Quigley Reiterates Warning To Irish Offshore Tax Cheats

by Jason Gorringe, Tax-news.com, London

14 June 2001

The Irish Revenue Commissioners chairman, Dermot Quigley, recently reiterated his warning to bogus non-resident account holders, and warned that after the November 15th deadline set last month by the revenue, the big guns would be out.

Last month, the Revenue revealed that individuals who voluntarily disclose their tax affairs before November will only have to pay the tax owing on any money hidden in bogus non-resident accounts, and up to that amount in interest and penalties. After the deadline, anyone discovered to have evaded tax will be forced to pay the full tax owing, plus full interest and penalties (which could be up to three times the tax due), and may face prosecution.Those who failed to avail themselves of the amnesty in 1993 will be able to take advantage of the latest government reprieve, although Mr Quigley told the Dail's Public Accounts Committee at the beginning of the week that those who do so will lose the amnesty benefits, and will have to pay full tax, including on the partial disclosure under the agreement.

The government's decision to encourage voluntary disclosure is seen as the most practical way to collect outstanding taxes without exhausting significant resources in the process, and Mr Quigley has admitted that even if the authorities knew the full extent of the tax evasion taking place in Ireland, it would be impossible to investigate every offender for prosecution. Therefore, he feels that investigations with a view to prosecution are best concentrated on those who choose not to take advantage of the November deadline.

The chairman has thus far declined to give a 'hard estimate' of what he expects the tax take from this initiative to be, explaining that interaction with the 1993 amnesty is a major complication. However, last month a working figure of around £700 million (£350 million in unpaid taxes, and £350 million in interest and penalties) was announced by Revenue officials. Mr Quigley has estimated that there are between 25,000 and 50,000 individuals with bogus non-resident accounts in Ireland.

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