Blitz on tax cheats nets €1.5bn

INVESTIGATIONS into tax evasion and corruption have yielded the Revenue Commissioners €1.5 billion over the past five years.

The Revenue said since it begun in-depth probes into various tax cheating scams, ranging from Ansbacher Bank to offshore accounts, it has uncovered evidence that many millions more could be handed over to the Exchequer.

At the launch of its annual report for 2003 yesterday, Revenue chairman Frank Daly said he was confident that the new search of offshore accounts would yield more than the €500 million it has got so far in interest, tax and penalties from 11,000 people.

This figures will increase when the Revenues uses its extensive powers to compel the banks to open up their books and reveal names of those who have not made a settlement.

"€1.5 billion from all of these investigations is a good dividend. I don't know what will come in the next phase," Mr Daly said.

Of the €500m, around 60% of this came from people who held accounts in the North, with the rest coming from traditional tax havens in Guernsey and Jersey.

The annual report reveals that since November 2001 the Revenue has taken in almost €750 million from its probe into bogus non-resident accounts. Some 8,000 cases were outstanding at the end of 2003.

On the Ansbacher investigation, Mr Daly said it has concluded 72 cases with €42.7m received in interest and penalties. However, it is taking time to move the case on and get money from the 289 individuals identified.

But progress has been made in the National Irish Bank/Clerical Medical Insurance scandal. Of the 452 cases identified, agreements had been reached in 291 cases with €50m netted for the Exchequer, while 113 cases were settled with no liability. The remaining 48 cases are the subject of ongoing investigation.

Investigations arising from the Mahon formerly Flood tribunal have netted €18.7m to the taxpayer so far and the Moriarty tribunal has yielded €6.3m

Mr Daly said he believed that the culture in Ireland of ignoring the consequences of tax evasion had ended. "People are coming to realise that tax evasion is just unacceptable and people are beginning to make the link between tax evasion and provision of services and the realisation that if you cheat on your taxes you are not cheating some nebulous body like the State, you are cheating on your neighbour and people who need services and the country," he added.

The Revenue confirmed that it was investigating the allegations of tax evasion at AIB and the Faldor company run on behalf of former executives. It made no comment on the progress of the inquiry.

Despite the thousands of illegally-held accounts discovered by the Revenue Commissioners not one bank official has ever been prosecuted for aiding tax cheats.