Revenue has collected €2.3bn from special tax inquiries

Revenue inspectors have collected €2.3 billion since they started special investigations into tax evasion.

Revenue inspectors have collected €2.3 billion since they started special investigations into tax evasion.

Minister for Finance Brian Cowen told the Dáil that, up to the end of February, €2.297 billion had been collected from 31,950 taxpayers.

Most of the money came from investigations into bogus non-resident accounts, offshore accounts and single-premium insurance products.

He said the rest of the funds related to monies recovered through the Ansbacher investigation, the National Irish Bank/Clerical Medical Insurance scheme and tribunal-related inquiries.

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Mr Cowen said some 5,000 letters were to be sent at the end of the month to people who invested in single-premium insurance schemes but who did not make voluntary disclosures.

A number of investigations were at an advanced stage.

"The follow-up phase of the bogus non-resident investigation is almost complete."

The inquiry letter phase of the offshore investigation, which followed those who did not make voluntary disclosures, started last year and would continue into next year.

The Dirt audits yielded €225 million, bogus non-resident accounts returned €627.2 million, off-shore assets accounted for €856.2 million and single-premium policies resulted in the recovery of €422 million.

The Ansbacher investigation returned €68.4 million, NIB-Clerical Medical Insurance €59 million, tribunals returned €39.4 million, which totalled €2,297.1 million to date.

Mr Cowen said the Revenue Commissioner believed the investigations has "been very successful, not just in recovering outstanding taxes but in improving tax compliance in general in this country".

He added: "The overall approach has been very effective, and in some cases is being adopted by other revenue administrations."

Labour's finance spokeswoman Joan Burton suggested that the recovered money showed that former minister for finance Charlie McCreevy was wrong when he said "there were no pots of gold with regard to unpaid taxes".

She asked how many court cases had the Revenue taken to gain access to financial information.

Mr Cowen said 18 High Court orders were granted in relation to bogus non-resident account investigations, and 21 High Court orders for cases dealing with offshore accounts and single-premium insurance products.

The Minister pointed to the Revenue Commissioner's report that "the level of tax arrears is about 2 per cent, which in international taxation terms is a good indication of a far more compliant culture being in place than may have been the case in the past".

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times