asked the Minister for Finance the steps taken by the Revenue Commissioners to ensure that all persons who render services to the public, whether professional or otherwise, give a fair and factual return of income for tax assessment; and if he is satisfied that tax avoidance is at a minimum.
Ceisteanna—Questions. Oral Answers. - Tax Evasion.
59.
While the Deputy's question refers to tax avoidance— which is a matter of arranging one's affairs, within the law, so as to reduce the tax otherwise payable—I assume from the context that he is concerned with the question of tax evasion.
The main weapon against tax evasion is the obtaining of accurate information as to the incomes of taxpayers. Over the past 12 years various items of legislation have been enacted to enable the Revenue Commissioners to obtain such information. The provisions include:
(a) a mandatory requirement on persons engaged in a trade, business or profession to keep adequate records;
(b) a right by the inspector of taxes to inspect books and accounts relating to the transactions of a trade or profession;
(c) a requirement on traders to give information on fees, etc., paid to persons not employed in the trade; and
(d) a scheme whereby payments to sub-contractors in the construction industry may be taxed by deduction.
In addition, the assessment of persons in the Dublin area engaged in vocations and professions has been centralised in a single tax district for a number of years with a resulting standardisation of treatment.
While the provisions outlined go a considerable way towards reducing tax evasion, there will always be areas where additional measures may be needed. This matter is kept constantly under review and further steps may be introduced as appropriate.