Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context

Question 103: To ask the Tánaiste and Minister for Finance if, in view of the fact that the Revenue Commissioners brought in €2.4 billion from special investigations since 2002 and the endemic nature of the problem, he will review or increase the penalties, including the increased use of incarceration as a deterrent, for tax evaders; and if he will make a statement on the matter. [2328/08]

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

As the Deputy is aware, the special investigations to which he refers relate to major projects undertaken by the Revenue Commissioners in connection with particular methodologies used by taxpayers to evade tax in the past. These investigation projects have proved to be very successful and some are nearing finality. The recoveries made to date comprise tax, interest and civil penalties. The Commissioners also expect a longer term compliance dividend as a consequence of the success of these projects. The penalties arising from the projects, which are imposed under the Taxes Acts for fraudulently or negligently delivering incorrect returns, are substantial and can amount to one hundred percent of the tax defaulted. The Revenue Commissioners may mitigate the penalty where a voluntary disclosure is made and full co-operation is extended. The Code of Practice for Revenue Auditors outlines the approach adopted in this regard.

I am satisfied that the level of penalties provided for by the Taxes Acts is sufficient and provides a strong deterrence to tax evasion.

The issue of incarceration arises on sentencing, where a taxpayer who has been the subject of a criminal investigation by Revenue is convicted in the Criminal Courts. In recent years Revenue has significantly ratcheted up its programme of investigating particular cases with a view of prosecution and has a good record in achieving convictions. Although the Taxes Acts provide that a jail sentence can be imposed for serious tax offences, it is ultimately a matter for the Judiciary who, I understand, take account of a range of factors in determining the nature of the sentence handed down.