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Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Non-Resident Accounts.

Batt O'Keeffe

Ceist:

369 Mr. B. O'Keeffe asked the Minister for Finance the number of people who have been written to by the Revenue Commissioners with regard to the efforts of same to collect outstanding taxes in relation to bogus non-resident accounts; the number who have replied; the number who have reached a settlement with the Revenue Commissioners; the number who have made arrangements to pay outstanding liability; the number who are being prosecuted through the courts; the total amount of money raised to date; and if he will make a statement on the matter. [20365/03]

As the Deputy is aware there is a statutory obligation on taxpayers to make correct returns of their tax liabilities and pay the correct taxes due for all years of assessment. Where it becomes known to the Revenue Commissioners that tax has been underpaid it is their responsibility to recover the unpaid taxes together with interest and penalties.

I am informed by the Revenue Commissioners that in the case of bogus non-resident account holders, Revenue provided an opportunity to those who had underpaid their taxes to make voluntary disclosures of the undeclared income, together with payment of the resulting tax liability and an amount of interest and penalties, capped at 100% of the tax liabilities, before 15 November 2001. This voluntary disclosure scheme was very widely publicised, as was Revenue's very clear intention to pursue those who did not avail of the scheme. A total of €227 million was received from 3,750 individuals who availed of this scheme.
I am advised by the Revenue Commissioners that information supplied by financial institutions under section 908 High Court orders became the principal basis of identifying bogus non-resident account holders who did not avail of the voluntary disclosure scheme. To date information relating to about 76,000 non-resident accounts, where the account holders had Irish addresses, have been passed to Revenue by financial institutions on foot of the High Court orders.
Inquiry work in relation to the examination of the first batch of taxpayers commenced on 11 October 2002. Further general issues of inquiry letters were made in January, May, July and September 2003. To date 142,000 inquiry letters have been issued to taxpayers in respect of 73,000 non-resident accounts that had Irish addresses connected to them. Further inquiry letters will issue in the coming months.
Because the project is ongoing, with regular tranches of inquiry letters being issued and being responded to in very large numbers, it is not possible at present to state exactly how many replies have been received at this particular time. However, to date approximately €223 million has been received from more than 6,000 individuals which brings the total amount of money raised to €450 million when the money raised under the voluntary disclosure scheme is included. There are also a substantial number of cases where there is no additional liability to tax. Revenue have advised that to date, in excess of 11,000 inquiries have been closed off on this basis.
The Revenue Commissioners have informed me that in general, taxpayers who held bogus non-resident deposit accounts will be considered for an investigation with a view to prosecution where they do not engage or co-operate fully with the current bogus non-resident deposit account inquiry programme. While no prosecutions have been initiated so far, a number of such cases have been considered and as the enquiry proceeds more will be considered.
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