Emmet Stagg (Kildare North, Labour)
Link to this: Individually | In context

Question 73: To ask the Minister for Finance the number of court prosecution 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; the sentence in each case; if he has satisfied himself 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. [12402/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

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 there was one custodial sentence of six months. In 2003, there were six cases and seven convictions. Fines totalling €29,365 were imposed and there was 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, there were eight cases finalised and ten convictions resulted — a prosecution for tax evasion can involve more than one person, or a case may involve both individual and corporate culpability. There were three custodial sentences, one of two years suspended and two of three months each. In a further two cases 240 hours and 120 hours of community service were imposed in lieu of custodial sentences of six months and three months respectively. Fines totalling €199,287 were imposed. In another two cases guilty pleas were entered and sentencing was adjourned. In 2006 so far, there are 12 cases before the courts and a fine of €2,000 has been imposed in respect of a case adjourned from December 2005.

Revenue has a clear policy of prosecuting cases of serious tax evasion. This function is tasked to its 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 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 latest figures indicate that this approach is continuing to bear fruit. There are currently 56 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 seven. In another case a bench warrant has been issued for failure to attend court and, as I have stated, 12 cases are currently in the court process. I am satisfied that the above figures vindicate the decision to concentrate Revenue's prosecution resources in one area.