Tax dodge was encouraged

NIB branch managers admitted to the High Court inspectors that bogus non-resident accounts were widespread across the bank’s network, resulting in large-scale tax evasion between 1988 and 1996.

The inspectors’ report concluded that NIB’s conduct constituted an unlawful and improper practice.

It also criticised the bank for opening and maintaining fictitious and incorrectly named accounts, and for failing to deduct proper DIRT rates from special savings accounts which further aided tax evasion.