The Labour and Fine Gael leaders criticised the Revenue Commissioners for their attitude to those holding bogus non-resident accounts.

Mr Ruairi Quinn said the 1993 tax amnesty legislation was the last opportunity for tax cheats to come on side. The Taoiseach, he added, who introduced it as Minister for Finance, must be aware that the Revenue Commissioners "are effectively subverting the provisions of the Act relating to the beneficial owners of non-resident accounts".

He asked what action the Government proposed to take regarding "this flagrant abuse of legislation passed in the House".

The Fine Gael leader, Mr Michael Noonan, said he wanted to put it to the Taoiseach in the strongest possible terms that Fine Gael was utterly opposed to anybody who availed of the amnesty taking advantage of the new arrangements in respect of the payment of DIRT.

"Does the Taoiseach agree with our view, and will he take immediate steps to contact the chairman of the Revenue Commissioners and to inform him that this House will not stand for that?"

Mr Ahern said he agreed with Mr Noonan. "The statement of practice is a matter for the Revenue Commissioners, who are charged, under tax law, with the assessment and collection of taxes imposed by the State.

"I understand the Revenue Commissioners took legal advice and are satisfied that the terms of the statement of practice, as set out on May 2nd, are in accordance with their care and management powers under their existing legislation.

"I agree that a number of issues which deputies have raised should be clarified. I understand the chairman of the Revenue Commissioners is happy to clarify these matters and that he will appear before the Committee of Public Accounts shortly to deal with the Revenue operations generally. No doubt the issues relating to the statement of practice will be raised in that context.

"I should point out also that, in its recent report, the Committee of Public Accounts, which includes members from all sides of the House, recognised the scale of the task which the Revenue Commissioners have to deal with in the assessment and collection of the underlying tax in a pragmatic and effective manner, while safeguarding the overall revenue of the State."

Mr Quinn said if the Taoiseach agreed with what was said, it was incumbent on his Government, and his Attorney General, to give a clear interpretation of the law on what constituted, in effect, "a second illegal tax amnesty, on foot of what was brought through this House as a full and final settlement of the issue of tax cheats."

He added that the Taoiseach and the Government had a responsibility to ensure that what was in effect an additional amnesty was not given to the tax cheats who availed of bogus non-resident accounts.

Mr Ahern said he did not want to get into a debate over the Revenue Commissioners' powers or lack of them.

"They have legal advice and are satisfied with the terms of practice. The Minister for Finance accepts this. It is not an amnesty if a person must pay 100 per cent of taxes and penalties. Anyone looking at what the Revenue is attempting must take that into account."

When the Labour deputy leader, Mr Brendan Howlin, remarked that the Taoiseach's remarks were rubbish, Mr Ahern said: "If the Revenue Commissioners are rubbish, the deputy can tell them so in the Committee of Public Accounts. It does not apply to those coming under inquiry by the Revenue Commissioners, the Ansbacher investigations, the Flood tribunal or the Moriarty tribunal."