The Fianna Fáil TD, Mr Michael Collins, is to face investigation by the Standards in Public Office Commission, following the disclosure that he had used an offshore account to evade taxes. Mark Hennessy and Colm Keena report.
The Limerick West TD, who paid €130,602 to the Revenue Commissioners between April and June this year in taxes and penalties, was one of 419 tax defaulters named yesterday.
The focus has now turned on declarations made by Mr Collins to the Standards in Public Offices Commission after last year's general election when he claimed to be fully tax compliant.
In one, Mr Collins forwarded a tax clearance certificate secured from the Revenue, while in the other he swore in a statement within one month of the May 2002 election that his taxes were up to date.
Last night, the Standards in Public Office Commission said it would discuss Mr Collins's case with the Revenue "over the coming days" before deciding whether the TD has breached its rules. Under the 1938 Statutory Declarations Act, amended in 2001, Mr Collins could face a €2,500 fine and up to six months in jail if it is found that his declarations were false.
Last night, the Revenue Commissioners said they were "obliged" to issue tax certificates once individuals had declared in writing that their tax liabilities have been settled.
The Opposition held back for now from calling on Mr Collins to resign his seat. However, Fine Gael TD, Ms Olivia Mitchell said: "This concludes a bad week for Fianna Fáil and, more importantly, a bad week for politicians and politics."
Mr Collins could have settled his debts without publicity if he had complied with a November 2001 Revenue deadline to pay his back taxes, along with a penalty equal to the amount outstanding. Meanwhile, the embattled TD will also face an investigation shortly by Fianna Fáil's own ethics committee, which will be chaired by the Parliamentary Party chairman, Louth TD Mr Seamus Kirk.
The Minister for Rural, Community and Gaeltacht Affairs, Mr Ó Cuív said his actions were "hugely embarrassing" for the party, though he pointed out that Fianna Fáil had been the ones to give the Revenue extra powers to tackle defaulters.
Speaking in New York before departing for Dublin, the Taoiseach, Mr Ahern, said tax evasion was not tolerated in Fianna Fáil and every TD had a tax clearance certificate "to the best of my knowledge".
In a statement, Mr Collins said he "deeply regretted" the affair, though he claimed he was "in possession of a tax-clearance certificate in compliance with the statutory requirements".
Because of a pre-election pledge given last year to Fianna Fáil, Mr Collins can be asked by the party to resign his seat if his statements last year are deemed to have been untruthful.
The quarterly tax defaulters' list published yesterday was the longest to date and listed settlements totalling €36.2 million.
The cases involved 373 where the persons making the settlement had bogus non-resident accounts but had not availed of the "amnesty" offered two years ago by the Revenue whereby those who came forward would have their penalties capped and avoid publication of their names. A Co Westmeath businessman, Mr Brendan Galligan, of Rathcolman, Mullingar, made a settlement of €882,610, of which €483,916 was interest and penalties. His company, Mullingar Travel Ltd, made a settlement of €767,898, making a total of €1.65 million. The settlements arose out of the Revenue's inquiry into NIB.
Ms Elizabeth O'Connor, a restaurateur, of Gorey, Co Wexford, made a settlement of €884,194 in a bogus non-resident account case.