Minister for Finance Brian Cowen has today further extended the powers of the Revenue Commissioners by adding the offence of "inciting or inducing" tax evasion to the Finance Bill.
In a significant hardening of language from the original Bill, Mr Cowen has made a number of amendments that broaden the range of activities deemed to be fradulent.
The Finance Bill already contained provisions creating a new offence of "aiding and abetting" tax evasion.
The new offence of "inciting or inducing" means that a person may be prosecuted even where he or she may not actually have assisted in the evasion.
The list of offences defined as facilitating fraudulent evasion have also been extended to include the practice of claiming bogus tax rebates and reliefs.
Mr Cowen said that the offence of "fraudulent evasion of tax" will apply to those "concerned in" that evasion. The Minister has used this wording to ensure that all those who have had a hand in an evasion are dealt with - not just the relevant taxpayer.
The original Bill makes it clear that a person who acts recklessly in relation to fraudulent evasion of tax can be guilty of facilitating that offence.
The Minister is now defining the term "reckless" to apply to situations where a person disregards a substantial risk that fraudulent evasion is taken place, such that they are culpable to a high degree. This definition is in line with existing meaning of recklessness in criminal justice legislation, for example.
The Minister's provision also ensures that where an offence is committed by a body corporate, any director, officer or manager who consented, connived or approved of the commission of the offence - or was reckless as to whether an offence was being committed - is also deemed to be guilty of the offence concerned.
The Minister is proposing that the term "recklessness" be substituted for "neglect" in this regard, so as to be consistent with the other aiding and abetting provisions of the Bill.
He said the new provisions should be seen as part of new powers and penalties available to the various regulatory bodies such as the Director of Corporate Enforcement and the Irish Financial Services Regulatory Authority.