Vol. 547 No. 1
404 Mr. Rabbitte asked the Minister for Finance the number of prosecutions initiated under section 1078 of the Taxes Consolidation Act, 1997, in respect of failure to make returns in the short tax year, 2001; the number of prosecutions initiated for making incorrect returns over the same period; and if he will make a statement on the matter. [1503/02]
I am advised by the Revenue Commissioners that in the short tax year which ran from 6 April to 31 December 2001, a total of 1,584 cases were referred for legal proceedings under section 1078 of the Taxes Consolidation Act, 1997 for failure to make tax returns. Of this total, 1,364 cases were in respect of failure to submit income tax returns and 220 were in respect of failure to submit corporation tax returns. Figures available to date show that there were a total of 713 convictions in the nine months to 31 December 2001, some 689 in respect of income tax and 24 in respect of corporation tax returns. These figures are provisional and are likely to increase.
As regards prosecutions for making incorrect returns, in the nine months to 31 December 2001, there were four such prosecutions under Section 1078 of the Taxes Consolidation Act, 1997. One of the cases involved incorrect income tax returns, another involved incorrect VAT and employer PAYE returns, the third case involved incorrect VAT returns, while the remaining case involved incorrect income tax, VAT and employer PAYE returns. Convictions were obtained in all four cases. In three of the cases, a prison sentence was imposed, suspended in one and under appeal in another. Sentence has not, as yet, been imposed in the fourth case. Some 29 further cases are at various stages of investigation with a view to prosecution.
The Deputy will be aware of the very high level of evidence and proof required to sustain a criminal prosecution and that prosecutions can only be taken where such evidence is available. The Revenue Commissioners are satisfied with the progress they now are making under their more active criminal prosecutions programme for serious tax evasion. I am also pleased to be in a position to tell the Deputy that the commissioners will shortly launch a new dedicated prosecution division as part of its internal restructuring programme. This will further enhance progress in this area.
