Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

HSBC tax issues date back to 2010, which was before my period of time in office. I am not familiar with the details of it. However, my understanding of it from newspaper reports was that three cases were legally pursued by Revenue. I think one of them went to sanctions.

I am advised a detailed report on offshore accounts held with HSBC is being prepared by the Revenue Commissioners for the Committee of Public Accounts but, in the meantime, I can provide the following information. Information on offshore account holders in HSBC Switzerland came into the possession of the French authorities in December 2009. The Revenue Commissioners wrote to the relevant French fiscal authorities in March 2010 when they became aware that the French Government may have obtained information in regard to bank accounts held with HSBC Bank, Geneva. That communication expressed an interest in any such information which related to Irish residents and requested that the French authorities exchange this information under the provisions of the Ireland-France double taxation agreement and EU mutual assistance arrangements.

On 23 June 2010, the French authorities responded positively to this request and provided details to Revenue in regard to bank accounts purported to be held with HSBC Bank, Geneva, which had been linked to Irish nationals or to addresses in Ireland. The receipt of this information was referred to in Revenue's 2010 annual report.

On receipt of the data Revenue undertook an assessment and evaluation process which indicated that no further liability arose in the State in a number of cases. It should be noted that the existence of a foreign bank account is not evidence of tax evasion. No liability will arise where relevant taxes are paid on the funds in the bank account and any interest accruing in the account.

To date, Revenue has initiated 33 investigations as a direct result of the data received. As result of these investigations, 20 settlement payments were made, of which four were made be legal entities. Overall, the total amount recovered to date as a result of these investigations and subsequent settlements is €4,559,371 million while a further €174,442 has been received in payments on account in two ongoing investigations.

On the basis of data provided by the French authorities and the subsequent investigations conducted, Revenue also took action in any case where sufficient admissible evidence was available to bring criminal prosecution in regard to any identify tax offences. To date, three persons have been convicted of such offences and fines ranging from €4,000 to €25,000 have been imposed by the courts. A further case remains under criminal investigation.

Revenue deployed the resources necessary to evaluate and assess the information provided in regard to HSBC account holders and to subsequently undertake investigations and prosecutions that followed. Revenue officials who were involved in this investigation were concurrently involved in other investigations. It is not, therefore, possible to disaggregate the time and resources involved in the investigation.