The ministers for finance who held office from 1986 to 1998 do not have detailed recollections of how the issue of bogus non-resident accounts was handled in their time, it emerged yesterday.
The Comptroller and Auditor General's report shows that the issue of tax evasion through the use of such accounts arose regularly in the Department of Finance throughout this period. It shows that the Department accepted, since 1984 or earlier, that such accounts were being used for large-scale tax evasion.
The report indicates a reluctance to deal with the matter within the Department due to a fear that effective measures would lead to a flight of capital.
The Department of Finance declined to comment on the Comptroller and Auditor General's report yesterday, saying the secretary-general of the Department was expected to give evidence to the sub-committee inquiring into the matter. They did not want to do anything in advance that might be seen to prejudice this inquiry, a spokeswoman said.
Mr Alan Dukes, who held the post until February 1986, said yesterday he could recall that the question was an issue during his time in the Department, and that there was "head-scratching" about what to do.
He said he remembered introducing a provision to the Finance Bill in 1986 to try to curb the abuse of these accounts. "I can't remember exactly what we provided," he said yesterday.
In fact in his budget speech of January 29th, 1986, Mr Dukes said he would deal with bogus non-resident accounts through introducing legislation in the Finance Bill. This would require holders of non-resident accounts to make a declaration stating that they were genuine non-residents.
Mr Dukes's successor as minister for finance, Mr John Bruton, steered this provision through in the Finance Bill, although it was later modified. A spokesman for Mr Bruton confirmed yesterday that he remembered taking steps such as this, but could not recall the details.
Mr Albert Reynolds, who was minister for finance from November 1988 to November 1991, said yesterday he did not believe this issue was brought to his attention.
The Taoiseach, Mr Ahern, who held the post from November 1991 to December 1994, was not available for comment yesterday as he was in London meeting the British Prime Minister.