ONLY ONE person has been jailed for serious tax evasion since 2003, the chairwoman of the Revenue Commissioners said yesterday.
Josephine Feehily told the Dáil Public Accounts Committee (PAC) yesterday that 2008 was the “most successful year ever in terms of criminal convictions”, with 19 cases brought to court and 15 convictions. But of these 15 successful prosecutions only one person went to jail, Ms Feehily said.
“He received a three-year sentence, with 2½ years suspended,” she added.
The individual, who started his sentence in November, faced various charges for failing to make proper VAT returns in relation to two catering businesses. He was also forced to pay €246,553 in tax, interest and penalties.
Ms Feehily said that a record fine of €960,000 had also been issued to an engineering company last year and noted that her job was merely to “get good cases into court”. She said those who had been convicted but not jailed had received substantial financial penalties.
In 2007, there were nine convictions for serious tax evasion, and suspended custodial sentences were imposed in four cases.
Asked by PAC chairman Bernard Allen of Fine Gael if she was frustrated at the sentencing policy in relation to serious tax evasion, Ms Feehily said: “The penalties and law are strong. It isn’t for me to comment on sentencing.
“I take the view that it is not for me to be frustrated or not frustrated.”
Mr Allen replied: “I’d be frustrated if I was in your position. I’d be very angry if I was in your shoes.”
Labour TD Róisín Shortall said there was “no significant deterrent in effect if people are not ending up behind bars for crimes like this”. She said if we had “an Irish Lester Piggott”, it would send out a clear message to people evading tax. The British champion jockey was sent to jail for three years in 1987 for tax fraud.
“There’s a fair aul’ bet that if you cheat in your tax you get away with it,” Ms Shortall added.
Questioned on the contents of the 2007 report of the Comptroller and Auditor General published in September 2008, Ms Feehily said only two people out of 76 had been prosecuted after they were found to have incorrectly claimed they were exempt from certain tax liabilities under the 1993 tax amnesty.
All 76 individuals had the benefits of the 1993 scheme withdrawn. “We prosecuted two where we felt we could make a successful prosecution,” Ms Feehily added. She said due to the time that had elapsed since the amnesty, it made prosecutions more difficult.
Ms Feehily told the committee that the “cash economy” was of the greatest concern to the Revenue Commissioners at the moment and that their examinations crossed “all sectors, from tradespeople up to barristers”.
She said risk-analysis computer software was being used to monitor self-assessed taxpayers for items such as car and property purchases using VRT and stamp duty information. The searches looked for “mismatches between declared income and lifestyle indicators”.
The records of 800,000 self-assessed taxpayers were analysed three times a year for any anomalies. Some 340,000 compliance visits and 13,500 audits were carried out in 2008.
She said an examination of 47 barristers and solicitors in Dublin 4 had yielded €838,000 in tax, interest and penalties in 2007. She said self-assessment was “best practice worldwide”.
