National Irish Bank (NIB) faces a €64 million bill after an inquiry found it had facilitated tax dodging and engaged in widespread overcharging over a long period of time, the High Court heard yesterday.
Mr Justice Kelly said yesterday that a six-year inquiry by High Court-appointed inspectors, Mr John Blayney SC and Mr Tom Grace, found NIB used bogus non-resident accounts and opened accounts in fictitious names to facilitate tax evasion. It also found that the bank imposed "improper" fees on its customers.
The judge said the report found these practices were widespread throughout the bank's branches and carried on for a long period of time. He described the findings as "very serious" and of "the utmost gravity". The Office of the Director of Corporate Enforcement will publish the report next Friday.
Mr Justice Kelly said the bank had apologised to the court and it said it had put in a series of measures to tackle the problems that the inspectors identified, that would cost it an estimated €64 million.
The High Court appointed the inspectors following an application in 1998 by the Minister for Enterprise, Trade and Employment, Ms Harney. They were instructed to investigate the sale of unauthorised offshore investment products, overcharging and to establish if the bank was facilitating tax evasion.
It emerged yesterday that the inspectors' report found more than a dozen senior NIB personnel had adverse findings made against them. Former chief executive Mr Barry Seymour and former head of finance Mr Patrick Byrne are among these.
The inspectors have concluded that bogus non-resident and fictitiously named accounts were opened and maintained in the bank's branches, enabling customers to evade tax, that offshore investments were provided for funds not declared to the Revenue and that there was improper charging of interest and fees.
In a statement last night, NIB said it had been working for more than six years to "address the issues which gave rise to the report".