Just two tax dodgers jailed in 10 years

ONLY two tax dodgers have been sent to jail in the past ten years after being convicted of serious tax evasion.

Suspected large-scale tax evasion and money laundering through insurance products will be investigated by the Revenue Commissioners in the New Year.

Up to €33 billion was invested in one product, single premium insurance policies, from 1988 to 2001, according to figures from the Department of Finance.

Although it is not clear how much of this may have been so-called “hot money”, analysts suggest the investigation could reap hundreds of millions for the Exchequer in unpaid taxes.

The total take from special investigations into tax evasion schemes is now €1.6bn, up another €50 million within the last four months.

Nonetheless, the number of people being jailed for tax evasion remains extremely low, with only two people actually going to prison - one for 10 months in 1995 and one for three months in 2001.

Aside from that, another nine received suspended sentences and one got community service this year.

Yet a company owner who paid €1.6m in a tax settlement only received a fine of €1,750 when his case went to court.

Responding to queries from Green Party TD Dan Boyle on the number of prosecutions, Revenue chairman Frank Daly said that he made no secret of the fact that he would like to see different sentences being handed down.

“It is a matter for the courts,” he said.

At the moment, Revenue is dealing with 69 cases at various stages where prosecutions are expected to be taken - a record high.

The groundwork is being prepared for Revenue’s probe into the insurance industry products, Mr Daly said, adding that it will concentrate on policies where large lump-sum investments were made:

Single premium policies.

Guaranteed growth bonds.

Endowment policies.

Unit link savings policies.

Raising the matter with Mr Daly, Public Accounts Committee chairman Michael Noonan said figures he obtained shows €33bn was invested in single premium policies alone between 1988 and 2001.

“While I can’t quantify what the level of evasion might be, I am convinced beyond doubt that evasion took place,” he said.

The tax yield from the Revenue Commissioners’ ongoing special investigations has reached €1.6bn, comprising €780m from the bogus non-resident accounts, €54m from NIB, €44m from Ansbacher, €25m from the tribunals and €705m from offshore accounts.