Revenue tax probes net close to €1.7bn

THE Revenue Commissioners have netted close to €1.7 billion from their investigations of tax evasion schemes.

Figures show €700 million was paid by tax dodgers in 2004 alone after Revenue launched an inquiry into undeclared income in offshore bank accounts.

The latest crackdown of money hidden in life insurance policies and the follow-up to the offshore accounts’ probe could yield a further €1 billion. A total of €734m has been received from the first phase of the investigation into assets held illegally in offshore accounts.

Revenue have begun the second stage of this inquiry into those who did not come forward and take advantage of its voluntary settlement terms, said chairman Frank Daly.

“The message has hit home that Revenue will pursue those who do not come forward and these people, those who decided to ignore the warnings, will unfortunately count the cost,” Mr Daly said.

Some €808 million has been received by the Revenue from more than 12,000 individuals who held bogus non-resident accounts.

The Revenue’s annual report for 2004, which was published yesterday, also disclosed that the Clerical Medical Insurance/National Irish Bank scam is also nearing its end. This has yielded €54.1 million from 415 settlements, with just 50 cases still open. Progress on reaching settlements with the Ansbacher account holders has been much slower with less than half of the 289 investigations concluded. The Revenue has been forced to use the courts to track down documents and records relating to Ansbacher individuals.

Mr Daly said that as of the end of May 2005, 123 cases have been finalised with settlements totalling €47.8m.

And the early stage of the inquiries of undeclared income in single premium life insurance policies has yielded €2.7 million from the few settlement that have come in so far. About 10,000 individuals have told the Revenue they will make a voluntary settlement and they have until July 22 to pay up.

He also disclosed that about 10,000 people have come forward to make voluntary disclosures in the insurance probe and money from the settlements will start to flow to the Exchequer from July onwards. The next part of this inquiry will see the Revenue return to the High Court to get the life insurance firms to reveal details of client who put money in single premium insurance policies between 1980 and 2005.

The Revenue also declared that it would be seeking to prosecute more individual for serious tax evasion offences. Last year, there was just one conviction for tax evasion, according to its annual report for 2004. Mr Daly said four people have been convicted of tax offences this year and a further six files are with the DPP.

“We recognise that prosecution is an area where there is a public expectation that we will do more, the public can be assured that we intend to deliver on that expectation.”

The Revenue’s report also reveals that the total amount of tax collected this year was €35.8 billion, some €2.2bn ahead of Budget expectations.