Jack Wall (Kildare South, Labour)
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Question 66: To ask the Minister for Finance his views on the section of the Comptroller and Auditor Generals report that states that only two custodial sentences were imposed in 2005 on tax evaders; the number of court prosecutions initiated as a result of tax evasion in respect of each year since 1997 to date in 2006; 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; and if he will make a statement on the matter. [39226/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I take it that the Deputy is referring to the subject of Revenue prosecutions activity, which is dealt with at Chapter 2.5 of the Comptroller and Auditor General's Report for 2005. I am sure he will appreciate that I cannot comment on individual sentences imposed by the courts for tax evasion. Sentencing is a matter for the judiciary and I can only emphasise this point. The courts clearly take account of matters such as individual circumstances and monetary penalties already paid when deciding the level of severity of sentences imposed in any single case.

I am advised by the Revenue Commissioners that the following information is the up to date position on court prosecutions initiated for tax evasion since 1997.

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 ten cases resulting in thirteen convictions. While the question from the Deputy only refers to two custodial sentences, there were in fact three, one of six months suspended on each of four counts to run concurrently and two of three months each. In another case a fine was imposed and if this was not paid within three months a two year prison sentence would have been imposed. 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 to 2006, when fines totalling €5,170 were imposed.

In 2006 so far, there have been three cases concluded resulting in three convictions. One case received a six-month suspended sentence and a fine of €3,200. In the other two cases fines totalling €35,481 were imposed. In addition to these three convictions, another 15 cases are currently before the Courts, the DPP has given directions to prosecute in another 9 and is considering a further 13 cases that have been referred to him. There is a bench warrant outstanding in one case and there are another 47 cases actively under investigation for potential prosecution. In all then, there are 85 cases of serious evasion currently being tackled on a criminal investigation footing by Revenue.

The Revenue Commissioners have a clearly stated 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.

I believe the level of prosecution activity outlined above demonstrates that the decision to concentrate Revenue's prosecution resources in one area was the right one.