The Revenue Commissioners are examining details of offshore deposits held by National Irish Bank account-holders, which amount to £23 million. The money is held by an Isle of Man fund manager on behalf of some 60 to 70 Irish depositors, although more than 200 depositors are believed to have been involved at one stage. The Central Bank is also to examine the matter according to a spokesman last night. National Irish Bank, meanwhile, announced that it would conduct its own investigation, likely to be undertaken by a team from its parent, the National Australia Bank and that it would co-operate with the Revenue Commissioners. It "does not condone tax evasion," according to a statement, issued in response to a report on RTE news.
The depositors, who had money lodged with NIB, placed the funds with an Isle of Man investment company, Clerical Medical International (CMI). The bank then advised the customers to instruct CMI to have their investments placed on deposit with NIB. Much of the money moved around 1994 and 1995. It appears that a substantial portion of the funds came from money held in non-resident accounts, or other accounts not known to the Revenue Commissioners.
In response to suggestions that it had encouraged the use of the Isle of Man deposits as a way to evade tax, NIB, in a statement last night, said an investigation was being "processed rigorously to determine the facts of the situation. The allegations are of a most serious nature and in contravention of the bank's policies."
Such was the bank's success in selling the CMI product that around half a dozen NIB staff were invited to a CMI convention in Australia as a reward.
Mr David Shelton, marketing manager with the Clerical Medical group, said the CMI product allowed people to hold a wide range of assets, from money lodged in deposit accounts through to shares, although most of the money was held in deposits.
It is a whole-of-life product, with no fixed term, meaning the customer can cash part or all of it through CMI whenever they wish.
Mr Shelton said the product was suitable for well-off people and is "a perfectly legitimate product".
