New warning to offshore evaders

Revenue authorities have warned people who failed to come forward with details of their offshore accounts that they will face the full rigour of the law.

More than 15,000 people contacted the tax authorities by last night's deadline, agreeing to make voluntary disclosures of their liabilities. A last-minute rush saw 7,000 people submit disclosures in office hours yesterday.

Those who have failed to contact the Revenue now face investigation and stiff penalties. Irish banks' foreign subsidiaries have sent out up to 120,000 letters to holders of offshore accounts in recent weeks.

The Revenue warning follows suggestions that at least one foreign subsidiary of an Irish-owned bank may not co-operate with the Revenue.

Sources said that the Channel Islands bank was approached by a client following receipt of a letter about the offshore accounts. The bank allegedly assured him that it had "no intention of supplying information to the Revenue".

A spokesman for the Revenue last night said: "People were told much the same at the time of the bogus non-resident accounts investigation. We simply went to the High Court and got the information from head offices rather than branches or subsidiaries.

"What this individual has got is about the worst advice you can get."

Banking sources said that the arrangement they had with the Revenue was that they would ask subsidiaries offshore to write to those customers with Irish addresses to notify them of the impending investigation into offshore accounts.

"That's all we have been asked to do," one said.

He suggested the bank customer may have "misinterpreted" what he had been told.

Accountants last night said there had been a rush of people seeking advice on whether they needed to make a declaration.

Tax specialists said there had been a "great deal of trepidation, particularly among people who availed of the 1993 tax amnesty".

Those who came forward at that time were required to pay only 15 per cent tax on undeclared income without any interest or penalties.

However, this money was simply a payment "on account". Any future discovery of a false declaration allows the Revenue to return to the original amnesty declaration and impose full settlement, including interest and penalties.