Revenue `got help from politicians'

Politicians sometimes gave information to the Revenue Commissioners which helped investigations, according to a senior tax official.

Mr Paddy O Donghaile, director of prosecution policy, told the DIRT inquiry: "We've often got help from elected representatives."

He said he had the "impression" that there were wider economic considerations than just tax evasion, but he could not say where he got that impression. No office holder had ever leaned on him directly or indirectly to go easy on implementing the tax law.

The issue was raised by Mr Pat Rabbitte TD, who asked if he had ever received representations from politicians to "lay off" or go "softly softly" in investigations.

Mr Jim Mitchell, the chairman of the committee, asked if it had ever been intimated to him by any elected politician that "you would either lay off or not do your duty".

Mr O Donghaile, said: "Well, that's a very big question." Mr Mitchell: "Well, I'll give you a lot of time to answer it."

Mr O Donghaile said some taxpayers would go to their elected representative to make representations on their behalf. These were generally that the Revenue were being a "little too vigorous in the use of our powers and that we should deal fairly with the individual concerned".

He certainly got those representations but he had no recollection of getting any representation such as "don't use Section such and such on my constituents".

When he pointed out that politicians had often helped the Revenue, Mr Mitchell put it to him that "elected representatives reported to you certain facts that they became aware of that were helpful to your inquiries?"

"Once or twice," Mr O Donghaile, replied.

He acknowledged that he was aware that there were "wider considerations" than just tax evasion.

Pressed by Mr Mitchell as to what those issues were, he agreed they were concerns such as the "flight of capital" out of the State.