Kevin Humphreys (Labour) | Oireachtas source

Many of the issues that are discussed in this House cannot be acted upon unless we have a tax system that works efficiently. The arms of the State must support the collection of taxes, whether for hospitals, housing, supports for rural areas and so on. Our tax base must be supported and sustained. In early January, I contacted the Revenue Commissioners to highlight allegations that national lottery staff were giving tax avoidance advice to lottery winners in respect of gift tax, inheritance tax and several other taxes. In the excitement of winning a large amount of money, people will most likely take any advice they receive from the national lottery. In some cases, it is alleged, that the advice was to form a syndicate where none existed before. I am deeply disturbed that the lottery licence may have been granted to agencies which see fit to help people to defraud our tax system.

I have not yet had a response from Revenue to my query but evidence that was recently put before the courts indicates such activity did take place in the past. We do not know for how long it went on. The Minister must come to the House to assure us that the current licensee is not giving tax avoidance advice, which would constitute a breach of the tax code. There must be an assessment of the previous licensee to ascertain what advice it gave customers and whether it colluded in the avoidance of tax. A former lottery claims manager told the High Court that he advised sole winners that they possibly could form a syndicate even where it was not in existence prior to the win. This is a clear breach of law and, if the allegations are correct, tax was forgone. We are all agreed on the importance of bringing in foreign direct investment. For that and other reasons, the integrity of our tax system is important. A licensee of the State cannot be allowed to collude in the breaching of the tax code.