I propose to take Questions Nos. 198 to 201, inclusive, together.
I am advised by the Revenue Commissioners that, in March 2010, they became aware of newspaper reports that the French authorities had come into possession of information in relation to bank accounts held with HSBC Bank, Geneva. Revenue wrote to the French authorities enquiring as to whether the data obtained by them contained information relating to Irish residents, and whether the French authorities would consider disclosing any such information to Revenue. The French authorities responded positively to that request and made a disclosure to Revenue on 23 June 2010.
The information received was evaluated carefully by Revenue and it was found, for a variety of reasons, that there was no basis for pursuing an investigation in many of the cases. These reasons included non-Irish addresses on certain of the accounts, persons associated with accounts not being resident or domiciled in the State, Revenue establishing that, by reason of prior disclosure, there was no liability, and, in the case of the corporate entities, that they were Irish-registered but non-resident for taxation purposes. The vast majority of the funds linked to Ireland in the HSBC data are related to the Funds industry. More than 98% of the total related to the Global Funds sector.
Following the evaluation of the information, Revenue initiated thirty three investigations. In eight of the investigations it was determined that there were no additional tax liabilities. Nineteen investigations resulted in settlement payments of €4,559,371. In addition, a further amount of €172,442 has been received, as payment on account, in relation to two appeals against tax assessments entered following investigations into the account holders. Six investigations are ongoing.
In addition to pursuing taxes owed, the Revenue Commissioners have also sought to have criminal proceedings brought in any cases where the information provided by the French authorities, and their own subsequent investigations, suggested that there was sufficient evidence to prosecute in respect of identified tax offences. Three convictions have been secured, resulting in the imposition of fines ranging from €4,000 to €25,000, and a further case remains under investigation. On the question of possible further prosecutions, it is not open to the Revenue Commissioners to comment on whether any individual or corporate entity is under investigation with a view to prosecution.
The Deputy will be aware, however, that it is a long-standing convention that the Minister for Finance does not intervene in matters involving Revenue and individual taxpayers. In that context, I would draw his attention to the provision enacted by the Oireachtas in the Ministers and Secretaries (Amendment) Act 2011 whereby the independence of the Revenue Commissioners in the performance of their functions was enacted in section 101 of that Act.
I am advised that a detailed report on the overall investigation has been submitted to the Public Accounts Committee by the Revenue Commissioners.
Revenue has a considerable track record in tackling serious tax evasion through the use of offshore accounts and other mechanisms to hide taxable income. Since 1998, Revenue has conducted a series of special investigations which yielded in excess of €2.7 billion in tax, interest and penalties. Revenue's approach has been adopted as best practice by the OECD and has been followed by other tax administrations. Considerable measures are now underway at OECD and EU level to improve the exchange of information between Revenue administrations to further limit the opportunity to avail of bank secrecy to facilitate tax evasion.
I want to commend Revenue on the pro-active role it has taken in relation to the tackling of tax evasion through the abuse of offshore accounts.
