Dáil Éireann Debate, Wednesday - 12 December 2018
76. Deputy Michael McGrath asked the Minister for Finance the work of the Revenue Commissioners on certain taxation matters revealed by documents (details supplied); the number of cases it is pursuing; the amount of tax involved; the amounts of tax, interest and penalties collected; and if he will make a statement on the matter. [52394/18]
Amharc ar fhreagraI am advised by Revenue that identifying and confronting non-compliance is a key focus for its work, and that this includes the use of offshore accounts, trusts or funds to evade tax. Revenue’s work in this regard, including the Foreign Income and Assets Disclosure initiative last year, has yielded some €1.2 billion to the Exchequer to date.
I am also advised that in targeting and acting against failures to comply with tax obligations, Revenue seeks to make the best possible use of all available information through the use of data analytics, social network analysis and anomaly detection tools.
The International Consortium of Investigative Journalists and their media partners internationally have, over recent years, made large disclosures of documents relating to offshore matters, known as the Panama and Paradise papers. While the volume of documents made available was substantial, it is understood that a considerable number were withheld from general release. I understand that Revenue approached the International Consortium of Investigative Journalists and its Irish media partner asking whether further information could be made available, but did not receive a positive response.
I am advised that Revenue examined the published information to identify any cases with links to Ireland and identified offshore companies, individuals, addresses and intermediaries of possible interest. These cases were profiled and it was found that, in many instances, no further action was required. There were instances also where the nature or age of the published information, or the current status of the entity concerned (liquidated, dormant or non-resident) meant that further action was not possible.
Enquiry letters were issued in over 100 cases, and a large majority of these have been closed with no Irish tax issues identified. Follow-up on remaining cases is proceeding. Settlements have been made in 6 cases, yielding €400,000.
In addition, I understand that Revenue wrote to two banks asking if they had any information, or records on the opening of offshore accounts or the depositing of funds in offshore accounts on behalf of Irish resident persons, not already disclosed to Revenue on foot of High Court orders under section 908 of the Taxes Consolidation Act 1997. Both banks responded that all information that had been encompassed by the terms of the High Court orders had been provided to Revenue.
Revenue worked closely with the Organisation for Economic Cooperation and Development’s Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC) in relation to the Panama and Paradise papers and the experience gained by the countries that engaged in this process has established a basis for effective cooperation and information-sharing in the event of any future data disclosures of this kind. There is, also, increasingly close cooperation between tax authorities worldwide in targeting those who seek to hide profits or gains offshore. Significant quantities of information are becoming available to Revenue under arrangements for automatic exchange of information, including FATCA (an inter-Governmental agreement to share information with the United States of America), DAC (a number of EU Directives on Administrative Cooperation) and CRS (the OECD’s Common Reporting Standard). All these mechanisms are providing tax authorities with greater visibility in relation to the offshore assets and income of their tax residents: I understand that Revenue has concluded some 190 interventions, with a yield of some €1.2 million, in cases involving previously undisclosed offshore assets.
I believe that Revenue’s work against offshore evasion has been committed and effective and I am assured that action against those who attempt to use offshore means to escape their tax responsibilities will continue to be a high priority target of Revenue’s compliance programmes.
