The Revenue is close to an agreement with authorities in the Cayman Islands, one of the world's most secretive off-shore tax havens. The move could force financial institutions there to disclose confidential information about illicit Irish-owned holdings - including the infamous Ansbacher accounts.
The Revenue believes the Cayman government is on the brink of a major policy shift that will lead to a substantial diminishing of the anonymity traditionally guaranteed to foreign investors in the face of mounting international pressure led by the US and OECD.
Warning tax evaders there could be "no hiding place" from his inspectors, Revenue chairman Mr Frank Daly said the pact would facilitate the exchange of bank data and provide access to information about beneficial ownership of companies and trusts. Similar arrangements are also being negotiated with Jersey, Guernsey and the Isle of Man.
Under the agreement, Revenue hopes to be able to sift through foreign bank accounts and trace the origins of companies and trusts set up as tax havens for Irish citizens. The organisation believes it can successfully conclude negotiations within weeks.
Addressing a meeting of Waterford Chamber of Commerce, Mr Daly said his inspectors would be relentless in pursuit of those found to have illicitly hidden money in overseas bolt-holes. He said: "The net effect of these developments - access by Revenue to financial records at home and abroad - will be fewer and fewer hiding places for monies on which tax has been evaded.
"There's also a growing acceptance internationally that tax evasion and its facilitation by so called 'tax havens' is counterproductive to international development and growth and ultimately damaging to the economies of those countries themselves. So, as we get agreements with the Isle of Man, Guernsey etcetera it seems highly unlikely that there will be any other potential havens looking to take their place," he added.
The Revenue is determined to resolve outstanding controversies - including Ansbacher and bogus non-resident accounts, he said. In the last year it set up an overseas assets unit with specialist staff concentrating on overshore tax evasion and expected to achieve substantial results in the coming year.
"Several years ago people put money in bogus non-resident accounts in the belief it was forever hidden from Revenue - now they find it is not. Those who put money offshore in the same belief must now face similar disillusionment," said Mr Daly.
Information exchange pacts are likely to be concluded with other jurisdictions over coming months, a Revenue spokesman added.
With the forthcoming Financial Services Regulatory Bill expected to streamline co-operation between Revenue, the Central Bank and the banking sector, inspectors are ready to redouble their pursuit of evaders on home soil, Mr Daly said. And moves by the EU and OECD to encourage mutual assistance between tax authorities will strengthen Revenue's hand. He is determined to demolish the "myth" that the Revenue is a soft touch.
