Revenue ‘using scaremongering tactics’
More than 13,000 holders of bogus offshore counts were yesterday given a final warning by Revenue that they could face criminal prosecution if they don’t reach a settlement on unpaid DIRT tax by that date.
However, the spokesperson of the Reaction Group, Conor O’Mahony, claimed that the tax authorities were trying to frighten people unnecessarily. “I cannot understand why Revenue has chosen the week before Christmas as the final deadline.
“It is targeting people when they are at their weakest and most vulnerable. I know many account holders, including a lot of elderly people, who are extremely worried and upset by this warning,” said Mr O’Mahony.
“Revenue are going after people in a blunderbuss approach without making allowances for the fact that some people have inherited this problem. It is creating enormous anxiety.”
Yesterday, the Revenue sent out personal reminders to non-resident account holders that the 60-day deadline to make a full and final settlement expires on December 17. A spokesperson said the tax authorities were committed to fully investigating all cases where the account-holder had failed to respond to notices from the Revenue.
He warned that these people will face additional penalties and interest plus the possibility of a criminal prosecution if they fail to make a settlement within the next 10 days.
“Although prosecutions will not be automatic, a number of cases will be selected for prosecution,” the spokesperson said.
He also warned bogus account holders who have not yet been contacted by Revenue that tax officials are conducting further investigations to trace all such persons. The widespread evasion scheme used through the operation of bogus non-resident accounts was first highlighted by the DIRT inquiry led by the late Fine Gael TD, Jim Mitchell.
Revenue has collected almost €500m from the DIRT investigation. Around €200m has been paid over by financial institutions, including a €114m payment from AIB, from look-back audits of their DIRT tax liabilities.
Another €227m has been collected as a result of voluntary disclosure through an amnesty granted last year, while a further €50m has been handed over during the current, final settlement stage.
Although the Revenue have no overall estimated of the final figure due to be collected, it is believed it may eventually total more than €700m. The largest tax settlement by an individual so far has been over 6m.
Anyone who makes a settlement over €12,700 will also have their name published in the State’s official paper, Iris Oifigiúil.
The Reaction Group is also preparing to mount several legal actions against a number of financial institutions on the basis of the advice given by banks to customers about non-resident accounts.
However, Mr O’Mahony stressed that the group was not advising people to hide from the Revenue. “If people have a tax issue, they need to address that,” he said.
