Dáil Éireann díospóireacht -
Thursday, 6 Nov 2003

Vol. 573 No. 5

Written Answers. - Non-Resident Accounts.

Pat Rabbitte

Ceist:

49 Mr. Rabbitte 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 at the latest date for which figures are available; 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. [25790/03]

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. This inquiry work commenced on the 16 November 2001.

I am advised by the Revenue Commissioners that 18 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 26 financial institutions. No further applications for such orders are pending in the non-resident account inquiries.

Information that is being supplied by deposit takers under court orders is becoming available on a phased basis and very large volumes of information have already been reported to Revenue. Inquiry work on 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 and October 2003. These general inquiry letter issues relate to 76,000 non-resident accounts that had Irish addresses connected to them. To date 149,000 inquiry letters have been issued to taxpayers in respect of these non-resident accounts. The next general inquiry letter issue is scheduled to take place within the next few months and it is expected that this represents the last significant tranche of letters.

While it is clear that Revenue is facing a long programme of investigations the Revenue Commissioners have informed me that they are satisfied that significant progress has been made in this final phase of the investigations. Since 15 November 2001 payments of €240 million have been made to Revenue by taxpayers who held bogus non-resident accounts. This is in addition to the €227 million paid as a result of the 15 November 2001 voluntary disclosure scheme and the €220 million in DIRT tax, interest and penalties paid by financial institutions.