21,500 bogus non-resident accounts found

The Revenue has identified a further 21,500 bogus non-resident accounts and has written to the 40,000 individuals whose names are associated with them.

The letters, which will be sent by registered post, will arrive over the next few days and tell those who still have a tax liability to pay the tax, interest and penalties due by March 27th. The names of all cases where the total settlement with the Revenue is for more than €12,700 will be published in the tax defaulters list.

This campaign follows the targeting of 30,000 individuals last year, which resulted in the Revenue collecting €100 million by December 17th, 2002. In a statement issued yesterday, the Revenue indicated that further letters would be sent to individuals identified in connection with these accounts during this year.

A large number of payments made before the December deadline were for €100,000 with several individuals being forced to pay between €1 million and €6 million. The majority of money collected comprised hefty interest charges and penalties.

The Revenue has been receiving information from banks and building societies about non-resident accounts they held in the 1980s and 1990s, and the individuals who deposited funds in them. The information is being released on foot of High Court orders. So far, this process has linked close to 70,000 names with these accounts.

The individuals now being targeted could face a Revenue investigation or prosecution if they fail to settle their tax affairs by the March 27th deadline. A number of individuals who received letters last October have still not responded. The Revenue is looking again at these cases with a view to taking further action. Some had already been selected for immediate investigation with a view to prosecution, the Revenue said yesterday.

"Revenue officers will shortly commence visiting the remainder to decide if an investigation with a view to prosecution or the exercise of Revenue powers, including assessment, is the appropriate course of action to advance these cases," the statement said.

An amnesty, which offered accountholders reduced interest and penalties if they made full settlement by November 2001, raised €227 million for the Exchequer. In the following months, €19 million was collected, which was followed by €100 million in December.