Revenue reveals huge tax evasion

THE massive scale of tax evasion in the country was revealed last night when it emerged that 70,000 individuals kept money in bogus non-resident accounts.

The Revenue Commissioners yesterday said some 40,000 new names had been identified from the information supplied by the financial institutions under High Court orders.

The disclosure more than doubles the number of people previously thought to have held bogus non resident accounts.

It also shows how widespread tax evasion was in the 1980s and 1990s, rather than being concentrated in the hands of wealthy Ansbacher account holders.

The number of bogus account holders is also more than five times the original Revenue estimate put forward several years ago.

The authorities have already started sending letters by registered post to the 40,000 individuals linked to the new accounts which instruct them to urgently contact the Revenue.

All account holders will be told to make a payment of underpaid tax, interest and penalties before March 27 this year if they wish to avoid the prospect of being prosecuted.

It is likely the fresh trawl will lead to tens of millions of euro being paid up over the coming months.

A spokesman for the Revenue last night said: “We said we’d devote resources to this investigation and we’re prepared to see it through to the end. Anyone who doesn’t respond will be investigated with a view to prosecution.”

The names of all cases where the settlement exceeds 12,700 will be published.

Yesterday’s development brings to 35,000 the number of non-resident account holders identified from information secured under High Court orders.

Almost 70,000 names are linked to these accounts. An earlier Revenue investigation tracked down 30,000 individuals linked to the bogus accounts who were given until last December to pay back tax, interest and penalties.

This resulted in payments of €100 million to the taxman.

All told, this means the State has recouped more than €320 million in total from bogus account holders, including those who paid under the voluntary disclosure scheme which expired in November 2001.

Revenue officers, meanwhile, are to begin investigating account holders who have failed to co-operate with its recent trawl.

A spokesman was unable to say last night how many had people had faced the possibility of prosecution. This probe will continue on a phased basis throughout this year, according to the Revenue.

Some individuals have argued that they opened the accounts on the advice of bank managers and finance professionals and now face losing their savings.

Recent investigations show the deposits in these bogus accounts vary dramatically in size.

Under the voluntary disclosure scheme, the largest depositor was trying to hide more than €7 million from the taxman, while more than 60 individuals had accounts around the €1m mark.