Mary Upton (Dublin South Central, Labour)
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Question 88: 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 the sentence in each case; if he is satisfied with the level of court cases 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. [39015/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the following information is the up to date position on court prosecutions initiated for tax evasion. In 1997, there was one prosecution and one conviction. A fine of €635 was imposed with no custodial sentence. In 1998, there were six cases and eight convictions; 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 and one conviction. In one case a fine of €19,046 was imposed with no custodial sentence. In the other the defendant was acquitted.

In 2000, there were three cases and three convictions. 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 four convictions. 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 and three convictions. Fines totalling €5,540 were imposed and one custodial sentence of six months.

In 2003, there were six cases and seven convictions. Fines totalling €29,365 were imposed and one custodial sentence of two years suspended. In 2004, there was one case and one conviction. 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 eight cases finalised and ten convictions have resulted — a case can involve more than one person. There have been three custodial sentences, one of 16 months, which is currently under appeal, and two of three months each. In another two cases 240 hours and 120 hours of community service were imposed in lieu of custodial sentences of six months and three months respectively. In addition, fines totalling €199,287 were imposed. A further eight cases are before the courts.

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 58 cases under investigation for potential prosecution, the Director of Public Prosecutions is considering a further ten cases and has given directions to prosecute in another four. Bench warrants have been issued in two cases for failure to attend court and eight cases are in the court process. Combined with the eight successful prosecutions to date in 2005, of which the conviction and sentence in one case are under appeal, it is the highest overall figure to date and vindicates the decision to concentrate Revenue's prosecution resources in one area.