ACCOUNTANTS HAVE been warned by the Revenue Commissioners that they will be prosecuted for aiding and abetting tax evasion if they are linked with multiple cases of evasion.
The warning has been given several times in recent months to accountants in Cork and Kerry by a newly-created Revenue unit, and senior Revenue staff based in Cork.
The Regional Investigation Branch (RIB) will handle all tax prosecutions in the southwest region, rather than having them dealt with from Dublin by Revenue's headquarters staff, and the Director of Public Prosecutions.
The new model will be spread to all other Revenue areas if it proves successful, the Revenue Commissioners told The Irish Times, though a very similar model is already getting under way in Waterford.
So far, the new Cork unit has adopted a tough stand in its preliminary discussions with accountants, though, as yet, no prosecutions have been launched by it.
Accountants are liable to prosecution under Section 1078 of the Taxes Consolidation Act, but cases have rarely been taken by the Revenue, or the Director of Public Prosecutions.
The Act states that a person is liable to conviction if the person "knowingly aids, abets, assists, incites or induces another person to make or deliver knowingly or wilfully any incorrect return, statement or accounts in connection with any tax".
The Cork-based Regional Investigations Branch has been "quite open" about its determination to adopt a tougher line with errant accountants and their clients, numerous sources have told The Irish Times.
Meanwhile, individuals or businesses who come under investigation by the RIB will be not be covered by Revenue's Code of Audit Practice, and thus will be prevented from making a last-minute disclosure in a bid to cut penalties and prevent their names from being published.
Currently, individuals and businesses are able to make a last-minute plea when they are first audited, though penalties are not mitigated in any subsequent audit.
People who have previously been caught for tax evasion will be particularly scrutinised by the 16-strong unit, headed by a former Department of Foreign Affairs official, Eoin Ó Dómhnaill.
The head of the Revenue's office in Cork, Tony Buckley, who has been quite vocal in the past about his opinions of tax compliance in Ireland, warned accountants that he intended to take a very strong line when he spoke at the opening of the Revenue's new offices in Blackpool in the city.
In reply to questions, the Revenue said it did not envisage "additional large numbers of prosecutions as a result of this project", but that it would be spread to all other Revenue offices if it proves successful. The pilot model in Cork is designed "to develop a more effective capability to pursue offences in appropriate cases. There is no suggestion of a campaign to prosecute all offences. The intention is to apply the appropriate sanction, including prosecution when appropriate, to different types of non-compliance," said the Revenue spokesman.
Last year, Revenue prosecuted 14 people for "serious tax evasions", while 1,500 more faced action over customs, excise and vehicle registration breaches, and a further 1,200 were prosecuted for failing properly to file tax returns.
