McCreevy rejects claim by inspectors on tax evasion

The Minister for Finance and the Revenue Commissioners have rejected claims by the union representing tax inspectors that they…

The Minister for Finance and the Revenue Commissioners have rejected claims by the union representing tax inspectors that they are "not on the same wavelength" on the issue of tax evasion.

The criticism was made at the IMPACT conference in Cork.

The Association of Tax Inspectors passed a motion at the conference saying there could be a public perception that the Government was failing in its duty to be strict on tax dodgers.

IMPACT executive member Mr Peter Dockery claimed that not enough attention was being paid to the anti-evasion measures proposed by the Revenue Commissioners.

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He questioned Mr McCreevy's commitment to providing the powers needed.

"At the DIRT inquiry the Revenue Commissioners blamed the Minister for Finance for failing to provide adequate legal powers to enable a crackdown on bogus nonresident deposit accounts," he said.

"Under the most charitable interpretation, the Revenue Commissioners and the Minister were not on the same wavelength when it came to dealing with tax evasion."

But a spokesman for the Department of Finance said there was "no outstanding shopping list for extra Revenue powers".

Mr McCreevy had sanctioned more than 300 new posts to beef up the commissioners' prosecution unit, he added, and in 1999, had given them a package of major new powers, including the power to access bank accounts.

The spokesman said the Department was "very surprised" at the way the matter was being dealt with by IMPACT, given that the Minister met the union regularly to discuss their views.

A Revenue spokesman also rejected the criticisms, saying Mr McCreevy had been "accommodating" on demands for increased powers and staff.

The 1999 Finance Act had given "very strong powers" to investigate tax evasion, and those powers were now being used in the ongoing DIRT investigation.

Mr Dockery questioned whether the Moriarty tribunal would be given details of Revenue Commissioners' proposals, which were either postponed or rejected by the Government.

"If Judge Moriarty had access to these proposals, would it help to ensure the 'greatest degree of openness and accountability'?

"If Judge Moriarty does not have access to these proposals, how can he make reliable judgments about the independence, performance and accountability of the Revenue Commissioners?"

He added that one major weapon in the battle against tax evasion would be a special revenue court - at a minimum of District Court level.

He also called for greater enforcement of penalties to encourage the wealthy tax evader to pay his fair share.