Revenue pursues 30,000 bogus account holders

The Revenue Commissioners is pursuing 30,000 individuals it believes have failed to declare monies held in bogus non-resident bank accounts, writes Siobhán Creaton, Finance Correspondent

In the next few days these individuals will receive a letter from the Revenue demanding details of any underpaid tax that may be due on these funds. This trawl is a result of information handed to the Revenue by the State's financial institutions.

Through these details, the Revenue Commissioners estimates that it has identified 13,500 non-resident accounts belonging to individuals with an address in the Republic. In many instances, more than one name is associated with an account with the overall number of people affected estimated at 30,000.

They will receive an inquiry letter that will require them to make a full payment of taxes owed plus interest and penalties by December 17th. Where settlements amount to more than €12,700, the names of the account holders will be published in the Iris Oifigúil, together with details of their total tax liability.

In a statement issued yesterday, the Revenue said several of these cases are being examined to determine whether the account holders should face prosecution.

These individuals did not avail of the special arrangements to encourage account holders to make a voluntary disclosure of their tax liabilities to the Revenue. This included reduced interest and penalties.

Since that deadline expired in November 2000, the Revenue has collected €21 million in settlements and payments on account from taxpayers who did not avail of the voluntary disclosure scheme.

Those who have still not contacted Revenue regarding these accounts could be facing substantial settlements as interest will be applied over the full period the tax has been owing. Some accounts could have been opened up to 30 years ago with the punitive interest rates that applied at that time being levied on any monies due.

Revenue chairman Mr Frank Daly yesterday issued a stern warning to individuals who held bogus non-resident accounts and who have still not come forward.

"The sooner people face up to this the better. The interest clock is ticking and if bogus account holders foolishly choose to keep their heads down instead of responding within the 60-day period, they face the very real prospect of investigation with a view to prosecution."

He added that the Revenue would continue to seek information from Irish banks and building societies through High Court orders over the next few months.

"While it is clear that we are facing a major programme of investigations we are making significant progress and we will be sticking with this for as long as it takes," he warned.

The investigation of bogus non-resident accounts has brought in more than €227 million to the Revenue. Financial institutions paid more than €200 million in unpaid tax, interest and penalties.

A group calling itself the Reaction Group for Non-Resident Account Holders said people were completely exposed and unsupported after the banks decided to inform the Revenue of their account details. "We feel the banks have been less than supportive of their customers and this latest action by Revenue is going to heighten people's anxieties," a statement issued on behalf of the Cork-based group said.