February 16, 2011
By Staff Reporter
“There will be no hiding place either at home or abroad for monies which have evaded tax,” commission chairman Frank Daly told a Waterford Chamber of Commerce meeting last week.
A series of huge tax scandals have led to criticism of the commissioners, but Daly emphasized his commitment to “clear up issues outstanding from the major legacy tax scams of the past.” He said suggestions that people should continue to hold out and not cooperate with the investigations was based on a myth that they would either give up or there would be another tax amnesty.
“Neither will happen; either would be a betrayal of the majority of taxpayers who pay their fair share,” he said. “It would be a betrayal of the businesses that are entitled to a level playing field, a betrayal of the citizens for whom tax revenue provides basis services and a huge blow to Revenue’s own credibility as an organization.
“Encouraging people to hold out is irresponsible because the consequences of holding out are serious for people. It is adding to their interest bill, it is adding to the penalties they will have to pay and it is increasing the possibility that they will face prosecution.”
Daly said that in the past the commissioners had been accused of “hitting the easy targets and shying away from tackling the difficult ones.”
But the tax scams would be cleared up “no matter how long it takes,” he said.
The commissioners have begun discussions with the tax authorities in the Isle of Man, Guernsey, Jersey and the Cayman islands on information exchange agreements. These agreements with tax-haven countries would not only facilitate exchange of bank information, but would provide access to information about the beneficial ownership of companies and trusts, according to Daly.
The agreements would “begin to close off the hiding places for money or funds on which tax has not been paid — and such hiding places are essential for successful large scale tax evasion.”
With changing international attitudes, Daly did not expect that other havens would spring up to take their place.
At home, he said, the commissioners have extensive powers and would use them to the full in tracking down bogus non-resident account holders.
“We can also expect that in the near future there will be far greater exchanges of information between the Central Bank, financial institutions and Revenue when the Financial Services Regulatory Bill becomes law,” Daly said.
“Several years ago people put money in bogus non-resident accounts in the belief it was forever hidden from Revenue. Now they find it is not. Those who put money offshore in the same belief must now face similar disillusionment.”