Revenue nets €697m in tax-evasion inquiries

The Revenue Commissioners netted €697 million in special investigations into tax evasion last year.

According to the Revenue’s annual report for 2004, €585 million of this total came from offshore-related investigations.

The Revenue collected a total of €35.7 billion in tax receipts (€2.2 billion ahead of the Budget estimate and €3.5 billion ahead of the 2003 figure).

Speaking at the publication of the report, Revenue chairman Frank Daly said he expected 2005 to be a record year for tax-evasion prosecutions.

Mr Daly said although only one conviction for serious tax evasion was obtained in 2004, a further six cases were awaiting the issue of summonses, and the DPP was considering another seven cases.

He said: "While these figures are low the reality is that tax prosecutions for serious evasion are long drawn out and are fought every step of the way.

"We recognise that prosecution is an area where there is a public expectation that we will do more – the public can be assured that we intend to deliver on that expectation."

Mr Daly said some 10,000 people have come forward in the voluntary phase of its investigation into those who put undeclared amounts into life-assurance products .

He said: "It should also be clear that people who invested legitimate funds in these legitimate products have nothing worry about."

Mr Daly’s comments have not drowned out the calls for more stringent action to be taken against tax defaulters.

Labour Party whip Emmet Stagg today criticised the governments for the "stark contrast contrast between the way in which the state  views  tax  fraud  on  the  one hand and social welfare fraud on the other.

"The  report  shows  that there have been just four prosecutions for serious  tax  evasion  so far in 2005, with six cases in the court process.

"However, we know from replies to parliamentary questions that in the period between 1999 up to the end of 2004, prosecutions were initiated against just  18  tax offenders, with just three of those convicted actually having to  serve  prison  sentences.

"In the same period the Revenue Commissioners made  87,000 settlements with tax defaulters," Mr Stagg added.

"On the other hand according to the Department of Social and Family Affairs report  for  2003  (the  latest year for which figures are available) there were  more  than  200 cases of social welfare fraud concluded in the courts during 2003 and as a result 11 people were jailed and a further 17 received suspended sentences."