Revenue to crack down on tax evaders

A SENIOR Revenue Commissioners investigator says more tax evaders will be tracked down and prosecuted.

Speaking after Dublin businessman Leslie Reynolds was sentenced to three months in prison for engaging in widespread tax evasion, Derek Coleman, senior inspector of taxes, said the case shows it does not pay to cheat the taxman.

“I would hope that people will view this [sentence] and see that it is easier to be tax compliant than not to and Revenue are actively involved in searching out people who are involved in tax evasion.”

The Revenue Commissioners are set to prosecute a record number of individuals this year. Only one serious tax evader was prosecuted last year, but 80 cases are in the pipeline. Some five cases of serious tax evasion are currently before the courts and warrants have been issued in a further two.

Reynolds, who owns a steel company in Dublin, paid nearly €10 million to the Revenue in back taxes and penalties in the largest every settlement reached in the State. For years, he underpaid income taxes, VAT and concealed company records.

“This is by and far the biggest case we have had in the prosecutions division. Our investigations went to England, Spain and our tentacles stretched to Gibraltar,” Mr Coleman said.

Reynolds has been in business for more than 30 years and his company was one of the biggest in the steel industry. Last year it had sales of more than €13m and built up profits of €4m.