The Revenue Commissioners will be given enhanced powers to pursue major tax evaders and those who aid and abet evasion under legislation to be introduced under the Finance Bill 2005.
The Minister for Finance, Mr Cowen, published the annual Bill today which enacts the changes announced in the December budget.
In addition to the Budget changes, the Bill has also revised tax penalties and will raise the publication threshold for tax defaulters has been increased from €12,700 to €30,000.
An aiding and abetting offence will be introduced for persons or organisations which collude with or facilitate tax evasion. This expands the present legislation which only covers the offence of assisting someone in making an incorrect return.
The controversial tax relief on stallion fees is under revision following an EU decision that the relief amounted to an unauthorised State aid. The Government has until the end of February to respond to Brussels but this can be extended and the Minister indicated that a prolonged correspondence on the isssue is likely.
The Revenue has also been granted powers to investigate single premium policies which it believes have been used to conceal untaxed funds. The Bill will give Revenue the power to access the policies taken out by Irish residents if they have reasonable grounds to believe an offence has been committed without seeking permission from the High Court.
Mr Cowen said that he had sought to strike a balance in his first Finance Bill in combating tax evasion and avoidance and ensuring that the tax system recognised the needs and concerns of compliant taxpayers.
He had also sought, where possible, to amend and re-focus the tax code to ensure that the tax system played a positive role in supporting economic development.
The Minister said that he was closing off particular tax loopholes in the VAT, income tax, capital acquisitions tax, stamp duty and life assurance areas. "This will re-assure taxpayers that all those liable to tax are required to pay their fair share".
The introduction of the stamp duty exemption for switching ATM and laser cards announced in the Budget has been delayed for 12 months following meetings with the banks who claimed they needed the delay to adjust their accounting and IT systems.