Dáil Éireann díospóireacht -
Tuesday, 3 Mar 1998

Vol. 488 No. 1

Written Answers - Tax Evasion.

John Gormley

Ceist:

167 Mr. Gormley asked the Minister for Finance the measures, if any, in place to ensure that hot money or money being used for the evasion of taxes is not being invested in Government investment schemes, such as An Post Savings Bonds or Government securities; and the legislative means, if any, that exist to claim back capital and interest claimed by investors in this regard. [5647/98]

Minister for Finance (Mr. McCreevy)

Government investment schemes comprise, essentially, Government Bonds, Exchequer notes and the personal savings schemes operated for the NTMA by An Post.

As regards tax evasion, Government investment schemes are subject to relevant powers of the Revenue Commissioners. A register of holders of Government bonds is held in the Central Bank, and a register of holders of Exchequer notes is kept by the NTMA. The Revenue Commissioners have the power to seek the names and addresses of holders where interest is paid. The Revenue Commissioners also have power to apply to the High Court or the Appeals Commissioners to gain access to the accounts in a financial institution of a named individual, if they suspect that tax is being evaded. Moreover, they can apply to the High Court for an order "prohibiting for such period as the Judge may consider proper any transfer of, or dealings with, without the consent of the judge, any assets or moneys of the person to whom the order relates that are in the custody of the financial institution at the time that the order is made — section 908, Taxes Consolidation Act, 1997.

As regards money-laundering and the proceeds of crime, section 32 of the Criminal Justice Act, 1994 provides for the proper identification of customers and for the keeping of records of identification and of transactions. It also provides that, where there are suspicions of money laundering, they are to be reported to the Garda Síochána. Government Bonds are not sold directly to individual purchasers. Exchequer notes are sold to individual applicants only on production of satisfactory identification. An Post requires verification of identity on the opening of a new POSB deposit account, or in respect of individual transactions, or linked transactions, amounting to more than £10,000 from new or unverified existing Savings Certificates/Bonds or Prize Bonds customers. An Post has issued detailed instructions to staff in relation to these matters.

Where proceeds of crime are identified, there are provisions, under the Criminal Justice Act, 1994 and under the Proceeds of Crime Act, 1996 for applications to be made to the courts for the freezing and seizure of the assets concerned.