Pearse Doherty (Donegal, Sinn Fein)
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103. To ask the Minister for Finance the number of times Irish banks or their offshore offices refused to provide data or information requested by the Revenue Commissioners; if the requests were eventually acceded to; and if he will make a statement on the matter. [47620/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, as part of its offshore investigations, Irish financial institutions and their Irish registered subsidiaries were required on up to 40 occasions to provide information and data to Revenue usually on foot of a High Court Order.

The type of information covered by these Orders included-

- information, explanations and particulars, where such information was known to the financial institutions or subsidiaries concerned, and

- copies of books, records and other documents in the power, possession or procurement of the financial institutions or subsidiaries concerned,

in relation to transfers of funds made to, or from, offshore accounts and investments in offshore products.  

The financial institutions and subsidiaries concerned complied with the terms of the High Court Orders and supplied the information required by the Orders.

As respects foreign registered subsidiaries of Irish financial institutions, as these were companies registered and located in another jurisdiction, Revenue has no power to compel them to provide any information or documentation in respect of records relating to their account-holders or investors.

In one case, following a process of engagement with Revenue, an Irish financial institution sought to pass a resolution in a foreign jurisdiction to require its foreign registered subsidiary to provide information on its account-holders holding an address in the State. The Directors of the subsidiary concerned challenged the matter and the Court in that jurisdiction held that it would be against public policy for the Court to exercise its discretion to compel the Directors of that foreign registered subsidiary to disclose the information.

The international environment has changed significantly in recent years, with the emergence of closer cooperation between tax authorities worldwide aimed at those who hide their profits or gains offshore. Initiatives such as OECD’s Common Reporting Standard are now helping to ensure that tax administrations have greater visibility in respect of the offshore assets and income of their residents.

Pearse Doherty (Donegal, Sinn Fein)
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104. To ask the Minister for Finance the knowledge his office had of the existence of a company (details supplied) since a bank was nationalised; the oversight applied to this branch of the bank; and if he will make a statement on the matter. [47621/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy is aware that the Minister for Finance has no direct function in strategic or operational decisions made by the banks in which the State is a shareholder.  Decisions in this regard are the responsibility of the board and management of each institution, under the supervision of their regulator and equivalent authorities in the jurisdictions relevant to their operations. 

The Minister must ensure that the bank is run on a commercial and independent basis and in this regard a relationship framework has been specified that defines the nature of the relationship between the Minister for Finance and the bank.  These frameworks can be found on the Department of Finance website.

In carrying out its role in monitoring the performance of the banks in which we have a shareholding, officials in my Department meet the senior executives of each of the banks on a monthly basis and have access to monthly board papers.

AIB have advised me that post nationalisation of the Bank on the 23rd of December 2010 the businesses continued to be regulated by the Isle of Man Financial Services Authority and the Jersey Financial Services Commission and was governed by an independent Board in line with Group policy.

AIB have commented that:

"Arising from the recapitalisation and restructuring of AIB, and the European Commission decision on State Aid, it was decided to wind down AIB ISL Limited and AIB CI Limited in 2012. They ceased operations on 31st December 2013.

As a result, the banking licence of both companies was terminated and the administration of both, which is a legal and regulatory requirement as part of the orderly wind down of the banking operations, was migrated to and continues to be carried out by two companies, Estera Trust (Isle of Man) Limited and Estera Trust (Jersey) Limited trading as Estera."