Revenue to look at Irish accounts held overseas
A spokesman for the Revenue Commissioners confirmed yesterday they were investigating the operation of two Irish banks with overseas branches as part of an overall approach to tracking down bogus accounts designed to circumvent Irish tax laws.
“We are not going about this like a bull in a china shop. Everything is done on foot of a High Court order,” the spokesman said.
However, despite the Revenue Commissioners’ success in forcing tax settlements totalling €890 million, there has so far not been a single prosecution of an official from a bank or building society who may have facilitated the operation of bogus accounts.
According to Labour party finance spokeswoman Joan Burton, it is an issue which has to be addressed urgently.”
Although the Revenue Commissioners have done excellent work in tracking down individual defaulters, they seem to operate on the premise that getting the money is more important than getting the man,” she said.
Describing Finance Minister Charlie McCreevy as the “cultural figurehead of this climate of throwing a blind eye to tax avoidance”, Ms Burton said only criminal prosecutions would restore public confidence in the tax system.
“It is not good enough either for banks to sit on their hands and say it is nothing to do with them,” she added.
Conor O’Mahony of The Reaction Group, a support organisation for those with overseas accounts, was also critical of the banks’ role.
“What the Revenue are doing is scare-mongering,” Mr O’Mahony said. “A lot of fear is being generated and, at the same time, the banks are getting away with murder.”
Mr O’Mahony said customers of Irish Life and Permanent’s Isle of Man subsidiary who had received letters warning them of a Revenue investigation should seek professional advice. “If there is a tax liability they must address it,” he said.
“However, the question must be asked why everyone was not afforded the same facility to seek professional advice prior to giving their names to the Revenue? What help have they given customers who have bogus accounts?”
About 3,000 customers of Irish Permanent’s Isle of Man branch yesterday began to receive letters warning the Revenue is to investigate deposits in the bank since it opened in 1993.
The Revenue has already sought information on customers at Anglo Irish Bank in the Isle of Man.
The bank holds more than €1 billion in funds in the Isle of Man of which about €30m is owned by Irish residents.
