People who held offshore accounts in a Jersey-based subsidiary of Bank of Ireland have paid €100 million in taxes, penalties and interest to the Revenue Commissioners, it has emerged.
The disclosure came from the chairman of the Revenue Commissioners, Mr Frank Daly, who appeared yesterday before the Dáil's Public Accounts Committee.
Meanwhile, a further €11 million has been paid to settle tax debts by people with accounts with two other Irish-owned financial institutions in Jersey and the Isle of Man.
Two further Irish institutions are now under investigation by the Revenue for illegally holding client funds offshore. "We fully intend to extend our inquiries in the coming months," Mr Daly warned.
One of these institutions, he said, has recently written to account-holders to warn them of the Revenue's interest in their affairs and to encourage them to settle with the tax authority.
"Our view is that there is more out there. It is likely to be a multiple of the €111 million. We will get to them. It might be this year, or next. But we will eventually find them," he said.
Facing questions from the PAC chairman, Fine Gael TD, Mr John Perry, Mr Daly said he had no problem with the warning from the unnamed institution to clients that the Revenue was closing in.
The Bank of Ireland was heavily criticised last April for issuing a similar warning to holders of accounts with the Jersey-based Bank of Ireland Trust Company.
In its letter to customers, the Jersey institution said it had been told by Revenue that its offshore assets group would set up an inquiry into Irish-owned trusts on June 1st last.
The bank warned that it was "highly likely" it would be legally obliged to reveal the existence and details of these trusts to the Revenue once the inquiry began.
And it pointed out that Revenue had made it clear that tax-evading trust holders would enjoy "significant benefits" if they came forward voluntarily, including reduced penalties and confidentiality.
"The fact that the Bank of Ireland drew their customers' attention to the voluntary disclosure scheme was good advice because we will get to them," Mr Daly told the Sligo/Leitrim TD.
People who make voluntary disclosures to the Revenue about such accounts will pay full taxes, penalties and interests, but their names will not be made public.
So far, Revenue's special investigation into offshore and non-resident accounts sparked by the DIRT scandal has reaped €892 million in back taxes and the total will eventually exceed €1 billion.
The Revenue's success in tracking down tax defaulters depends heavily on powers granted by the Government to them in 1999 to force banks to release information about accounts.
"Our general philosophy is that we will not, in general, back away from inquiring. We are pursuing these cases. There is big money here," Mr Daly said.
The near €1 billion tax yield to date is "very welcome for the Exchequer". "But there is a bigger strategic issue for the Revenue and that is to create a culture of tax compliance in this country.
"Tax is what pays for State services. If you hide money we will come after you. The culture of compliance is improving. People realise that the tax authorities will not go away," Mr Daly said.
The Revenue's investigation into the National Irish Bank/Cler-ical Medical Insurance, which has secured €47 million in back taxes and penalties from 379 people, is expected to conclude next year. Seventy-three other cases are currently being finalised.
