I 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.