Tax certs may be required for State boards

The Government is considering new regulations to require all prospective members of State boards to provide tax clearance certificates before they can be appointed.

At present, prospective members of State boards are required to provide information about any potential conflict of interest in terms of business or financial interests.

There is no requirement to provide any details about their personal tax affairs, although at least one Government Department seeks personal assurances about their tax affairs before they are appointed to a board.

However, following an initiative by the Minister for Marine and Communications, Mr Dermot Ahern, a working group within the Department of Finance is examining the introduction of new regulations to require written confirmation that appointees have their tax affairs in order.

Mr Ahern has introduced an annual seminar on corporate governance and ethics for boards under his remit. He had also intended introducing tax certificate requirements in relation to all appointments under the control of his Department.

He has delayed this following proposals late last year from the Minister for Finance, Mr McCreevy, to tighten the current regulations contained in the Government's code of practice for State bodies. The proposals under examination include the requirement of board members to produce a tax clearance certificate or a written declaration that they are tax compliant.

Yesterday, a spokesman for Mr Ahern said the Minister had taken the initiative because of a concern that boards were not being subjected to the same rigorous criteria as contractors working for State bodies.

"Dermot Ahern is of the view that if we ask plumbers and electricians who do work for State bodies to provide tax clearance certificates, it is the least we can expect from board members," he said.

The initiative comes amid increasing concerns about the potential embarrassment of revelations about the private financial and business affairs of members of public bodies, who are appointed by the Government.

Last Saturday, former AIB chief executive Mr Tom Mulcahy resigned from his position as chairman of Aer Lingus. He had been named as one of five AIB executives who had "tax issues" relating to periods up to 1998.

A Department of Transport spokeswoman said Mr Mulcahy, who was appointed in the autumn of 2001, was not required to make any declaration regarding his tax status.

Since June 2002, all prospective board members are asked whether they are tax compliant before their appointment to boards under the remit of the Department, she said.