The Minister for Finance is certain that prosecutions for tax evasion will increase in future years.

Mr McCreevy told the Dβil that 16 prosecutions for serious tax evasion have been secured since 1996, out of 17 cases taken, and three evaders are currently in prison. But only one case for serious tax evasion was taken in the five years to 1995. He added however that more than 1,000 convictions are secured each year for failure to file tax returns.

He said a "very high level of evidence and proof is required to sustain a criminal prosecution", but added the Revenue's proposal to set up a specialised prosecution division "will further enhance progress in this area."

Fine Gael's Finance spokesman, Mr Jim Mitchell said the Minister's response that it is a "long drawn out, tedious process" to secure a conviction "is a message to tax evaders that they need not worry too much about prosecution". He said there were 50,000 bogus non-resident accounts while there were 16 convictions. "We do not want to put people in jail for the sake of it but we want to send out a message to tax evaders that there is no place for tax evasion in society."

Labour's Finance spokesman, Mr Derek McDowell, said it was surprising that the number of convictions had not increased in the past two years given the Revenue's additional powers.

The Minister said that proportionately the number of prosecutions in Ireland for serious tax evasion is in line with the number taken by the Inland Revenue in Britain. "I am certain the number of prosecutions will increase in coming years." He added that taxpayers have become more compliant, and the level of tax evasion is much lower now than in the past because of more rigorous investigations by the Revenue.