Bogus non-resident accounts

Case study 1A customer who held eight bogus non-resident accounts for several years ultimately had to pay a tax bill of €900,000 to the Revenue Commissioners in arrears and penalties.

She complained that she was told by an official at her bank that she would have "nothing to worry about" when she asked if she should avail of the tax amnesty and "not to bother" with it.

After his investigation, the ombudsman concluded that it was highly unlikely that the bank gave any such advice in relation to the eight bogus accounts that the complainant held.

He ruled that even if the bank had actively assisted and facilitated the tax evasion, public policy would preclude him from finding that the bank owed any duty of care to the complainant to guide her in her decision as to whether she should or shouldn't avail of the amnesty, as not availing of the amnesty was clearly illegal.

The ombudsman found that there was no sustainable negligent advice or failure in duty of care and did not uphold the complaint.