We need to know who pays up... and doesn’t

UNTIL now, tax avoidance schemes seemed to belong to a different universe. Virtually all of us will have seen them as the preserve of a very wealthy elite: the billionaires, the business magnates, the hotshot lawyers and other high-net-worth individuals.

It is also likely that few among us ever gave these schemes much thought, given that they have always appeared to be so far removed from our everyday lives. But we now see that they are actually more common than we realised.

That three members of the cast of Mrs Brown’s Boys allegedly diverted more than £2million to an offshore fund in Mauritius comes as a surprise. There are at least two reasons why this should be the case.

The first is that the actors in question are familiar faces whom we welcome into our front rooms on a weekly basis. The second is that the show’s roots in quintessentially working-class Dublin life could hardly have less in common with the world of sharpsuited financial advisers.

Nonetheless, this development raises some timely questions. Even if it remains unspoken, the basic contract between the State and its citizens is understood by all.

Our side of the deal is that we pay taxes on income, goods and services. In return, we are entitled to expect access to hospitals, schools, public transport, proper roads, safe streets and so on. So far, so straightforward. But it becomes an issue when people or businesses want to enjoy the benefits, but aren’t prepared to pay the costs that come with them.

It is a complex area. No-one goes out of their way to hand over too much money to the Revenue Commissioners – and, as anyone who has ever filled out a tax return form will be aware, it is a basic human instinct to try to minimise one’s liability.

But while there are certainly questions to be asked about the role played by AIB in similar schemes, we also need to take a look at the bigger picture.

Specifically, it is crucial that we face up to the implications of tax avoidance in terms of hospital waiting lists, substandard school buildings, pot-holed roads and fewer gardaí on the beat.

The time has come for a national conversation on this matter. The first step needs to be an investigation into how many people are availing of tax avoidance schemes and who exactly they are.

Only then can we start ensuring that everyone pays their fair share.