Tommy Broughan (Dublin North East, Independent)
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12. To ask the Minister for Finance in view of the scale of tax evasion revealed at HSBC Bank in Geneva by the International Consortium of Investigative Journalists, the reason Dáil Éireann was not informed of this serious loss of revenue to the Exchequer in 2009-10; and if the Revenue Commissioners reported directly on this matter to the Department of Finance during that time or since then. [12952/15]

Michael Noonan (Limerick City, Fine Gael)
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As I have previously advised this House, confronting tax evasion in all its guises, including the use of offshore accounts for that purpose, is a priority for the Revenue Commissioners.  They have been to the forefront internationally in addressing evasion using offshore accounts and other mechanisms, and a series of special investigations that they have undertaken in this field has yielded in excess of €2.7 billion in tax, interest and penalties. Action against offshore accounts specifically had yielded more than €1 billion by the end of 2014.

In the case of HSBC Bank, Geneva, the Revenue Commissioners became aware in 2010 of newspaper reports that the French authorities had come into possession of information in relation to accounts held with that Bank. Revenue wrote to the French authorities enquiring as to whether the data obtained by them contained information relating to Irish residents, and whether the French authorities would consider disclosing any such information to Revenue. The French authorities responded positively and made a disclosure to Revenue on 23 June 2010.

The information received was evaluated carefully by Revenue and it was found, for a variety of reasons, that there was no basis for pursuing an investigation in many cases.  The reasons included the absence of Irish addresses on certain accounts, persons associated with the accounts not being resident or domiciled in the State and Revenue establishing that, by reason of prior disclosure, that there was no tax liability. In the case of corporate entities, many were found to have been Irish-registered but non-resident for tax purposes. The vast majority of the funds linked to Ireland in the HSBC data were related to the Funds industry: more than 98 of the total related to the Global Funds sector.

Following the evaluation of the information, Revenue initiated thirty three investigations. In eight of these, it was determined that there were no additional tax liabilities. Nineteen investigations resulted in settlement payments of over €4.5 million, and a further amount of over €172,000 has been received, as payment on account in relation to two appeals against tax assessments that were entered following investigations into the account holders. Six investigations are ongoing.

In addition to pursuing taxes owed, Revenue have also sought to have criminal proceedings brought in any cases where the information provided by the French authorities, and their own subsequent investigations, suggested that there was sufficient evidence to prosecute in respect of identified tax offences. Three convictions have been secured, resulting in the imposition of fines ranging from €4,000 to €25,000, and a further case remains under investigation.

I am advised that the Annual Report of the Revenue Commissioners for 2010 mentions the mutual assistance request made to, and the subsequent receipt of information from, a Treaty partner, which provided details of accounts held in Switzerland held by Irish residents. I understand also that the matter was raised when the then Chairman of the Revenue Commissioners appeared before the Public Accounts Committee in 2011. A comprehensive report on the matter was submitted to the PAC in February 2015, and the Chairman of the Revenue Commissioners appeared before the PAC on 12 March 2015.

Officials of my Department are in close contact with their counterparts in Revenue on  relevant tax matters on an ongoing basis. The Deputy will be aware, however, that there is a longstanding convention that the Minister for Finance does not intervene in matters involving Revenue and individual taxpayers. I would draw his attention to the terms of section 101 of the Ministers and Secretaries (Amendment) Act 2011, which provides for the independence of the Revenue Commissioners in the performance of their functions.

I wish to commend Revenue for the pro-active role it has taken in tackling tax evasion through the use of offshore accounts. I am confident that they will continue to undertake this important work efficiently and effectively, and that they will use all the analytical and investigative  tools and methods at their disposal to extract as much information as possible from both current and any further data that become available to them. I am aware that they intend to carry out a further evaluation of the HSBC Bank data using new analytical technology, to ascertain whether it brings to light any further cases that may warrant investigation. They will also play an active role in developing cooperation between countries to ensure that the scope for the use offshore accounts to escape tax responsibilities is curtailed to the greatest extent possible.