Annual Report 2007

Tax Clearance

Tax Clearance Provisions - Elected Members

Members elected to Dáil Éireann and Seanad Éireann during 2007 were required to provide evidence of tax compliance to the Standards Commission within nine months of the date on which they were declared elected. Where a member failed to provide the evidence of tax compliance within the time limits specified, it was a matter for the Standards Commission to decide whether to investigate the matter and to provide any ensuing report to the Committee on Members' Interests of Dáil or Seanad Éireann, as appropriate. It would be a matter for each Committee on Members' Interests, if such a report was provided to it by the Standards Commission, to lay the investigation report before the relevant House. At the time of writing, the question of compliance with these provisions by members elected in 2007 was under consideration by the Standards Commission.

Position in relation to former Deputy Michael Collins

In its annual reports for 2003, 2004 and 2005, the Standards Commission set out the position in regard to former Deputy Michael Collins and steps taken by him arising from the requirements of the 2001 Act relating to evidence of compliance with the Tax Acts. In summary, Deputy Collins provided a Tax Clearance Certificate and a Statutory Declaration to the Standards Commission on 14 June 2002 in fulfilment of these requirements. Subsequently, on 26 September 2003, his name was published in Iris Oifigiúil as the holder of a bogus non-resident account. The Standards Commission did not have any powers, in the absence of a complaint, to investigate the actions of Deputy Collins, as a member of Dáil Éireann who was not an office holder. It brought the matter to the attention of the Committee on Members' Interests of Dáil Éireann as the body which, under the Ethics Acts, is charged with the supervision of the Ethics Acts relating to members of Dáil Éireann who are not office holders. The Standards Commission also referred the matter to the Director of Public Prosecutions (DPP) for his consideration of whether any offence had been committed by Deputy Collins.

Subsequently, the Committee on Members' Interests of Dáil Éireann determined by resolution that an investigation should be carried out by the Standards Commission. The Chairman of the Committee made a complaint in writing to the Standards Commission in relation to the matter. Investigation of the complaint by the Standards Commission commenced and Deputy Collins was notified accordingly. In addition, the Office of the DPP indicated to the Standards Commission that it had referred the matter to An Garda Síochána for investigation.

In June 2004, having considered views expressed in correspondence from the DPP and also observations made to it by Deputy Collins, the Standards Commission decided to suspend its investigation of the complaint until such time as the matter had been dealt with by the DPP. In September 2007, Mr Collins pleaded guilty to a charge of obtaining a tax clearance certificate by false pretences. He was fined €25,000 and given a 12-month suspended jail sentence.

The Standards Commission considered whether the investigation, which had been suspended, ought to be resumed. It decided not to proceed with its investigation as Mr Collins had ceased to be a member of Dáil Éireann. It notified Mr Collins and the Committee on Members' Interests of Dáil Éireann of its decision not to proceed with the investigation.

Tax Clearance Provisions - compliance by appointees to senior office

The Standards Commission wishes to reiterate the need for public service bodies to ensure that they put in place procedures to identify directorships or positions which would fall within the definition of "senior office" and to notify appointees to such positions of their obligations, preferably at the time an offer of appointment is being made.

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