The culture of tax evasion is not unique to Ireland. Dodging tax is commonplace in the United Kingdom, it is very widely practised in Italy and in France it is something akin to a national sport. In Ireland there was never any shame about cheating tax and, rather then conceal their offence, many defaulters felt safe enough to boast about it.
The quarterly list of defaulters issued yesterday by the Revenue Commissioners shows the culture persists. It is the largest list of its kind since the naming of the Ansbacher account holders. The list shows that between April and June of this year there were settlements concerning 373 bogus non-resident accounts and 78 of these settlements were for over €100,000. In all, there are 419 names on the list and the total tax recouped came to €37 million. Two things are demonstrated clearly. Tax evasion on a large scale has continued and, thankfully, the Revenue Commissioners are now using their powers to do something about it.
The Revenue Commissioners have some distance to go before they restore the credibility of the tax system fully. Legislation put in place in 1986 concerning bogus non-resident accounts was not used until 12 years later. Successive Ministers for Finance put little or no emphasis on chasing tax cheats. Even the Central Bank seemed resigned to the status quo.
And would it be any different today if the public had not been made aware of the DIRT scandal, the Ansbacher arrangements and the NIB offshore funds? The Oireachtas and the Government may claim credit for the new powers given to the Revenue in the Finance Act of 1999, but it was public opinion which gave birth to the legislation and not political concern.
Then there is the issue of penalties. Tax evasion is theft. However, if a bank official, year-in-year-out , steals money and is caught, the likelihood of the offender receiving a custodial sentence is quite high. However a tax cheat can steal for years, spurn offers of an amnesty and when caught will suffer nothing more than a financial penalty which usually will be easily afforded. Is it any wonder that individuals are prepared to give the Revenue false declarations, knowing that only money and not their liberty is being put at risk?
The revelation that the Fianna Fáil Deputy, Mr Michael Collins, is amongst the list of tax defaulters with an above-average settlement of €130,602 is a matter of considerable concern. Mr Collins issued a statement expressing his regret, saying he is in possession of a tax clearance certificate. Mr Collins, on being re-elected last year, presumably as is required, swore the statutory declaration of tax compliance and furnished a completely up-to-date tax clearance certificate. Yet, the settlement just agreed was not concerned with very recent income but with income received six or more years ago. The public are entitled to expect that their elected representatives adhere to the highest ethical standards.