Deadline passes for offshore account holders

Many offshore account holders have not be able to settle their tax bills with the Revenue Commissioners by today’s deadline, the Institute of Taxation confirmed.

President Frank Hussey said accountants across the country had struggled to complete the mass of paperwork in time.

“In cases where people don’t have the information from the banks, there’s absolutely nothing you can do,” he said.

The Revenue Commissioners had already extended the deadline from the previous date of May 28. A spokesman said today there would be no further extensions.

Around 15,000 people are believed to have come forward so far and the total sum raised may be between €500m and €1bn.

The offshore account holders who did not disclose and pay their tax liability before today’s deadline will not be able to avail of three specific advantages: the cap on penalties of 10%, the non-publication of names and the agreement not to prosecute for tax evasion.

The Revenue Commissioners chairman, Frank, Daly has said the typical tax settlement will be larger than those paid over by the holders of bogus non-resident accounts, who paid around €750 to the state in total.

Mr Hussey, who is a senior partner with LHM Accountants in Dublin, said there were offshore account holders with tax liabilities ranging from €27 to €1.5m.

“I’ve no indication yet as to what the Revenue have taken in. But generally 80% of the money comes from 20% (of the people) and that will certainly apply here,” he said.

Mr Hussey said it was fair for people to question why more extensions should be given to tax evaders but said accountants were caught between a rock and a hard place.

“The Revenue has set the deadlines and the onus is back on the practitioners. If you try and do complicated calculations in a hurry, you will make mistakes.”

There will be no mitigation of penalties for people who had offshore accounts prior to April 1991 because they had the opportunity to avail of the 1993 tax amnesty introduced by the then Finance Minister Bertie Ahern.