I refer the Deputy to the statement I made in the House on 26 February 1998 in which I indicated that my Department and the Department of Enterprise, Trade and Employment have been directed, as a matter of urgency, to continue working on this issue with a view to coming up with an effective set of measures under company and tax legislation which will curb the misuse of Irish registered non-resident companies. Once this work is complete, it is intended to publish draft proposals to deal with this problem and seek comments from the regulatory and development agencies as well as other interested parties. Following this, the matter will be brought to the Government for decision on what measures will be introduced.
On the question of representations from tax authorities in other countries, I am informed that concerns about the operation of Irish registered non-resident companies have been raised with the Revenue Commissioners by certain countries, such as the Baltic States, in the context of double tax treaty negotiations, and also informally at OECD and certain other international fora.
The Revenue Commissioners have informed me that they have received about 20 queries under the VAT programme of mutual assistance seeking verification of specific invoices relating to Irish registered non-resident companies. In relation to direct taxes, while the Revenue Commissioners have received a number of general requests for information on Irish registered non-resident companies from other tax authorities, no specific allegations or complaints have been received about individual companies. In addition, under customs mutual assistance programmes, they have received 14 specific inquiries about such companies. I am precluded, however, from giving further details of these cases as this might prejudice ongoing investigations in the countries concerned. An estimated 50 further inquiries of a general nature have been received by the customs authorities in relation to Irish registered non-resident companies.
