ONE investigation by the Revenue Commissioners discovered underpaid taxes of £490,000 - but no funds were recovered from the taxpayer.
The taxpayer was assessed in 1992 as owing VAT of £300,000 and PAVE/PRSI of £190,000. The assessments were appealed. The Revenue Commissioners considered that there was evidence of fraudulent evasion of tax and referred the case to the Garda in May 1992.
A Garda investigation started in the assessment unit of the fraud section. Hearing of the appeals was delayed pending the outcome of the investigation. Pressure of work in the fraud section resulted in the case being referred to the local Garda superintendent. The investigation was completed and submitted to the Director of Public Prosecutions in June 1994.
In August 1994, the DPP said a criminal prosecution was unlikely to be successful, due to the delay in completing the investigation.
Meanwhile, in 1993, property owned by the taxpayer was sold by the bank which was holding it as security against a loan. In February 1995 the taxpayer told the Revenue he had no assets to pay the tax debt.
Between 1990 and 1994 some 20 cases of suspected tax evasion and fraud were referred to the Garda for investigation. Only one case of tax fraud reached the courts, according to the report.