IIB freezes cash over Ansbacher

Some deposit-holders with money in the Ansbacher deposits have had their accounts here frozen by the Irish Intercontinental Bank (IIB), pending clarification on any liabilities for Deposit Interest Retention Tax (DIRT) which might exist. It is not known how much money is at issue. The bulk of the funds in the deposits were withdrawn early last year.

Mr Justice McCracken, in his report, found that money in the accounts belonged to Irish residents. As far as the bank was concerned, however, the money was deposited by banks and companies based in the Cayman Islands. The bank now wants to establish whether the accounts are subject to DIRT, before it releases any funds that still remain in the accounts.

The bank may not be able to establish liability for DIRT until it establishes the identity of the people who owned the money held in the accounts and, in that way, whether they were Irish residents or not. The bulk of the money held in the accounts was deposited there by Ansbacher Cayman Ltd, the Cayman Islands bank. The bank is highly unlikely to disclose the identity of account-holders without their permission.

Other funds held in the deposits were in accounts under the name of Hamilton Ross Ltd, a company controlled by the late Mr John Furze. Money belonging to the former Taoiseach, Mr Charles Haughey, was held in these accounts at one stage. It is not known if the former Taoiseach still has funds deposited in these or related accounts.

It is understood that some of the money held may belong to the estate of the late Mr Furze and is held in the Hamilton Ross accounts. The bank is seeking information about the identity of former account-holders with Hamilton Ross, before it releases the funds that remain in the deposits. However, the former deposit-holders may not wish to disclose the information to the bank.

The bulk of the money held in the so-called Ansbacher deposits was moved elsewhere shortly after the Dunnes Payments to Politicians Tribunal began public hearings in April, 1997.

DIRT is held by banks and passed over to the Revenue Commissioners in lump sums. It is normally collected at the standard rate of tax, which at the moment is 26 per cent. The tax was introduced in the mid-1980s. The monies collected by the bank are paid to Revenue in lump sums so that the amount held in each depositor's account is not revealed.