Ruairi Quinn (Dublin South East, Labour)
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Question 105: To ask the Minister for Finance the number of court prosecutions initiated as a result of tax evasion in respect of each year since 1997; the number of cases in which convictions were secured; the number of cases in which prison sentences were imposed and if he will give the sentence in each case; if he is satisfied with the level of action taken having regard to the high level of evasion; if he will report on the work of the investigations and prosecutions division of the Revenue Commissioners; and if he will make a statement on the matter. [26645/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by Revenue Commissioners that the following information provides the up to date position on court prosecutions initiated for tax evasion: In 1997, there was one prosecution initiated for tax evasion. A fine of €635 was imposed with no custodial sentence. In 1998, there were six cases initiated and eight convictions secured and fines totalling €42,854 were imposed. There were two custodial sentences, one of six months suspended and one of two years suspended. In 1999, there were two cases. In one case, a fine of €19,046 was imposed with no custodial sentence and in the other, the defendant was acquitted. In 2000, three cases were initiated and three convictions were secured. Fines totalling €952 were imposed. There were two custodial sentences, one of two years, reduced to 18 months on appeal, and another of 12 months suspended. In 2001, there were four cases and fines totalling €14,284 were imposed. There were four custodial sentences, one of 12 months, two of six months suspended and another of three months. In 2002, there were three cases initiated and three convictions secured. Fines totalling €5,540 were imposed and one custodial sentence of six months suspended. In 2003, there were six cases initiated and seven convictions secured. Fines totalling €29,365 were imposed and one custodial sentence of two years suspended. In 2004, there was one case, a fine of €5,000 was imposed and 180 hours community service was imposed in lieu of a three months custodial sentence. In 2005 to date, there have been 12 cases initiated. In six of these cases sentence has been passed and the other six are still in the court process, including one case adjourned awaiting sentence. In the six cases where sentence has been handed down, fines totalling €170,400 have been imposed and two custodial sentences, one of three months and one of 16 months, have been imposed. In addition, sentences of 240 hours and 120 hours community service were imposed in two cases in lieu of custodial sentences. An appeal has been lodged by one individual against his conviction, sentence and order.

The Revenue Commissioners have a clear policy of prosecuting cases of serious tax evasion. This function is tasked to their investigations and prosecutions division. Following the restructuring of Revenue in 2003, all investigation activity was consolidated in this division with a remit to co-ordinate all Revenue prosecution work and, in particular, to increase the number of criminal investigations for serious tax offences and ultimately to increase the number of prosecutions. The number of investigators was also increased for this purpose.

The most recent figures indicate that this approach is proving successful. There are currently 52 cases under investigation for potential prosecution. The Director of Public Prosecutions is considering a further 12 cases and has given directions to prosecute in another four. Bench warrants have been issued in two cases for failure to attend court and, as I have stated, six cases are in the court process. Combined with the six successful prosecutions to date in 2005, of which the conviction and sentence in one case is under appeal, it is the highest overall figure to date and vindicates the decision to concentrate Revenue Commissioners' prosecution resources in one area.