Dáil Éireann Debate, Tuesday - 14 November 2017
103. Deputy Pearse Doherty asked the Minister for Finance the number of times Irish banks or their offshore offices refused to provide data or information requested by the Revenue Commissioners; if the requests were eventually acceded to; and if he will make a statement on the matter. [47620/17]
Amharc ar fhreagraI am advised by Revenue that, as part of its offshore investigations, Irish financial institutions and their Irish registered subsidiaries were required on up to 40 occasions to provide information and data to Revenue usually on foot of a High Court Order.
The type of information covered by these Orders included-
- information, explanations and particulars, where such information was known to the financial institutions or subsidiaries concerned, and
- copies of books, records and other documents in the power, possession or procurement of the financial institutions or subsidiaries concerned,
in relation to transfers of funds made to, or from, offshore accounts and investments in offshore products.
The financial institutions and subsidiaries concerned complied with the terms of the High Court Orders and supplied the information required by the Orders.
As respects foreign registered subsidiaries of Irish financial institutions, as these were companies registered and located in another jurisdiction, Revenue has no power to compel them to provide any information or documentation in respect of records relating to their account-holders or investors.
In one case, following a process of engagement with Revenue, an Irish financial institution sought to pass a resolution in a foreign jurisdiction to require its foreign registered subsidiary to provide information on its account-holders holding an address in the State. The Directors of the subsidiary concerned challenged the matter and the Court in that jurisdiction held that it would be against public policy for the Court to exercise its discretion to compel the Directors of that foreign registered subsidiary to disclose the information.
The international environment has changed significantly in recent years, with the emergence of closer cooperation between tax authorities worldwide aimed at those who hide their profits or gains offshore. Initiatives such as OECD’s Common Reporting Standard are now helping to ensure that tax administrations have greater visibility in respect of the offshore assets and income of their residents.
