Tax evaders escape jail as 28 sentenced for social welfare fraud

LARGE-SCALE tax dodgers only get fines when they end up in court, but small fry dole fraudsters can often end up in jail, figures released yesterday show.

Not a single individual was jailed for tax evasion last year, while a total of 28 people were imprisoned for social welfare fraud, according to the Comptroller and Auditor General.

Yet again, the C&AG’s annual report showed the massive gap between the level of prosecutions by the Revenue Commissioners and the Department of Social Welfare.

So-called special investigations by the taxman have yielded €1.56 billion for the exchequer, spanning the DIRT, NIB, Ansbacher, Pick Me Up Schemes, Mahon Tribunal, Moriarty Tribunal and Offshore Assets inquiries.

Last year, Revenue referred 27 serious tax evasion cases for investigation with a view to prosecution, but only six ended up in court. While convictions were obtained in all cases, no jail sentences were imposed, although there was one suspended sentence of two years handed down and the remainder were fines.

“Of a total of 41 cases on hand at the end of 2003, 32 are still under investigation, six have been submitted to the DPP, bench warrants have been issued in two cases and one case is before the court,” the report says.

As for prosecutions against people who did not file tax returns, 13,467 warning letters were issued, follow-up legal proceedings were initiated in 1,931 of these cases and convictions were obtained in 627 cases with fines totalling €702,511.

“In 2003, penalties were imposed by Revenue on 455 employers who failed to make P35 employer returns on time. The total amount of penalties paid in 2003 was €439,348,” the report says.

By contrast, the Department of Social and Family Affairs was far more successful in achieving jail sentences. Prosecutions are taken against employers who fail to carry out their statutory obligations and people who defraud the welfare system.

During 2003, 355 criminal cases, up from 205 in 2002, were forwarded to the Chief State Solicitor’s Office for prosecution. 186 welfare fraudsters went to court, and while around half got fines, 28 were imprisoned - mainly for unemployment payment fraud.