McCreevy gets bogus accounts windfall

FINANCE Minister Charlie McCreevy will receive a multi-million euro boost in the budget after thousands of bogus off-shore account holders were ordered to pay up huge amounts of back-taxes by the end of the year.

The Revenue Commissioners have identified 30,000 individuals linked to the accounts who must pay penalties and unpaid tax by December 17 or face prosecution.

A spokesman for Mr McCreevy described it as a windfall which would help cushion the difficult economic circumstances as detail of this year’s budget are finalised.

While the recovered funds will come too late to be included in the Budget, which takes place in early December, the money can still be used for Exchequer spending next year. Officials have declined to speculate on how much money they hope to receive, but it is certain to run into hundreds of millions of euro.

Last year some €227m was recovered voluntarily from 3,700 bogus account holders - just a fraction of the 13,500 accounts now being hunted by the taxman. Revenue chief Frank Daly last night warned that any remaining account holders were drinking in the last-chance saloon.

“The interest clock is ticking and if bogus account holders foolishly choose to keep their heads down instead of responding within 60 days, they face a very real prospect of investigation with a view to prosecution,” he said.

The 30,000 people connected to the 13,500 bogus accounts will receive letters over the coming days warning them to pay back-tax, interest and penalties to their tax office within 60 days. The names of any individual whose settlement exceeds €12,700 will be published when the deadline expires.

A spokesman for McCreevy said he would approach the extra money prudently rather than making spending promises based on the likely windfall. “In a tight budgetary situation, it is better to underestimate the amount of money that’s likely to be available,” a spokesman said.

Financial institutions supplied the names and addresses of bogus account holders to the Revenue on foot of a series of High Court orders. Mr Daly said some cases were already being examined to assess their suitability for prosecution.

He said information on foot of further High Court orders will continue to flow into the Revenue over the next few months.

“While it is clear we are facing a major programme of investigations, we are making significant progress and we will stick with this for as long as it takes,” Mr Daly said.