The chairman of the Revenue Commissioners will meet the Financial Services Industry Association this week to discuss the FSIA's concern about the Revenue's DIRT look-back audits, according to the Minister for Finance.
Mr McCreevy said the association's concerns about certain documentation compliance issues involving DIRT were a matter for the Revenue Commissioners and it would be "totally inappropriate for me to become involved with these issues at this stage".
He was responding during finance questions to Fine Gael's finance spokesman, Mr Michael Noonan, who asked if Mr McCreevy was aware of the association's concern that "irreparable damage will be done to the financial services industry if Revenue continues to pursue these audits".
The Limerick East TD insisted, however, that "it is appropriate for the Minister, who has responsibility for the success and management of the International Financial Services Centre, to concern himself with this matter and protect the industry".
Mr McCreevy said he was aware of the problem and was "concerned about any damage done to the IFSC", although he pointed out that the problem also related to domestic banks. He understood the meeting between the Revenue chairman and the association would consider the "interpretation of the law".
The FSAI has sought the intervention of the Taoiseach over the Revenue's offensive against DIRT evasion, cautioning that it could have implications for relations with the large multinationals which have legitimate funds in non-resident accounts.
Mr McCreevy said some lessons should be drawn from the DIRT inquiry about the roles of the Department of Finance and the Minister with the Revenue Commissioners. "I am satisfied that the proper course is being pursued."
He added that "we would all be advised to allow that matter take its course. I have not discussed the matter with the chairman of the Revenue Commissioners."
He said a look-back DIRT audit in relation to all 37 financial institutions in the State was recommended in the report of the Committee of Public Accounts' DIRT inquiry.
He was aware that the chairman of the FSIA had written to the chairman of the Revenue Commissioners "expressing concerns at documentation compliance issues in relation to DIRT which may arise in the case of certain IFSC banks". They included the "possible need for inclusion of notes in the accounts of the parent companies dealing with the question of contingent liabilities".
Mr Noonan asked when the Minister first became aware of the problem and asked "why is action only being taken now, when interested parties have been forced to make it a public controversy to force the Minister to act?"
Mr McCreevy rejected this and said the association had written to him last week and a similar letter went to the Taoiseach and the chairman of the Revenue Commissioners.
