Bogus accountholders seek Dail committee hearing

A group representing former holders of bogus non-resident accounts who claim they were misled by banks into opening the accounts will request an appearance before the Dáil Committee of Public Accounts (PAC).

Yesterday, Mr Conor O'Mahony, spokesman for the reaction group representing bogus non-resident accountholders, held an informal meeting with the PAC chairman, Mr John Perry TD, and vice-chairman, Mr John McGuinness TD, to discuss the potential culpability of the banks in relation to the evasion of Deposit Interest Retention Tax (DIRT) in bogus non-resident accounts.

Mr O'Mahony will make a formal request to appear before the committee as part of its original probe into DIRT evasion.

It is thought that the PAC will accept Mr O'Mahony's request to submit a range of sample cases where the reaction group believes financial institutions advised its customers to open bogus non-resident accounts without informing them of their illegality.

Financial institutions may be recalled to the PAC in order to explain their advice policies and banking arrangements for non-resident accounts.

Approximately 80,000 people associated with more than 40,000 suspect accounts have been investigated by the Revenue Commissioners since last year. Thousands who did not make voluntary settlements have been "named and shamed" in the Government publication Iris Oifigiúil.

In some cases, bogus non-resident accountholders paid three to four times the amount of tax owed because of interest and penalties.

Mr O'Mahony, a former assistant manager with AIB in Co Kerry, said many of the accountholders were guilty, but others had genuinely believed they were doing nothing wrong and were encouraged to open accounts by the banks.

A number of former bogus non-resident accountholders have initiated legal proceedings against AIB.