Banks give tax cheats’ names to the Revenue

BANKS have begun handing over names and addresses of tax dodgers who held bogus non-resident accounts to the Revenue Commissioners.

The taxman has already identified 1,800 account holders and is trawling through thousands of files under special powers from the High Court.

Banks and other financial institutions, which have already made payments of 208m euro in settlement of DIRT tax affairs, have began contacting account holders by letter informing them that information on accounts has been passed on.

That information includes names and addresses of accounts held or known to institutions and details of any person who benefited from interest and balances on accounts.

Up to now, the tax authorities had to seek permission on an individual basis when prosecuting a person for tax evasion. Under the new powers, they can pursue an unlimited number of people who face tough new penalties, including jail.

It is estimated that there are as many 60,000 bogus non-resident account holders, who owe just under 600m euro.

According to banking sources yesterday, a “continuous drip feed’’ of letters is being sent out to account holders, who are now facing the prospect of having to pay back up to four times their original deposits.

“It’s a very difficult and worrying time for anyone who holds these accounts and could lead to social problems and marriage break-ups. Some people are going to lose their life’s savings if they have to make a full settlement with the taxman, penalties and all,” the source said.

A Revenue spokesman said they were determined to check all accounts on which no tax was paid on interest earned.

However, the trawl is expected to take years.

False names and addresses were used to hide the real identity of the account holders, who tried to keep their accounts a secret from the taxman.

Meanwhile, an organisation, known as the Action Group for Non-Resident Account Holders, has been formed to provide a service for people who have been contacted by banks or who are seeking advice about bogus accounts.

The group, which was established by a retired bank official, claims that banks may have facilitated people in opening bogus accounts and is looking at ways of involving the banks in any future settlements that may be made with the Revenue.