Tribunal hears tax dodgers paid Revenue €2.2bn

TAX dodgers paid nearly €2.2 billion since the law was tightened in recent years, Revenue Commissioners’ chairman Frank Daly disclosed yesterday.

“As of today, I think the figure stands at €2.193bn,” he told the Moriarty Tribunal.

“That is made up of various investigations - bogus non-resident accounts, offshore assets inquiries, insurance investigations and tribunals.

“The yield as a direct consequence of this tribunal and McCracken is something like €7.7m. In respect of the other tribunals, Mahon /Flood, it’s about €30m to date.”

Mr Daly listed the €2.193bn haul as:

* Bogus non-resident accounts - €830m.

* Offshore assets - €813m.

* Single premium insurance policies - €391m.

* Ansbacher - €60m.

* National Irish Bank clerical medical scheme - €57m.

* Moriarty, McCracken and Mahon /Flood tribunals - €37.8m.

On top of that yield, approximately €10m a month was still coming into Revenue from these special investigations.

Further outstanding phases of the offshore assets investigation and the single premium investigation are expected to yield considerable sums, according to Mr Daly.

Part of the State’s financial institutions had been involved in facilitating tax evasion, Mr Daly told tribunal lawyer Jerry Healy SC.

Before 1999, Revenue had practically no power to intrude into financial institutions, but, that year, Revenue got powers enabling it to successfully conduct all the special investigations it had carried out.

These powers contributed to a positive attitude being taken by financial institutions, while there was also a change in the climate in relation to tax compliance. The tribunals had contributed to a climate in which tough powers could be sought and given.

Mr Daly admitted former Taoiseach Charles J Haughey’s secretive, complex and convoluted tax dodging left Revenue in a weak position and on the back foot in its dealings with him.

Evidence has been given Mr Haughey’s tax agents settled with Revenue for €5m and Mr Haughey avoided being named and having his details as a tax defaulter published because of the regulations at the time.

Mr Daly defended the Haughey settlement. Had they gone down the legal route the maximum they thought they would get was €1.9m and the costly litigation could have dragged on for years.

He didn’t think he had experienced any case so complex and secretive, or having structures so designed to keep Mr Haughey’s affairs from the taxman’s gaze.

Rossa Fanning BL, for Deputy Michael Lowry, queried Revenue’s treatment of his client compared with the former Taoiseach.