When the tax boat comes in

The Labour leader, Ruairi Quinn, has suggested that when all the hot money is collected from bogus non-resident accounts and …

The Labour leader, Ruairi Quinn, has suggested that when all the hot money is collected from bogus non-resident accounts and from the Cayman and other islands, there could be a repayment to the PAYE workers who were so highly taxed in the recent past. His office is currently working out the details and will be putting forward further proposals shortly. It is roughly estimated that about £300m should be recovered.

So are PAYE workers in for a once-off windfall? A nice cheque in the post? It seems unlikely, judging by the less than enthusiastic response among the powers-that-be. The feeling is that all monies should go into the Exchequer in the normal way, which means it will go towards the national debt, the pension scheme and the national development plan.

While acknowledging that the public would love it, they point out the difficulties with the Labour and trade union idea: no one knows how much is involved or when the windfall would land; or who would qualify for repayment and for how much. For example, would it only be those on PAYE in the early 1980s who would benefit or would today's compliant taxpayers get a piece of the action - a lump sum for all wouldn't reflect contribution. One bright spark pointed out that some on the Ansbacher and bogus DIRT lists are PAYE workers themselves - and indeed they are.

These are matters that Labour is already addressing, yet some critics have been heard to murmur that the whole suggestion is a bit rich coming from a member of the cabinet which sanctioned Albert Reynolds's 1993 tax amnesty against all advice. But it is also said that by the time the money (i.e. the back tax due, the interest and the penalties), actually reaches the Exchequer, Ruairi could be back in power and could implement the plan himself.

READ MORE

Of course it must be remembered that the legal eagles may get most of the hot dosh before it ever reaches the Revenue. Several teams of lawyers are already holding themselves ready for hefty briefs and it's not just writs about the leaking of names; some will fight the Costello investigation every inch of the way. Why not wipe the whole slate clean with another amnesty, one businessman suggested to Quidnunc tongue in cheek? Why not indeed.