Take nears €2.4bn in tax evasion sting

THE Revenue Commissioners says its investigations into widespread tax evasion are nearing their end having yielded €2.42 billion.

The Revenue said its investigations of those who held untaxed income in bogus non-resident bank accounts, single premium life assurance policies and its other major scams brought in €132 million in tax, interest and penalties in 2007 and more money has come in since the beginning of the year.

By the end of last month, the Revenue netted more than €860m from its probe of those who held untaxed, or “hot money”, in bogus non-resident bank accounts. Nearly two-thirds of the 12,200-plus settlements came after the Revenue’s voluntary disclosure offer ended. Those who did not avail of voluntary disclosure faced higher fines and penalties.

The probe of untaxed funds held offshore has yielded a total of €910m to Revenue so far from around 14,700 people.

The yield from hot money in single premium life assurance policies stood at €450.6m at the end of March from nearly 5,300 people. The interest and penalty yield from this inquiry was more than twice the tax owed.

So far the Revenue had taken €41m in 23 settlements with individuals who had a tax liability following disclosures at the Mahon and Moriarty tribunals.

Revenue chair Josephine Feehily said the Ansbacher and bogus non-resident investigations were almost complete.

The probe of untaxed funds in policies sold by National Irish Bank for CMI brought in almost €60m.

The Revenue’s abilities to detect evasion was strengthened yesterday by the signing of tax co-operation agreement with the Isle of Man.

This will allow the Revenue Commissioners to request information from their counterparts in the Isle of Man about bank accounts or the beneficial ownership of companies or trusts held by Irish residents.