This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




Ireland: Public Accounts Committee Report Asks For More Penalties For Tax Evaders

Robert Lee, Tax-news.com, London

16 January 2001

A report is due next month in which recommendations are made by the sub-committee of the Public Accounts Committee (PAC) to strengthen penalties in tax evasion cases.

The committee recently concluded an investigation into the DIRT scandal in Ireland's banks and other financial institutions. Out of a total sum of I£173 million finally paid by the offending institutions, the disappointed committee could only impose penalties amounting to a mere I£3 million.

In the Irish press yesterday, PAC chairman Jim Mitchell said committee members felt a "deep dissatisfaction" at the the considerably low amount of penalties they could enforce upon the financial institutions. He stated: 'There is an enormous breach of trust involved in the way the financial institutions were complicit in tax evasion for so long. There must be much more severe penalties put in place to cover similar situations for the future.'

The committee has also indicated that it may call for an end to the six-year statute of limitations for such offences by financial institutions which acted to the advantage of many of the institutions, as Mr Mitchell explains: 'most of the tax-evasion took place before 1994.'

A further issue raised in the report is the conflict in the six year statute whereby the statute applies to the PAC but not to the Revenue Commissioners who can investigate as far back as they wish on private accounts. 'We feel there is a contradiction between these two sections of the same legislation which needs to be sorted out,' commented Mr Mitchell.

It is also expected that the committee will recommend it should deal with some appeal cases in public and will ask for a more 'transparent' process when appointing employees with the Oireachtas Finance Committee vetting the candidates. Mr Mitchell was adamant that there would be 'no half-measures' with regard to the proposed employment of an Oireachtas Commissioner to monitor finances in the Dail and Seanad.

.

 

 






Write a comment