The Revenue Commissioners have re-stated their commitment to act on the findings of the McCracken Tribunal and the various investigations into recent financial controversies, when they presented their annual report to the Minister for Finance, Mr McCreevy, yesterday.
Mr McCreevy welcomed the presentation, saying it would assist in re-gaining public confidence.
In their foreword to the Minister, they say that strategies on "tax evasion, black economy activity and avoidance" are now a priority after foreseeing the need to adopt "a tougher stance" which was outlined in their corporate plan, published in November, 1996.
"Revenue is actively pursuing all aspects of tax evasion arising from the McCracken Tribunal Report, as well as more recent disclosures, and is co-operating fully with the Moriarty Tribunal," they say.
The new Revenue chairman, Mr Dermot Quigley, said yesterday that, in the light of all the disclosures, it was more important for Revenue to be seen to be honouring its commitments. "We are giving the assurance that everything that needs to be done to follow up on those disclosures is being actively pursued by Revenue, and we will take whatever action that is appropriate to deal with whatever evasion has occurred," he said. Mr McCreevy said that he was particularly pleased with the business-like presentation which Revenue had adopted. Mr Quigley said the investigations were lengthy and, in the case of any prosecution, the procedures had to be observed. He said the Moriarty Tribunal would be examining the question of increasing the Revenue's powers of investigation and it was timely to have a review "in light of disclosures over the past year". On a settlement made by AIB of £10 million in Deposit Interest Retention Tax (DIRT), following a review of non-resident accounts in 1991, he said that there was a confidential arrangement "where matters are being investigated". In relation to non-resident accounts, Revenue's powers were limited, he added. The AIB review was undertaken in response to an initiative by the Revenue Commissioners. Mr Quigley said that the offshore accounts issue was not just a domestic one and there were ideas to withhold tax at European Union level "or at least have a better exchange of information".
"That decision will take place and that is relevant to the Moriarty Tribunal as well," he said. Asked about public confidence of the Revenue's investigative powers into Irish banking, Mr Quigley said that, in the case of National Irish Bank, Revenue had got the information on tax liability "using the powers that were available to us". Appropriate action would be taken in all cases, he said.
Credibility in the tax system was the life blood of flow of money to the Exchequer, he said, and where evasion could be proved, the appropriate consequences should follow. Asked whether there should be more prison terms imposed on evaders, he said that it was "implicit in our active prosecution policy that not enough people have gone to jail in the past". The Revenue designed and implemented a new prosecution policy in 1997, resulting in 18 tax evasion cases being selected for criminal investigation. Mr Quigley said currently that number had risen to 21.
