The millions collected last year by the Revenue Commissioners from various classes of tax cheat is not something for the compliant tax payer to cheer about. They illustrate - if illustration was needed - the depth to which a culture of tax evasion has taken root in this society. Hopefully this problem is now on the decline thanks to lower tax rates - which have reduced the incentive to evade tax - and more effective enforcement.
The Revenue is understandably proud of what it has achieved and has promised more. But the figures trumpeted yesterday also serve as a reminder that the organisation's record over most of the last decade was not all that it could have been.
It is worth remembering that the Revenue only started to try and recover most of the unpaid tax detailed yesterday after its existence was highlighted elsewhere. Most notable is the €447 million collected to date in unpaid DIRT, which only came to light during an Oireachtas inquiry. The same holds for the €37.22 million collected from the NIB investigation and the €17.25 million yielded to date by Ansbacher clients. In their defence the Revenue have argued that it was only after these scandals broke that they got the powers they needed to do their job. Yesterday the new chairman of the Revenue Commissioners, Mr Frank Daly, gave thanks to the Minister for Finance for giving the body more powers in recent finance bills. He pronounced himself satisfied with the extent of the powers that have now been granted.
Given the expected publication next week of the report of the High Court inspectors into Ansbacher (Cayman) Ltd, it is comforting to know the Revenue now have all the powers they require. The report should prove fertile ground. However Mr Daly also took the time to throw a little cold water on those who are expecting to see the Revenue pursuing the Ansbacher account holders through the courts over coming months. He pointed out that some of the cases will stretch back over thirty years making prosecutions difficult. In addition the onus of proof required before the Revenue can obtain a conviction is very high. Let us hope that Mr Daly was just being realistic and is not preparing the ground for the sort of failure to follow through that has been characteristic of the Revenue's approach to this sort of issue in the past.