Revenue’s disclosure scheme nets €33.7m

THE clock is ticking on bank customers who have untaxed money hidden in deposit accounts as the Revenue Commissioners prepare to shut the door on an amnesty at midnight tonight.

Already the voluntary disclosure scheme announced seven months ago has brought in €33.7 million in taxes from income belatedly declared by 622 individuals, meaning they made an average payment of more than €54,000 each.

But up to yesterday a further 900 people had also notified Revenue that they intended making a declaration and as the last minute rush gets underway to comply with tonight’s deadline, takings are likely to grow.

The amnesty requires defaulters who come forward in time to pay the tax and interest due on their previously undeclared money but allows them to escape the hefty additional 75% penalty fee normally imposed, as well as avoiding the embarrassment of inclusion in Revenue’s public defaulters’ lists and a possible criminal prosecution in serious cases.

It only applies, however, to people with €100,000 or more of “hot money” on deposit in banks and building societies. Revenue spokesman, Dave Coleman, said they were not out to scare people with legitimate savings but were looking for those who had tried to conceal windfalls from inheritances, the sale of assets or other income by putting it on deposit.

“It’s the source of the income that’s important. There are people with money on which they should have paid, for example, gift tax or capital gains tax but instead have been trying to hide it in deposit accounts. Those are the people getting a chance to make a declaration and pay up.”

The voluntary disclosure scheme was introduced in conjunction with a new legal obligation on banks, building societies and post offices to automatically supply Revenue with details of any customer who has a deposit account on which interest of €635 or more has been paid in a given year.

Depending on interest rates, account holders would need to have roughly €15,000 on deposit to earn that level of interest so small-scale savers are not affected by the arrangement.

The obligation applies retrospectively to deposits that existed from 2005 and later this year it will be extended to credit unions and other financial institutions. Mr Coleman said it would make it much easier for Revenue to spot suspicious deposits in the future.

He said Revenue was not planning any further voluntary disclosure schemes of this nature so anyone with substantial undeclared sums under €100,000 on deposit should not presume they would get also get a chance to avoid harsh penalties.