The amount of money being collected by the Revenue Commissioners from tax evaders continues to climb and climb. Some €700 million has now been collected on foot of the investigation into bogus non-resident accounts and into tax evasion through National Irish Bank schemes and the infamous Ansbacher accounts. And there is more to come.
Presenting yesterday's annual report, the Revenue said that 281 people who had money hidden in offshore trusts - mostly with Bank of Ireland in Jersey - had now come forward.
The extra revenue will be welcome for the increasingly hard-pressed Exchequer. More importantly, however, the progress made by the Revenue Commissioners in dealing with past tax evasion should start to restore confidence in the equity of our tax system. The string of revelations in recent years had led ordinary compliant taxpayers to believe - with considerable justification - that there had been one law for them and another for the high-rollers who hid money offshore.
The scale of past tax evasion now being brought to light is quite extraordinary and reflects poorly not only on those evading tax but also on the financial institutions which facilitated them. The banks and building societies may claim that the tax affairs of their customers are none of their business. However, in reality, it is clear that many colluded with customers to hide money offshore, or in bogus non-resident accounts in the State.
Most of the institutions have already settled with the Revenue in relation to the bogus non-resident accounts, but they may still have awkward questions to answer in relation to offshore accounts. The Bank of Ireland is now in the spotlight as more than 250 of its Jersey account holders come forward. However they are likely to be joined in the months ahead by people holding accounts in other offshore vehicles owned by Irish institutions and promoted for years as offering "full confidentiality".
The Revenue still has work to do to restore full confidence in the tax system. Clearly its examination of offshore vehicles is far from complete, and will be helped by the gradually increasing co-operation between tax authorities in different countries. Revenue audits last year yielded €350 million, indicating that there is still a way to go in securing adequate voluntary tax compliance. And prosecuting people for tax evasion remains a slow process, with three convictions obtained last year and a further four so far this year.
The tax burden here is not high by international comparison - either for individuals or companies - and as the Exchequer comes under pressure due to a slowing economy, it is important that all taxes due are paid. If this does not happen, there will be less money for the provision of public service and investment projects. The goal must be to create a tax system where compliance is the norm and where serious evasion is heavily punished. The Revenue is making good progress - but it still has some way to go.