The Revenue Commissioners is to pursue thousands more tax defaulters as part of its investigation into bogus non-resident accounts, it has emerged, after the longest ever list of tax settlements was published yesterday in Iris Oifigiúil. Colm Keena reports.
A huge increase in the level of published settlements is expected to result from the failure of thousands of people to voluntarily disclose the existence of bogus accounts. Approximately 80,000 people associated with 41,000 suspect accounts are currently under investigation.
Yesterday's list, which involved total settlements of €28.6 million, showed that many defaulters are being forced to pay three to four times the amount of tax owed because of interest and penalties.
Under the Revenue's voluntary disclosure scheme for bogus non-resident account holders, which ended in November 2001, interest and penalties were capped at 100 per cent of the tax liability. People who came forward were also assured that their names would not be published. The Revenue chairman, Mr Frank Daly, warned at the time of the consequences for those who did not come forward.
The settlements on the list published yesterday were topped by a Waterford carpet business and its proprietor who between them made a €4.9 million tax settlement. The business, J. M. Carpets Ltd, Mayor's Walk, Waterford, and its proprietor, Mr John Murphy (53), Bishopscourt, Grantstown, Waterford, both had bogus non-resident accounts. Neither account was declared as part of the scheme, and the failure to do so cost more than €1.5 million.
If Mr Murphy had availed of the voluntary disclosure scheme, he and his company would have saved that amount. Under the published settlement, the total tax due was €1.68 million and the total amount of interest and penalties levied was €3.2 million. Mr Murphy was not at his place of work yesterday, according to a member of staff who answered the phone. It is understood the business is still in operation.
The defaulters list published yesterday named 285 people or companies. The total amount of tax, interest and penalties involved was €28.63 million, by far the largest total for a quarterly list. The majority of the names listed, 230, arose from bogus non-resident account inquiries.
New powers given to the Revenue in 1999 allow it to get access to bank records to an extent which was not previously the case. Those who decided not to avail of the voluntary disclosure scheme may have failed to take this into account.
Farmers featured strongly on the list published yesterday, comprising 82 of the 285 names. Company directors, landlords and smaller businesses also featured.
The Revenue's inquiry into bogus non-resident accounts has to date yielded more than €600 million, with €220 million of this coming from the banks, €227 million from voluntary disclosures, and the difference, approximately €150 million, coming from people who failed to avail of the voluntary disclosure scheme.