If the Revenue Commissioners were given powers to open up bank accounts solely on the basis of suspecting tax evasion, "a lot of money would leave the country", the chairman of the Revenue Commissioners has said.
Mr Cathal Mac Domhnaill said that while the Revenue would vigorously pursue tax evaders, "draconian" powers would not necessarily be effective.
He said account holders with National Irish Bank (NIB) who have availed of Clerical Medical International (CMI) insurance products will be pursued for any tax liability they might have.
He said some of the depositors may be using the CMI products as a way to "cloak profits.If there is an issue of capital gains or other tax liabilities, we'll vigorously pursue them", he added.
He was speaking at the opening of a new Revenue Commissioners office in Tallaght, Co Dublin. Also speaking at the opening, was the Minister for Finance, Mr McCreevy.
He said people were "scaremongering" about the level of tax evasion taking place in the State. "The sums uncovered are very small in the context of the level of tax paid each year, so I think we need to put it in context." He pointed out that the deposits involved in the NIB case represent about 0.1 per cent of the banks overall accounts.
"There is an investigation taking place and I am confident that with the powers the Revenue have, they will unearth the truth." Mr McCreevy said while elements of the CMI scheme did "concern" him, it was an insult to the vast majority of taxpayers to say tax evasion is widespread.
He said the Revenue wanted to await the report of Mr Justice Moriarty before they decided if new powers are needed. If the Revenue Commissioners required more powers, he would be happy to introduce them, he said.
Mr Mac Domhnaill said the aim of the Revenue Commissioners in recent months has been to secure custodial sentences for tax evaders.
However, he said most judges were very slow to impose a prison sentence on those found guilty.
"In the end a judge decides whether a guilty person receives a fine, prison or just pays the outstanding tax, we have no say in the decision," said Mr Mac Domhnaill.
He said there was no point in "simply singling out someone for prosecution because they are an easy target or in the public eye". He said the Revenue had received a lot of co-operation from NIB and he expected the current investigation to be a "long drawn out affair", due to the complex nature of the material involved.
