statement on the matter. [38632/17]
View answer212. Deputy Joan Burton asked the Minister for Finance the tax, interest and penalties received by the Revenue Commissioners arising from the enactment of section 56 of the Finance Act 2016, by the source of income and or asset previously undeclared; if he will provide an analysis of the number of defaulters by income source that provided declarations, in tabular form; and if he will make a statement on the matter. [38637/17]
View answerI propose to take Questions Nos. 204, 207, 208 and 212 together.
In his Financial Statement to the House on 11 October 2016, Minister Noonan indicated that he would act to restrict the opportunity for tax defaulters with outstanding tax liabilities relating to offshore matters to avail of the voluntary disclosure regime. In line with this undertaking, section 56 of the Finance Act 2016 provided that, as and from 1 May 2017, the making of a qualifying disclosure is no longer permitted where the tax liabilities involved relate to offshore matters.
The period during which a qualifying disclosure could be made to Revenue in relation to offshore matters ended on 4 May 2017. Disclosures received are still being processed and final data will be available shortly. I am advised by Revenue that the number of disclosures exceeds 2,700, with a declared value of more than €79 million. I understand also that the disclosures relate to a range of offshore matters, including foreign sources of employment-related income, foreign pensions, income from overseas property, offshore bank accounts, offshore trusts and offshore funds. A breakdown between tax, interest and penalties of disclosures to date is as follows:
Tax: €48.5 million
Interest: €24.5 million
Penalties: € 6.0 million
The following table provides an analysis of the previously undisclosed income sources and assets that were included in the qualifying disclosures received
|
Source |
Percent |
|
Pension |
16% |
|
Bank Account |
17% |
|
Shares |
20% |
|
Property |
29% |
|
Offshore Fund |
4% |
|
Trust |
1% |
|
Earned Income |
3% |
|
Inheritance |
1% |
|
Multiple |
4% |
|
Unspecified |
5% |
I am advised by Revenue, that a full analysis of disclosures received by county is not currently available, this analysis will be available once all disclosures have been finalised.
For those who have tax liabilities relating to offshore matters and who did not act by the deadline of 4 May 2017 to address them, they now face the prospect of substantially higher penalties, publication in Revenue’s Quarterly List of Tax Defaulters and possible prosecution.
The international environment is changing, with closer cooperation and information-sharing between tax authorities worldwide aimed at identifying those who seek to hide their profits or gains offshore. Revenue is at the forefront of international developments for Automatic Exchange of Information (AEOI), which include the OECD’s Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA) initiative. Data received under FATCA is currently being examined and it is expected that enquiry letters will be issued later this year to relevant taxpayers, and data under CRS is not expected until 30 September 2017. These initiatives will provide Revenue with considerable amounts of data about offshore accounts, structures and assets, and Revenue has advised me that they are committed to making full and effective use of this information to pursue rigorously anyone who attempts to use such means to evade their tax obligations. It is not possible at this point to estimate the number of prosecutions likely to arise from Revenue’s enquiries relating to data received under AEOI. However, I am advised that cases will be investigated with a view to prosecution where the facts and circumstances warrant such a course of action.
I will continue to fully support Revenue in relation to its pursuit of non-compliant taxpayers and will ensure that they have all the necessary resources required to achieve this objective.
