John Deasy (Waterford, Fine Gael)
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Regarding the evolution of our laws dealing with tax avoidance and tax evasion, in 2003 the Chairman and I sat on the Committee of Public Accounts. At the time it became clear and was accepted that AIB and other banks were involved in tax avoidance of almost an industrial scale with their customers. It was not a matter of conjecture but was proved to be the case. As well as the debates we had at the Committee of Public Accounts in 2003 and 2004, it resulted in a change in the law.

The Central Bank and Financial Services Authority of Ireland Act 2004 made it an offence to aid and abet, conceal and counsel customers in tax avoidance and tax evasion, but I am not aware of any conviction arising from the Act since. In actual fact, several years ago, relating to HSBC and deposits held in France, the then chairman of the Revenue Commissioners, Ms Josephine Feehily, made it clear that the 2004 Act was completely insufficient. She made a point that tax inspectors would have to be standing beside the tax official and client to actually prove a case to the criminal level of proof required. That is still the case with regard to our tax evasion laws. I am not asking the delegates to comment on that matter as I am asking the wrong people the question. However, perhaps the delegates have an opinion on the current tax law, as it pertains to bank officials and tax evasion generally.