Unauthorised bank's clients face prosecution - Ahern
Some of the country's wealthiest citizens who evaded tax by lodging money in an unauthorised banking system will not escape prosecution, the Taoiseach suggested today.
Despite comments by High Court inspectors and the Justice Minister that some clients would escape the law, Mr Ahern said investigations into the illegal operation of Ansbacher (Cayman) should be ‘‘brought to fruition’’.
A report, published on Saturday, described the Dublin operation, which had 190 clients as ‘‘little more than a charade, a sham and a legal fiction’’.
The report found that some of the richest and most powerful people and businesses in Ireland used Ansbacher between the early 1970s and late 1990s to dodge tax.
Following a three-year investigation, High Court-appointed inspectors detailed evidence ‘‘tending to show that Ansbacher was guilty of a number of criminal offences’’ including conspiracy to defraud tax authorities.
Earlier today, the High Court gave Justice Minister Michael McDowell two weeks to apply to recoup from Ansbacher’s corporate clients the €3.2m (£2m) cost of investigating the scam.
And lawyers for the Director of Corporate Enforcement, Paul Appleby, told the court’s President Mr Justice Finnegan, that he intended to view background documents which were not included in the 15-volume report.
Mr Appleby will then decide whether to prosecute Ansbacher clients, although the inspectors stressed that not all of those named in the report had been guilty of evading tax.
Some of the names mentioned in the background papers, which Mr Justice Finnegan today ruled should be put into the care of the Courts Service, were not included in the published report.
Despite suggestions that prosecutions were unlikely to succeed Mr Ahern said today: ‘‘People said there would never be a report, people said nobody would be named, people say things and they are usually wrong on these issues.
‘‘The Revenue has the powers and Mr Appleby is also getting all the working papers. I think that people should see that these things are brought to fruition.’’
He added: ‘‘I think the Revenue will have an interesting period with the reports.’’
Mary Harney has also insisted that tax evaders will not be able to get away ‘‘scot free’’.
She described the report as ‘‘a damning insight into a world of conspiracy, fraud and tax evasion over a long number of years’’.
Speaking yesterday she said it was ‘‘unlikely’’ that Ansbacher was the only scam of its kind in Ireland.
Mr Appleby added that where prosecutions were feasible, he would pursue them.
The Dail, is due to come back from summer recess on Thursday to discuss the contents of the report.
