Angry legitimate account holders are unfairly targeted by Revenue

THE REVENUE Commissioners has been inundated with calls from people who say they are being unfairly targeted as holders of bogus non-resident accounts.

Last week the Revenue began sending warning letters to 40,000 individuals it suspects are linked to the accounts, telling those who have a tax liability to pay the tax, interest and penalties due.

Individuals targeted could face a Revenue investigation or prosecution if they fail to settle their tax affairs by the March 27 deadline.

But many claim they held the accounts legitimately while working abroad and say the authorities should have conducted more research before sending out thousands of warning letters.

Radio phone-in shows have also been contacted by angry legitimate account holders, who have threatened not to co-operate with the trawl.

But independent tax consultants have urged anyone who received a letter to comply with the request to provide all relevant documentation to prove they were legitimate account holders.

Damian Riordan of Ernst & Young said it should not be difficult for legitimate account holders to prove they used the accounts properly.

“If you held an account legitimately, you should inform them of this position. Do what you can to provide evidence, such as a stamped passport or residents’ visa. If the account was held a long time ago, they may have to accept a slightly lower level of proof. “Nobody who gets a letter like this should ignore it.

“The Revenue has made it clear that they intend to pursue every bogus non-resident account,” Mr Riordan said.

A spokesman for the Revenue accepted that legitimate account holders may be caught up in the trawl but defended the scope of the inquiry.

“This investigation has been initiated on foot of High Court orders and sending letters out where there is a general suspicion surrounding an account. It is a broad sweep approach, there’s no question about it, but if someone held a legitimately held an account they should be able to prove it.”

The Revenue has been receiving information from banks and building societies about non-resident accounts they held in the 1980s and 1990s, and the individuals who deposited funds in them. The information is being released on foot of High Court orders. So far, this process has linked close to 70,000 names with these accounts.

This campaign follows the targeting of 30,000 individuals last year, which resulted in the Revenue collecting €100 million by December 17, 2002.

A large number of payments made before the December deadline were for 100,000 with several individuals being forced to pay between €1 million and €6 million. The majority of money collected comprised hefty interest charges and penalties.