The Deputy is referring to the article published last week which alleged that the Revenue Commissioners turned a blind eye to tax fraud in relation to DIRT and bogus non-resident accounts. This issue is not new. In April of this year I gave a detailed reply to a question on this matter from Deputy Rabbitte. On Thursday last the House discussed the position at length by way of special statements and questions and answers. Yesterday, the Chairman of the Revenue Commissioners appeared before the Committee of Public Accounts.
The pursuit of particular tax cases is a matter for the Revenue Commissioners and they deal with taxpayers on a confidential basis. Having regard to the material already available to the media and the public controversy arising from it, the chairman, exceptionally, made it clear to the Committee of Public Accounts that there was no settlement or write-off of tax in the particular case raised by the Deputy and went into some detail on the background to this issue. The chairman also referred to the discussions initiated in the past with the main financial institutions to ensure the non-resident account situation was regularised by review by the institutions of the relevant non-resident declarations. The Committee of Public Accounts was informed that in those discussions Revenue was not in a position to enter into general settlements, nor did they.
Even prior to the earlier media reports this year of historical non-compliance in this area, the Revenue Commissioners had already commenced a review of the position generally. Their review includes an examination of ongoing controls, procedures and liabilities and, where considered necessary, involves an examination of liabilities in past years. The review covers all financial institutions and is well advanced. As the Revenue Commissioners have made clear, since there was no question of having made a specific monetary settlement, they are required to pursue the relevant DIRT liability.
With regard to the further steps required to ensure there is no reoccurrence of these events, both Revenue and my Department are actively reviewing the existing powers which Revenue has in relation to tax evasion. This review involves examining extra powers in relation to access to bank accounts and the examination of the affairs of banking institutions. Revenue powers were last added to significantly in 1992, with further additions in 1993 and 1995. The outcome of this latest review will be examined in the light of the report of the Moriarty tribunal so that whatever measures are considered necessary in this area can be taken. The Government will be supportive of measures which can assure that the liability of persons for tax can be reasonably and effectively pursued.
