In an unprecedented move, the PAC, chaired by Jim Mitchell, will summon the country's two top law officers, the DPP James Hamilton and Attorney General Michael McDowell, to public hearings.These will examine the failure of the Revenue Commissioners to obtain convictions with jail sentences for serious tax offenders. Mr Mitchell says the tax culture in Ireland must change: 'Jailing simply has to be more a feature of serious revenue offences if there is to be a real deterrent.'

The planned hearings will mark a new phase of the DIRT inquiry aimed at identifying the kind of legal and other changes necessary to ensure that fundamental changes are introduced in the tax collection and enforcement system. A detailed report by a steering committee on the future of the Revenue Commissioners has just been published, which proposes some key changes including a new Revenue Act to update and modernise the existing system; a new prosecution division in the Revenue Commissioners with sufficient audit, legal and intelligence back-up and a new management structure for the Revenue Commissioners including, for the first time, the appointment of three outside Commissioners to a new Governing Board.

The report said the major obstacle to mounting successful prosecutions was "securing the very detailed evidence and onerous proofs required" to bring about a conviction. While few difficulties are encountered with prosecuting minor revenue offences - such as failure to file proper tax returns - experience has shown Revenue officials face far more fundamental problems in bringing more serious charges. The report states: 'The issues here go beyond Revenue prosecutions and are common features of the prosecution of "white collar" crimes. Essentially, evidence once obtained must be proved in order to be introduced into a criminal trial.'

PAC Chairman Mitchell says the existing tax culture in Ireland is one where the Revenue are willing reach financial settlements with major offenders rather than pursue convictions and jail sentences and this has to change. Finance Minister Charlie McCreevy has pledge to examine what recommendations come from the PAC on further changes in the Revenue Commissioners and tax laws and he will then make proposals to the government.