Revenue offshore tally over €9m

THE Revenue Commissioners have already collected over €9 million from Irish holders of overseas bank accounts following its latest crackdown on tax evasion.

Irish banks wrote to customers last month warning them to disclose the existence of accounts in Britain, Northern Ireland, the Isle of Man and the Channel Islands, following changes to legislation announced in the Finance Bill earlier this year.

Revenue plans to use new powers to trawl offshore accounts opened by Irish banks. The initiative will determine whether individuals resident in Ireland had stashed money outside the country to evade tax.

Holders of offshore accounts face investigation and possible prosecution if they cannot provide a legitimate explanation for the source of money in these accounts. They also face penalties if they have failed to declare interest income from these accounts in their annual tax returns.

An estimated 120,000 customers have received letters in respect of the Revenue crackdown. Customers who have a tax liability have been given the chance to make a so-called “qualifying voluntary disclosure” to Revenue. This would put a cap on the financial penalties for non-payment of tax due and allow them to avoid prosecution and having their names published on the quarterly list of tax defaulters. They will still face a bill for the full amount of unpaid tax.

Revenue said yesterday 160 people had already made disclosures, with an average liability of €59,000. It expects most people with tax liabilities to come forward closer to March 29, the deadline for making voluntary disclosures.

Revenue said it would withdraw protection from prosecution in cases where individuals failed to make voluntary disclosures before the deadline and were later found to have a tax liability.

Anyone who makes a voluntary disclosure will be granted two months to arrange payment of their liabilities. All outstanding tax, interest and penalties must be paid by May 28.