Dáil Éireann díospóireacht -
Tuesday, 12 Nov 2002

Vol. 557 No. 1

Written Answers. - Bogus Non-resident Accounts.

Jan O'Sullivan

Ceist:

78 Ms O'Sullivan asked the Minister for Finance the number of High Court orders sought to date by the Revenue Commissioners under the Finance Act, 1999, to require financial institutions to supply names, addresses and other relevant information regarding holders of bogus accounts; the number of cases in which orders have been granted; the general progress made to date in identifying the holders of such accounts who did not avail of the recent voluntary disclosure scheme; and if he will make a statement on the matter. [21292/02]

Minister for Finance (Mr. McCreevy)

Authorised Revenue officers are empowered to make an application to a judge of the High Court seeking an order requiring financial institutions to supply names, addresses and other relevant information concerning account holders who may have held bogus non-resident deposit accounts. Such applications are made under section 908 of the Taxes Consolidation Act, 1997, as amended by the Finance Act, 1999. I am advised by the Revenue Commissioners that information supplied by the financial institutions under section 908 orders will be the principal basis of identifying bogus non-resident account holders who did not avail of the voluntary disclosure scheme in 2001.

I am advised by the Revenue Commissioners that 17 applications for orders under section 908 have been made and have been granted. When one includes institutions which have been taken over or amalgamated with other institutions, these orders seek information in respect of accounts in 23 financial institutions. One other application has been made to the High Court in relation to one other deposit taker.

Information being supplied by deposit takers under court orders is becoming available on a phased basis. Work commenced in February 2002 on the initial lists of over 1,800 account holders identified in the DIRT look-back audits. Very large volumes of information are being reported to Revenue under the High Court orders. Inquiry work in relation to the examination of the first batch of taxpayers commenced on 11 October 2002. This inquiry work relates to 13,500 non-resident accounts that had 30,000 Irish addresses connected with them. As further information is received, more inquiries will be made on a phased basis.

Work commenced in February, as regards taxpayers who held bogus non-resident accounts which were detected in the course of the DIRT look-back audits of financial institutions in 1999 and 2000 and did not avail of the voluntary disclosure scheme in 2001.

While it is clear that Revenue is facing a long programme of investigations over a number of years, the Revenue Commissioners have informed me that they are satisfied that significant progress is being made in this new phase of the investigations. The Revenue Commissioners have also informed me that in recent weeks tax offices have been contacted by many recipients of the 11 October inquiry letters who are indicating their intention to make payments by the deadline of 17 December 2002 and it has been clarified that some others have no further tax liability. The Commissioners also inform me that they intend to proceed with enforcement action against those account holders who do not respond by 17 December.