‘AIB lodged our tax while helping the rich avoid it’

FIANNA Fáil have branded revelations in the Paradise Papers that AIB was involved in helping clients avoid tax by offshoring data and funds as ‘disturbing’

The party’s finance spokesman Michael McGrath said the bank had facilitated individuals and companies in avoiding paying tax owed to the Irish State by hiding funds and data in other jurisdictions.

Leaked documents show that AIB, Ireland’s largest bank, continued to target Irish customers who wanted to avoid paying tax after it had been bailed out by the taxpayer to the tune of €3.5billion in 2009.

The files from offshore law firm Appleby show that the bank refused to give the Revenue Commissioners, access to data from its customers with the Isle of Man-based AIB ISL and the AIB CI in Jersey, in response to a court order in 2015.

Instead, they sought to have the data moved from the bank’s central server in the Republic to Jersey and the Isle of Man, to better protect clients’ confidentiality.

An AIB spokesman told the Irish Daily Mail that AIB ISL and AIB CI were wound down in November 2013 and that they had no legal entitlement to hand over data owned by the firms. They said: ‘As separate legal entities to AIB plc, data belonging to AIB ISL Limited and AIB CI Limited has always been under their ownership and control.

‘AIB was not legally entitled to hand over data owned by AIB ISL or AIB CI.

‘Any such disclosure would have been in breach of the data protection laws in the relevant jurisdictions.’ But Deputy McGrath said: ‘It is deeply disturbing that AIB seemed to have protected vital data from the Revenue Commissioners in jurisdictions like Jersey and the Isle of Man all with the intention of avoiding tax.

‘What is even more shocking is the fact that this was still happening despite the taxpayer bailing the bank out.

‘It is extremely serious that the bank received bailout money from the taxpayer on the one hand and at the same time, was actively assisting individuals and companies in avoiding paying tax on the other.

‘AIB needs to come clean and publicly issue a statement on the revelations in the Paradise Papers. Many questions remain to be answered.

‘First of all, it is not clear whether AIB eventually acceded to demands from the Revenue Commissioners for details on individuals held in its operations in Jersey and the Isle of Man.

‘AIB also needs to clarify whether they actively shifted data to offshore jurisdictions in order to prevent the Revenue Commissioners from accessing it.’

Deputy McGrath also called on Finance Minister Paschal Donohoe to clarify if and when he, or his predecessor Michael Noonan, became aware of such operations and if the Government – as the bank’s majority shareholder – had acted to stop them.

Taoiseach Leo Varadkar sought to downplay the controversy yesterday, saying he understood ‘from statements issued by the two major banks today that those international subsidiaries were closed in 2012 or 2013.

‘Obviously, this is a story that’s evolving and we’ll pay close attention to it,’ he added.

Yesterday, Minister Donohoe said the Revenue Commissioners would be reviewing the Paradise Papers as they are published in the coming days.

‘Protected vital data from Revenue’