I ask the Minister for Finance to make a statement on the reported €6 billion now held in offshore tax havens in the Isle of Man. This follows the recent report by accountants, KPMG, on the matter.
Compliant taxpayers are entitled to ask about the scale of operations of Irish banks in the Isle of Man. It is incumbent on me to ask whether these operations by Irish banks in the Isle of Man have facilitated tax evasion by their customers in Ireland. I am aware that some of the money – I am not sure how much – in the Isle of Man is presumably there legitimately. It is difficult, however, to understand why in the current financial climate and under the rules of the European Union so many Irish banks and deposit holders should choose to channel such large amounts of Irish deposits into holdings in the Isle of Man.
I raised the issue with the Minister for Finance during Question Time in the Dáil last Wednesday. The Minister has been less than forthcoming by simply confirming that high level meetings have taken place between the Revenue Commissioners and a number of financial institutions. Five such institutions appear to have met the Revenue Commissioners and further meetings are to take place, the bulk of them to conclude before the end of the year. It is imperative that the Minister for Finance should state the amount of tax, penalties and interest likely to be involved in the current examinations by the Revenue Commissioners. Is he confident that all the tax due will be recovered, that the banks have supplied all the information the Revenue Commissioners require and that we can assure compliant taxpayers that the negotiations with the Revenue Commissioners will not result in some kind of trade-off between the banks and the Revenue Commissioners?
Recent statements by the chief executive of Anglo Irish Bank called on the banking sector to hold meetings with the Revenue Commissioners. In view of the Revenue Commissioners pursuit, and rightly so, of individual account holders, it is important that the directors and management of the banks should accept their share of the responsibility for guiding Irish deposit holders to the Isle of Man.
The official reason for the Minister for Finance's reticence on the issue is the traditional veil of secrecy in regard to the affairs of individual taxpayers and the Revenue Commissioners. On this basis, as with the investment made by Irish investors in the Onassis yacht, Christina, where up to €25 million of capital allowances will be granted, matters of important public interest are precluded from detailed discussion and examination by the Dáil. While confidentiality between the Revenue Commissioners and individual taxpayers is appropriate, it should not be at the expense of giving compliant taxpayers the information necessary to maintain their confidence in the equity and fairness of the taxation system.
The Minister for Finance confirmed that to date the money collected from the activities of the subsidiary operations of three of the financial institutions is in excess of €125 million. As many Irish banks are involved in offshore business in the Isle of Man, it is important that the Minister should give an indication to the Dáil of the total amount of money likely to be involved. At a time when many taxpayers on modest incomes fall into the 42% income tax bracket, and there have been cutbacks of €55 million in social welfare entitlements, it is incumbent on wealthy individuals and banks to pay their fair share of tax.