DIRT inquiry to question Revenue head

The DIRT inquiry sub-committee has said it will question the chairman of the Revenue Commissioners on the NIB issue at its resumed hearing next week.

The decision follows NIB's confirmation that it plans to offer compensation to customers hit with large tax bills after buying offshore investment products they thought were tax free.

In a statement yesterday, the Office of the Chairman of the Committee on Public Accounts said: "While next week's hearings are mostly to address revenue organisation and structures together with reforms of the Oireachtas, the sub-committee will seek a statement from the chairman on the NIB issues and will question him on the matter."

Fine Gael finance spokesman Mr Michael Noonan said the key issue resulting from NIB's plans to offer compensation to customers was that the outstanding tax liability would be paid and the public interest would be satisfied.

"The public is not being short-changed," he said.

Mr Noonan described the bank's decision as a "judicious move".

"One can understand the strategy. The bank doesn't want what could turn out to be years of litigation and the bad publicity that would accompany it," he said.

The bank said it had received a number of customer complaints and faced legal claims resulting from the sale of offshore insurance products to Irish residents.

The issues are currently the subject of an investigation by inspectors appointed by the High Court.