Taoiseach Enda Kenny has defended the response of the Revenue Commissioners to the dealings of HSBC bank in Geneva linked to tax evasion and criminal activity by its customers.
Mr Kenny said the State tax collector had undertaken 33 investigations with 20 settlements worth €4.55 million with three prosecutions and one case under criminal investigation.
“A further €174,444 has been received to date as payment on account in two investigations which are ongoing,” the Taoiseach said.
He told Sinn Féin leader Gerry Adams that Revenue "took relevant action in any case where sufficient admissible evidence was available to bring a criminal prosecution in respect of any Revenue offences".
Mr Kenny said during Dáil Leaders’ Questions that the State tax collector acted on data received from French authorities in June 2010 and “where required, the Revenue Commissioners, as is their responsibility, initiated an investigation”.
So far it had undertaken an assessment and evaluation process “which indicated that no further liability arose in the State in a number of cases and that further investigation would be required in a number of other cases”.
Adviser
Mr Adams criticised the appointment of Michael Geoghegan, chief executive of HSBC when its Swiss operations “facilitated tax evasion”, as an adviser on the operation of Nama.
But Mr Kenny said Mr Geoghegan did not advise on taxation issues “but in respect of the remuneration of senior executives and other issues on the strategy proposed by Nama”.
Irish links
The Sinn Féin leader highlighted reports that €3.1 billion was linked to 350 clients with Irish associations, “yet only 20 Irish account holders made settlements, worth just over €4.5 million”.
He added that there were “no early morning arrests” unlike for water charges activists.
The Louth TD said the bank faced criminal prosecution in a number of countries “but not in Ireland which is the smallest, best country in the world in which to avoid tax if one is wealthy”. He asked why the Revenue had not pursued a case against HSBC for facilitating tax evasion by Irish customers.
But Mr Kenny said “the existence of a foreign bank account is not evidence in itself of tax evasion and clearly no liability will arise where relevant tax is paid on funds or any interest accruing on them”.
The Sinn Féin leader said, however, that the activities of some of the banks and a small wealthy elite caused the financial crash in Ireland and €62 billion in loans was in the hands of 190 individuals, while half of the Anglo Irish Bank loan book was held by 20 individuals.
