Revenue nets up to €34m in Ansbacher accounts probe

ALMOST €34 million has been collected as a result of the State’s long-running investigation into the controversial Ansbacher deposits.

However, more than 230 individuals who held accounts with the bank may still have to hand over millions more euro in unpaid tax.

It follows confirmation by the Revenue that it recently reached a €7.5m settlement with the offshore bank which operated the tax evasion scheme.

Ansbacher (Cayman) Ltd, which is now a subsidiary of the South African bank, FirstRand, said the payment was made in final settlement of its tax liabilities in Ireland.

Yesterday, a Revenue spokesperson said the settlement with Ansbacher followed "detailed discussions with the bank against the background of unusual circumstances and potential protracted litigation, with an uncertain outcome".

However, he stressed that the tax authorities were continuing to pursue individuals who held money in the Ansbacher accounts.

Up to the middle of December, 289 clients of Ansbacher were still under investigation by Revenue, of which only 55 have reached a final settlement.

According to the tax authorities, the vast majority of the €34m collected to date has come from around 80 Ansbacher account holders who have made payments on account. Almost 1 billion has been collected by the Revenue as a result of investigations into a series of financial scandals in recent years.

A report published in 2002 by High Court inspectors into the secret banking system operated by the late financier, Des Traynor, found evidence that Ansbacher operated a "sham" trust for wealthy businesspeople over most of the previous three decades.

Mr Traynor, who became known as Charles Haughey's "bagman", devised the illegal scheme while working as a senior executive with Guinness & Mahon bank in the early 1970s.

He established a subsidiary in the Cayman Islands called Guinness & Mahon Cayman Trust which became the main vehicle for the clandestine offshore accounts. The bank was subsequently sold and renamed Ansbacher (Cayman) Ltd.

Although the deposits were in theory operated by trustees the Cayman Islands, they were effectively controlled by the Irish-based depositors.

Details of the complex offshore banking system were first revealed in 1997 at the McCracken Tribunal, which investigated the background to large payments by Dunnes Stores to Haughey and former minister Michael Lowry.

Last month, the Government announced that it had reached an agreement with a number of companies involved in the scandal to pay for the cost of the inspectors' investigation. Three companies Ansbacher, Guinness & Mahon (Ireland) and CRH agreed to pay over €1.25m in settlement of the cost of the inquiry, though the State originally sought €3.4m from a total of 10 companies linked to the Ansbacher scheme.

A statement issued by Ansbacher said the bank had always maintained the position that it did not have any tax liability in Ireland. However, it acknowledged that the Irish tax authorities took a contrary view.

"The resolution of this matter brings to an end all issues between Ansbacher and the Irish regulatory authorities which date back to problems inherited from Guinness & Mahon companies more than 30 years ago," said Ansbacher chief executive Richard Spilg.

FirstRand chief executive Laurie Dippenaar endorsed Ansbacher's decision to reach a settlement with the Revenue as the bank had received advice that litigation on the matter could last another five years.

"Therefore we have decided to take a reduced level of cost 'on the chin' now through this settlement, so that Ansbacher and FirstRand can put this issue behind them and move on," said Mr Dippenaar.