10-year limit on pursuing tax evaders a ‘very strong impediment’

The head of Revenue has said a 10-year limit on pursuing tax evaders with offshore accounts was a "very strong impediment" in prosecuting Ansbacher-related cases.

Josephine Feehily also revealed Revenue officials had reservations about a tax amnesty introduced in 1993 which was availed of by 20 Ansbacher account holders.

She was speaking as TDs probed fresh claims that former politicians had evaded tax through offshore accounts.

Ms Feehily said investigations into 289 Ansbacher cases had yielded €113m.

Ansbacher accounts ran from 1971 until the mid-1990s. The time elapsed in investigating cases was typically 10 years. But the Revenue chief said this was also problematic as the Taxes Consolidation Act provides that proceedings must be initiated within 10 years after an offence is committed.

“The 10-year condition was a very strong impediment,” she said.

Criminal burden of proof in cases was very important but slow to get, she added.

“It may look like something, but proving it is different.”

However, she said she was not in favour of changing the 10-year rule, which is set in legislation.

People settled for a variety of reasons, she said, and there was a difference between a tax assessment and tax evasion.

She said the typical Ansbacher case related to a company director and involved someone wanting to shelter family wealth.

Ms Feehily detailed how a tax amnesty put in place by the Fianna Fáil-led Albert Reynolds government in 1993 had caused concern among Revenue.

Officials issued settlement certificates to account holders through an “impervious wall” or private declaration system behind which up to 20 people have remained protected to this day.

Ms Feehily admitted it was known that Revenue was not in favour of amnesties in general and had later written to the Department of Finance with some concerns.

Ms Feehily also said it was important from a fairness perspective to say that although a person may be named in Ansbacher reports, that in itself is not proof of tax evasion.

Her comments come after several former senior ministers this week denied allegations made in the Dáil that they had Ansbacher accounts.