Does a bank have a right to investigate a customers tax affairs?

I

Ireland.1

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Hi, I could to with advise please. My brother and sister-in-law have accumulated mortgage arrears because their business is not doing as well as it should be because of the economic downturn.

They have always ran a tight ship as far as their tax returns go but have not returned accounts for the year 2012 but will return them before the deadline.

The bank are now looking for figures, so they have no option but to call their accountant to audit their accounts. The bank are also looking for an undertaking from revenue that my brother and S-I-L have no tax liabilities.

What's bothering them, is a comment made by the bank manger, that if their tax affairs are not in order he will report.
 
This is a legitimate question being raised by the Bank and by no means new.

It is very much their business as Revenue is a preferential creditor and as such rank ahead of the Bank if this business is ever wound up or if Revenue slap an attachment order on the account for non payment of taxes.

It is more unusual to see it asked if there is only mortgage arrears but maybe this relates to their business account with the Bank also, please clarify.
 
Thank you.

There is mortgage arrears but their business dealings are with an entirely different institution. No over draft, no business loans etc. They have a very good track record with Revenue.
 
The bank has a right to seek confirmation of a borrower's tax position.

They have no right to publicise the existence of a borrower's tax liability or report or communicate this to a third party. This would be a breach of confidentiality and presumably also the Data Protection Act.
 
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