Brendan Howlin (Wexford, Labour)
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Question 152: To ask the Minister for Finance 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. [19279/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the Investigations and Prosecutions Division was established in the course of the comprehensive restructuring of the Office of the Revenue Commissioners, which took place during 2002 and 2003. The Division spearheads the Revenue drive to combat serious non-compliance in relation to tax and duties. It carries out the work in conjunction with the Revenue Regions and the Large Cases Division. It has a remit to co-ordinate all Revenue prosecution activity with the aim of increasing the number of criminal prosecutions for serious tax and duty offences and to co-ordinate the major Special Investigations Projects.

In the area of criminal investigation and prosecution, there were 24 convictions for serious tax and duty evasion in 2005, including two guilty pleas, for which sentencing was adjourned. Custodial sentences totalling 12 years (suspended in some cases) were imposed as well as fines totalling €237,052. There are currently 61 serious 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 8. There are in addition, 20 cases currently in the court process.

The Special Investigations Project, involving the Bogus Non-Resident accounts, Offshore Assets, Single Premium Insurance Policies, National Irish Bank/Clerical Medical Insurance, Ansbacher and cases emerging from the work of several Tribunals have resulted in recoveries, from 30,000 non-compliers, of around €2.2 billion in tax, penalties and interest for the Exchequer.

The Division, in addition, has responsibility for matters such as the co-ordination of the approach to cross-border VAT fraud, criminal cash seizures, serious cases of smuggling involving tobacco and other products, oil laundering and other fraudulent activity and deepening the formal and informal links with other agencies, both national and international, in the pursuit of these goals. In addition, it is responsible for co-ordinating the Revenue commitment to the supply side objectives of the National Drugs Strategy. During 2005 the Revenue Customs Service seized illegal drugs with a street value of €37 million.

The Investigations and Prosecutions Division's central role in the drive against serious tax and duty fraud needs to be viewed in the broader strategic context in which Revenue restructuring took place. There are now 16 Divisions in Revenue, each with its own particular responsibilities and they act in an integrated and interdependent manner tackling non-compliant taxpayers on a cross tax-head basis. This approach is underpinned by the use of technology-based risk assessment tools to focus on areas and individuals posing the greatest threat to the Exchequer. The latest figures indicate that this approach is bearing fruit.