Written answers

Tuesday, 17 January 2017

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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279. To ask the Minister for Finance his plans to legislate to impose penalties for enablers of offshore tax evasion or non-compliance as happened recently in Britain (details supplied); his views on the suitability of that legislation to Irish law; and if he will make a statement on the matter. [1294/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that subsection (1A) of section 1078 of the Taxes Consolidation Act 1997 makes it a criminal offence for a person to be knowingly concerned in the fraudulent evasion of tax by another person, to be reckless as to whether or not the person is concerned in facilitating such evasion, or to be knowingly concerned or reckless about a person committing a specific Revenue offence of a kind specified in subsection (2) of section 1078. This criminal sanction applies regardless of whether the evasion is onshore or offshore in nature.

"Facilitating" is defined in subsection (1A) as "aiding, abetting, assisting, inciting or inducing".

A person convicted of such an offence is liable on summary conviction to a fine not exceeding €5,000 or, at the discretion of the court, to a term of imprisonment of up to 12 months, or both and on conviction on indictment, to a fine of up to €126,970 or to a term of imprisonment of up to 5 years, or both.

There already exists, therefore, a robust suite of measures in section 1078 of the Taxes Consolidation Act providing for criminal prosecution of tax evaders generally, including those involved in offshore evasion, and those who facilitate such evasion.

The Deputy will be aware of the changes I made in section 56 of Finance Act 2016 relating to the withdrawal from 1 May this year of the penalty mitigation arrangements currently available to tax defaulters who make a qualifying disclosure to Revenue, where the default involves offshore evasion. These changes, coupled with the coming on stream of international exchange of information arrangements will ensure that tax defaulters who have used offshore accounts or assets in their evasion and, indeed those who have facilitated such evasion, will find themselves in a very difficult position in their dealings with Revenue after that date. 

In that regard, I am advised by the Commissioners that Revenue is fully committed to targeting for criminal prosecution evaders who use offshore evasion and those who facilitate or assist such behaviour.

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