Róisín Shortall (Dublin North West, Labour)
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Question 32: To ask the Minister for Finance the number of Irish people, and the amount of money, he believes have moved assets overseas through offshore trusts in each of the past five years to date in 2008; the number and the proportion of these people who declared income for tax in the appropriate year; when the Revenue Commissioners expect to be able to complete its investigation into the utilisation of such tax avoidance mechanisms using the new powers set out in the Finance (No.2) Bill 2008; and if he will make a statement on the matter. [45366/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that investigations carried out under the various legacy enquiries revealed the use of offshore trusts in the settlement of funds by Irish residents on non-resident trustees. The existence of such trusts came to light in the probing and examination of financial records and transmission of funds in individual cases. These investigations highlighted the need for access to information to assist in the identification of persons who have settled assets and funds on offshore trusts.

The Finance (No 2) Bill 2008 provides for measures which would assist in this identification process in the five year period up to the date of the passing of the Finance Act and would also provide a flow of information in respect of the period post that date. In addition, the provision allows for an Authorised Officer to serve a notice requiring a person, whom the Authorised Officer has reason to believe has information relating to a settlement, to deliver such information as required under the notice.

Details of the overall number of Irish persons who have settled assets and funds on offshore trusts, and the related value of the settlements, in each of the five years to 2008 is not readily available. Accordingly, it is not possible at present to state the number of persons who have declared income from such sources for tax purposes.

In regard to settlements made in the five-year period to 2008 the Finance Bill itself provides for the delivery of information to Revenue within six months of the passing of the Act. As such, the receipt of information will be expected to commence in mid 2009. The Revenue investigation of cases involving offshore trusts will be concerned with establishing the identities of persons who have made settlements on the trusts and also investigating whether any additional liabilities to tax arise on the settled funds. These enquiries will involve an examination of the trust structures, the nature and character of the settled assets and funds and the manner of operation and control of the trust assets. The scope of the Revenue investigation of this sector will largely depend on the nature and extent of the information received in respect of the settlements and it is not possible at this stage to determine a likely completion date.