The Revenue Commissioners are conducting an inquiry into the "pick-me-up" mechanism for political funding, the Minister of State for Public Enterprise, Mr Noel Treacy, told the Dail.
"Revenue are in communication with the various persons concerned. They are precluded, in accordance with the ordinary confidentiality constraints, from commenting on the tax affairs of any particular person or body.
"The outcome of their inquiries cannot be anticipated, nor can tax evasion be presumed by anybody in any particular case. However, it may be assumed that Revenue will take whatever action is necessary as regards compliance with taxation legislation."
Mr Treacy said he could not speak for the other political parties, but the Taoiseach had recently asked the Revenue Commissioners to examine payments made to Fianna Fail using the mechanism, with a view to identifying whether there had been an underpayment of tax in any case.
"This matter came to light initially in Fianna Fail headquarters in March, during the process of a trawl for the purposes of furnishing an affidavit to the Flood tribunal. Information also came to light in the context of Fianna Fail preparing its returns for the Public Offices Commission, when our accountant first noticed this situation.
"Some donations were represented by an invoice rather than by a receipt, and this brought to light that the donation may have been made as a `pick-me-up'. A party official brought the issue to the Taoiseach's attention on March 31st.
"The Taoiseach immediately ordered that the practice be stopped. He was also adamant that the matter be rectified. The Taoiseach also directed that those involved in fundraising indicate, as a matter of course, that political contributions are not tax-deductible. Finally, he directed that everything be done to ensure that donations in the past did not involve an underpayment of tax.
"In early June, the Taoiseach directed the Revenue Commissioners be contacted at the highest level and requested to examine Fianna Fail's funding practice." ail accountant and the Chief Inspector of Taxes to initiate the examination." Mr Treacy was replying to Mr John Gormley (Green Party, Dublin South East).
Mr Gormley said that the people who claimed that the "pick-me-up" scheme was not that serious were the same people who believed that tax evasion was not serious.
It could be seen that people at the very highest levels in Irish society had accounts in Ansbacher, the NIB and AIB, with the intention of evading tax and were actively encouraged to invest in those schemes by officials of the banks. "It has even been reported that an eminent judge had money invested in these schemes, which perhaps accounts for the judicial leniency in relation to tax evasion."
The Leas Cheann Comhairle, Dr Rory O'Hanlon, intervened to say that Mr Gormley should not cast aspersions on the judiciary and he asked him to withdraw the remark. Mr Gormley said he would withdraw the remark.
