Declassified Files: Dublin spad said tax evasion viewed as morally justified

A file declassified at the Public Record Office in Belfast under the 20 year rule contains a restricted memo from Simon Buckle in the British Embassy in Dublin which was copied to the NIO.

The diplomat recorded a conversation with Finance Minister Ruairi Quinn’s special adviser, Brendan Lynch.

The November 1, 1996 note relaying the contents of their conversation to the NIO said that the adviser had discussed Ireland’s priorities for EU funding.

“He said that if it came to a trade-off between CAP [farm subsidies] and other Structural Funds support, the Department of Finance (and probably the government too) would prefer to have the Structural Funds.

“At least this money was invested in productive projects of benefit to the whole country.

“Lynch was convinced (and he should know) that much of the CAP money ended up in undeclared bank accounts in the Isle of Man or Jersey.”

The diplomat added: “He admitted that there was a tendency for people in the regions to look to get as much money from central government as they could but to regard the Irish government in much the same way as the British ‘colonial’ government.

“They therefore saw tax evasion as morally justified and the extent of the black economy was significant.”