Michael McGrath (Cork South Central, Fianna Fail)
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210. To ask the Minister for Finance if he is satisfied the Revenue Commissioners have adequate powers and resources to tackle tax evasion and aggressive tax avoidance schemes involving offshore companies and accounts; and if he will make a statement on the matter. [21233/16]

Michael Noonan (Limerick City, Fine Gael)
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The powers assigned to Revenue by the Oireachtas cover a very broad range of situations and circumstances and they have evolved over the years to reflect the ever-increasing complexity of tax law and the commercial environment; changes in Revenue administration; perceived weaknesses in the tax system; and international developments.

These powers and sanctions are designed to assist the State in collecting its due taxes in the right amount and at the right time and to provide Revenue with the necessary tools to counter evasion and avoidance, wherever it arises, be it onshore or offshore.

As regards offshore avoidance and evasion, I am advised by the Revenue Commissioners that Revenue has been to the forefront in acting against the use of offshore accounts, trusts and structures to evade tax liabilities and Revenue's approach has set the model for much of the work undertaken by other tax administrations in this area.

Revenue's investigations in that regard, have to date resulted in the recovery of €2.8 billion in tax, interest and penalties. Of this sum, Revenue's Offshore Assets Group, whose remit is to investigate the use of offshore accounts to evade or avoid tax, accounts for €1,022m of that sum.  The Group has, in the course of its work, made extensive use of the suite of powers available to Revenue. Use was made, in particular, of information on offshore transactions obtained from financial institutions on foot of orders granted by the High Court pursuant to section 908 of the Taxes Consolidation Act 1997.

While historically, Revenue's efforts in this space were set against a backdrop of bank secrecy and lack of exchange of information between tax administrations, the international climate over the past decade has changed and continues to change fundamentally. Legislation has been enacted enabling a number of key initiatives for the sharing of information with overseas tax administrations. These include the OECD's Common Reporting Standard, involving over 100 jurisdictions; the EU's Directives on Administrative Cooperation; and the US Foreign Account Tax Compliance Act (FATCA) initiative.

Most recently, revelations in early April 2016 by way of a set of leaked documents to the media from the files of the Panamanian-based law firm Mossack Fonseca have provided an unprecedented amount of information which has again focussed worldwide debate on offshore structures and how countries are going to respond. In that regard, Revenue is actively engaging with the OECD Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC) Network to agree concrete actions that tax administrations can take in response to this information.

While effective cooperation between countries - as reflected in the offshore financial information that the various Automatic Exchange of Information agreements will provide - is essential in tackling this worldwide problem, it is both necessary and desirable that domestic legislation governing Revenue powers is kept under constant review to ensure that it continues to be fit for purpose. In that regard, any recommendations from Revenue for increased powers are carefully considered.  As indicated in my response to Parliamentary Question 10831/16 of 18 May 2016 discussions are ongoing between my officials and those in Revenue in relation to Revenue powers in the context of the next Finance Bill.

I have also indicated to the Chairman of Revenue that I am committed to supporting any new legislative changes that he feels are needed to tackle tax evasion using offshore structures or accounts.