Revenue doing a trawl of foreign Bank transfers going back to 1998?

yehbut_nobut

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An association I work with makes an annual transfer to headquarters in Switzerland each year.

This week a letter arrived from our bank stating
"The revenue Commissioners are currently conducting a review of transactions made by Irish residents with off shore financial institutions, specifically where money was transferred to or from the jurisdictions of Switzerland, Lichtenstein, the Isle of Man, jersey and Guernsey."
The letter goes on to state that the Bank "was ordered by the High Court to hand over specific information concerning customer falling within the scope of the order" in December 2009.

They state that they are obliged to hand relevant over information on customers in the following timescale:
• Transactions for 1/1/07- 31/12/08 must be handed over by 30 September 2010

• Transactions for 1/1/05- 31/12/06 must be handed over by 31 December 2010

• Transactions for 14/4/98 - 31/12/04 must be handed over by 31 July 2011
Concerned persons may apply to the High court about this procedure, and the relevant details are given on how to go about this.

The association I'm working with has nothing to worry about, but will there be significant consternation among the "respect your betters" class, especially with the order relating to transfers going back to 1998 which falls due next year?

My prediction: expect "developments"
 


firefighter

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The State is not entitled to know about someone's private banking affairs in another sovereign nation.
 

yehbut_nobut

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The State is not entitled to know about someone's private banking affairs in another sovereign nation.
Apparently, (according to the order) they are if you're transferring money in or out of this state.


edit: for the legal minded, the legislation quoted is: Section 908 of the Taxes Consolidation Act 1997 (as substituted by section 207 (1) of the Finances Act 1999)
 

Paddythai

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Revenue have few choices but to go after the middle and uppermiddle classes for money. Chasing failed businesses and the now unemployed self employed is not always worth the trouble and expense. Go after the guys who made the cream during the boom time and moved it overseas for un-ethical reasons.

I do however, wonder what they can do to these people if they are found to have been evading tax. The money is overseas. How can revenue make them pay any taxes due.
 

Cassandra Syndrome

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And what is this going to achieve? Keeping the Anglo furnace going?
 

Squire Allworthy

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Revenue have few choices but to go after the middle and uppermiddle classes for money. Chasing failed businesses and the now unemployed self employed is not always worth the trouble and expense. Go after the guys who made the cream during the boom time and moved it overseas for un-ethical reasons.

I do however, wonder what they can do to these people if they are found to have been evading tax. The money is overseas. How can revenue make them pay any taxes due.

They will only catch the fools or lazy. There are often reciprocal agreements between countries on such matters. Anyone transferring money out of a bank in jurisdiction A into their account in Jurisdiction B where they want to hide it must have the IQ of an earth worm. Even better many who do so have assets remaining in jurisdiction A.
 

Paddythai

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'Bring a prosecution?'

But the Judicial system has not taken too many of our wealthy elite to court for tax evasion in the past. Where they have taken people to court few cases are successful.

I agree that only the lazy and foolish will have openly moved money abroad. The clever people will have moved money in more complex methods and will maybe never be found out.
 
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Revenue have few choices but to go after the middle and uppermiddle classes for money. Chasing failed businesses and the now unemployed self employed is not always worth the trouble and expense. Go after the guys who made the cream during the boom time and moved it overseas for un-ethical reasons.

I do however, wonder what they can do to these people if they are found to have been evading tax. The money is overseas. How can revenue make them pay any taxes due.
It is surprisingly easy to chase money down overseas even collect it.

As for making them pay any tax due well they are still citizens of the state so easy enough to tackle that.

As for moving abroad the Rev Commissioners plus every other EU Govt are happily supplying details to each other where tax evasion is suspected because Irish citizens going to Spain to avoid tax plus German citizens doing similar will also have Spanish and others doing the opposite.

Lots of unpaid tax out there and Govt happily cooperate on a quid pro qup basis.

Anybody who has undeclared property in Spain or elsewhere should be aware of this as well.
 
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'Bring a prosecution?'

But the Judicial system has not taken too many of our wealthy elite to court for tax evasion in the past. Where they have taken people to court few cases are successful.

I agree that only the lazy and foolish will have openly moved money abroad. The clever people will have moved money in more complex methods and will maybe never be found out.
Really ?

The millions recovered each quarter suggest otherwise.
 

DCon

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Why have they not included Austria???

http://www.politics.ie/economy/138748-curious-tale-anglo-irish-bank-its-austrian-deposits.html

The sale of Anglo’s Austrian business was completed on December 19, 2008, the day after FitzPatrick resigned as chairman after his dodgy loan dealing had been uncovered.

..the Valartis annual report reveals that the Austrian operation manages about 1.6 billion Swiss francs (€1.25 billion) for about 4,000 private banking clients.

Those clients can now remain very private indeed, far away from the scrutiny of the Irish state which stepped in and nationalised Anglo Irish Bank in January 2009 in the wake of revelations about FitzPatrick concealing large loans from his shareholders.

One of the big advantages of having money on deposit with an Austrian bank is that the identity of depositors cannot be disclosed to the authorities, as Austria enjoys certain derogations from the EU Savings Directive. This was and remains a key attraction for those who deposit funds in Austria. [...]
 

DCon

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They said that about Liechenstein and only took £250k for all the details to appear on a DVD to German tax authorities.

Just because a Govt has a policy doesn't mean someone can't access the data.
But nobody in the Irish establishment will want to access Anglo Austria.

They will all be very aware of the money that flowed there from Anglo Dublin, and why. The funds have probably moved on from Austria anyway..
 

goosebump

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I suppose this will be portrayed as another attack on the 'ordinary working man'.

"Joe, we bought a holiday home in Spain, you know, for the kids. They love it, they do, what with de pool and all dat. And now the Government wants to know where we got da money? Why don't they go after the bankers, and stop attacking little children? Why, Joe, why?"

"Sure, sure."
 
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But nobody in the Irish establishment will want to access Anglo Austria.

They will all be very aware of the money that flowed there from Anglo Dublin, and why. The funds have probably moved on from Austria anyway..
You really are nieve.
 
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I suppose this will be portrayed as another attack on the 'ordinary working man'.

"Joe, we bought a holiday home in Spain, you know, for the kids. They love it, they do, what with de pool and all dat. And now the Government wants to know where we got da money? Why don't they go after the bankers, and stop attacking little children? Why, Joe, why?"

"Sure, sure."
If money legally earned and fully taxed and income from it declared they why would anybody be worried.
 

MPB

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A lot of Developers had set up companies registered abroad and their profits were booked in these companies. As long as this money never touched an Irish Financial Institution, they were exempt from tax, but yet they could borrow from an Irish Financial Institution on the strength of the profits held off shore.

These borrowings were then invested and the profits booked to the offshore company and the whole thing happened again and again.

If Colm Kenny wants to know where the money went, these offshore companies would be a good place to start.
 

DCon

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You really are nieve.
The spelling is naive, and I am not.

If you can explain why FF nationalised Anglo, and what steps they put in place after nationalisation to prevent individuals with large loans from Anglo from removing large Deposits I will accept I am wrong.
 
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The spelling is naive, and I am not.

If you can explain why FF nationalised Anglo, and what steps they put in place after nationalisation to prevent individuals with large loans from Anglo from removing large Deposits I will accept I am wrong.
Your 4 Legs good 2 Legs bad syndrome is flawed from the start as you assume that what you cunningly refer to as "The Establishment" is like The Borg collective with similar views on everything.
 


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