Dáil Éireann Debate, Thursday - 3 March 2005
73 Mr. Howlin asked the Minister for Finance if he is satisfied that sufficient steps are being taken to combat tax evasion in view of the continuing high level of settlements and in view of the large number of settlements reported by the Revenue Commissioners each quarter; and if he will make a statement on the matter. [7156/05]
Amharc ar fhreagraI am satisfied that the Revenue Commissioners are pursuing a programme which is dealing in a very determined way with tax evasion. The commissioners are taking an approach which, depending on the nature of the case, involves either a monetary settlement and possible publication, or criminal investigation and prosecution. This combined policy has yielded significant results.
In recent years, for example, Revenue special investigations have yielded a total in excess of €1.6 billion. Revenue's normal audit programme each year also continues to recover significant tax, together with interest and penalties. For 2004, in excess of €400 million was collected in this audit programme in approximately 16,000 cases.
Having regard to the extensive resources required and the very significant evidential requirements in prosecuting cases of serious tax evasion, the majority of cases are dealt with by means of monetary settlement. This involves payment of the tax evaded, interest and penalties and, provided the case meets the criteria in section 1086 of the Taxes Consolidation Act 1997, publication of the details in Iris Oifigiúil. It is worth noting that in settlement cases the ultimate sum paid involves a penalty that can be equivalent to the tax evaded which, when combined with the public odium brought about by publication, is regarded as a severe sanction.
The high level of settlements is a reflection of the targeted approach used by Revenue which is to focus its compliance resources on the areas and cases of highest risk.
I am informed by Revenue that they are prosecuting an increasing number of cases of serious tax evasion each year. This work is dealt with in their investigations and prosecutions division and recent figures indicate that this new approach is proving successful. Currently 45 cases are under investigation for prosecution, eight cases are with the DPP, directions to prosecute have been received from the DPP in another four cases and these are proceeding to court. Bench warrants have been issued in three cases and three cases are before the courts.
It should be noted that Revenue also takes prosecutions in the District Courts each year in respect of in excess of 1000 cases related to non-filing of tax returns.
New powers to assist Revenue to pursue tax evasion are included in this year's Finance Bill, which completed Committee Stage in the Dáil yesterday evening. In this, my first Finance Bill, I have sought to strike a balance between combating tax evasion and avoidance and ensuring that the tax system recognises the needs and concerns of compliant taxpayers.
74 Mr. Howlin asked the Minister for Finance the number of court prosecutions initiated as a result of tax evasion in respect of each year since 1997; the number of cases in which convictions were secured; the number of cases in which prison sentences were imposed; the sentence in each case; if he is satisfied with the level of court cases taken having regard to the high level of evasion; if he will report on the work of the investigations and prosecutions division of the Revenue Commissioners; and if he will make a statement on the matter. [7157/05]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the table provided gives information in relation to court prosecutions initiated for tax evasion.
|
Year |
No. of Cases |
Fines Imposed |
Custodial Sentence (suspended in brackets) |
Details of Custodial Sentence |
|
1997 |
1 |
£635 |
Nil |
|
|
1998 |
6 |
£42,854 |
2 (2) |
(a) six months (suspended)(b) two years (suspended) |
|
1999 |
1 |
£19,046 |
Nil |
|
|
2000 |
3 |
£952 |
2 (1) |
(a) two years (18 months on appeal)(b) 12 months (suspended) |
|
2001 |
4 |
£14,284 |
4 (2) |
(a) twelve months(b) six months (suspended),(c) six months (suspended),(d) three months |
|
2002 |
3 |
€5,540 |
1 (1) |
six months (suspended) |
|
2003 |
6 |
€29,365 |
Nil |
two years (suspended) |
|
2004 |
1 |
€5,000 and 180 hours community service. |
1 (1) |
three months suspended provided convicted party completes 180 hours community service |
|
2005 |
4 |
1 case fined €10,800 and adjourned to await report on suitability to serve 120 hours community service in lieu of three months prison sentence. The other three cases are awaiting sentencing |
Revenue has a very clear policy of prosecuting cases of serious tax evasion. This function is tasked to their investigations and prosecutions division. Following Revenue restructuring in 2003, all investigation activity was consolidated in this division with a remit to co-ordinate all Revenue prosecution work and in particular to increase the number of criminal investigations for serious tax offences and ultimately to increase the number of prosecutions. The number of investigators was also increased for this purpose.
Recent figures indicate that this approach is now proving successful. There are currently 45 cases under investigation for potential prosecution, the DPP is considering a further eight cases and has given directions to prosecute in another four. Bench warrants have been issued in three cases for failure to attend court and three cases are in the court process. If this is combined with the four cases for which convictions have been obtained in 2005, it is the highest combined figure to date and vindicates the decision to concentrate Revenue's prosecution resources in one area.
