State not tough on tax cheats, says Labour

THE State was yesterday accused of being more interested in pursuing lowly social welfare fraudsters than tax cheats.

Labour Party deputy leader Liz McManus said the latest figures showed that 200 cases of social welfare fraud went through the courts during 2003 - resulting in 11 people being jailed and 17 suspended sentences.

By contrast, according to the Revenue Commissioners annual report published last month, there were only seven convictions for serious tax offences last year. Fines were imposed in six of the cases with only one term of imprisonment imposed - a two-year suspended sentence.

Ms McManus was responding to the 2003 Annual Report of the Department of Social and Family Affairs, published over the weekend.

“Neither social welfare fraud or tax fraud should ever be acceptable, but it is remarkable that significant numbers of people are going to jail for welfare offences,” she said. “The overwhelming majority of tax criminals seem to be able to buy their way out of prosecutions and jail sentences because they can afford to pay the financial penalties imposed by the Revenue Commissioners,” she said.

She argued that tax evasion was not a victimless crime, because money foregone on tax was ultimately paid for by compliant tax payers.

“We now know from successive reports that tax evasion in this country was a major industry which involved, among others, professional advisers, accountants, banks and financial institutions. The Ansbacher Report, published in July 2002, revealed a detailed web of criminality, yet two years on there has not been a single prosecution.”

“There will be real sense of disappointment and let down among the public if last week’s Inspector’s Report into the NIB affairs also fails to result in criminal prosecutions,” she said.

She said while Revenue had done an exceptional job in its pursuit of offshore account holders - which has resulted in a €1.5 billion windfall for the State - tax crime would only be wiped out when those involved were convinced there was a real risk of going to jail.