Thousands of tax dodgers turning themselves in

THOUSANDS of tax dodgers who hid undeclared income in life assurance schemes are turning themselves in to the Revenue Commissioners to beat Monday’s deadline for prosecution.

Some 2,500 had made contact by close of business yesterday and a further last minute rush is expected on Monday before the midnight end to the amnesty which also offers mitigated penalties and anonymity for defaulters who settle voluntarily.

Others who fail to take advantage of the immunity offer will face prosecution, publication and retrieval of unpaid taxes, interest and penalties in full.

Revenue will begin a trawl to identify these people as soon as Monday’s deadline expires. It is expected the exercise could raise over €1 billion.

The probe hit an early glitch when the country’s biggest life assurance company, Irish Life and Permanent, refused a request to write to all its customers to warn them about Revenue’s plans.

But a warning was issued last night to people who believe financial institutions will not give up information about them.

This latest round-up of defaulters follows Revenue’s crusades against people who hid undeclared funds in bogus non-resident accounts and in off-shore schemes. Those crackdowns have so far brought in €1.6bn between them.

Initially, the tax inspectors are only targeting defaulters who invested €20,000 or more of undeclared funds in life assurance schemes going back to the 1980s.

A further phase is expected when smaller investments will be probed. The current inquiry will also hit people who received inheritances from those who invested the original sums.

A Revenue spokesperson said a huge number of inquiries had come from people who had no reason to worry which was seen as an indication of how seriously the public was taking the probe.