A new amendment to the 1998 Finance Bill to increase the regulation of Irish registered non-resident (IRNR) companies has been tabled by Mr Pat Rabbitte of Democratic Left, who has also strongly criticised the Revenue Commissioners' implementation of existing rules. The Revenue Commissioners have strongly rejected Mr Rabbitte's claims. Mr Rabbitte's amendment to the Bill, the committee stage of which is to be taken today and tomorrow, seeks to extend the reporting requirements under section 58 of the 1995 Finance Act and to increase the penalties for non-compliance.

He has also said in a statement: 'Apparently the Revenue Commissioners have refused to apply section 58, saying it is not their job to police a law applying to companies that have no tax liability in this jurisdiction'.

But a spokeswoman for the Revenue said it wanted to rebut strongly what Mr Rabbitte had said. The Revenue chairman, Mr Cathal MacDomhnaill had responded to a letter from Mr Rabbitte yesterday, she said.

The Revenue contends that it has implemented the new rules to the best of its ability and writes to all newly-registered companies seeking details.

The Minister for Finance, Mr McCreevy, has said that new measures to tackle the IRNR problem will not be included in this year's Finance Bill. However, he has published 86 pages of new amendments for the committee stage, most on largely technical tax issues.

Mr McCreevy is also moving in the Bill to tackle complaints of those resident in the Republic but working in the North, who are subject to taxation in the North and to top up taxation in the Republic. They complain that they pay Republic level tax on Northern level salaries.

From April 6th this year, any income earned outside the State will be exempt from Irish tax once the foreign employment lasts at least 13 weeks and the employee returns to the State at least once a week.