asked the Minister for Finance if estimates of assessment of PAYE liabilities are now being raised for a period of six or more years; and, if so, why it was not possible to process those cases in respect of the years involved.
Ceisteanna—Questions. Oral Answers. - PAYE Estimates.
32.
Under the PAYE system of tax collection employers are statutorily required to register with the Revenue for the purpose of operating the system. They are also obliged to deduct tax from the emoluments paid to employees and to remit the tax so deducted.
Where the Revenue Commissioners have reason to believe that a person has not registered as an employer or that he is liable under the PAYE regulations to deduct and remit tax and has not remitted the tax—or has remitted insufficient tax—an estimate may be made on the person of the amount of tax which should have been deducted and remitted.
Such estimates are normally made as soon as possible after the end of the period to which they relate. Where employers have not registered or where insufficient tax was remitted, the facts may not come to light for some considerable time and estimates in such cases must necessarily cover a number of years.
The Minister's reply seems plausible enough, but is he aware that in cases where companies have submitted audited accounts to the Revenue Commissioners as far back as eight years ago, estimates are now being made for PAYE liabilities completely out of the blue and that an onus is being placed on the person receiving these notices to prove that this liability does not arise. In cases that have come to my notice the PAYE figures raised by the Revenue Commissioners equalled the amount paid in wages in the year to which it is related.
That is a very long question.
Is the Minister aware that the Revenue Commissioners are making astronomical assessments going back over many years?
The Deputy is embarking on a speech. This is not in order and the Deputy knows it is not in order.
Why is it not in order?
It is not in order to make a speech at Question Time.
I am asking the Minister if he is aware that this is going on.
I said in answer to the Deputy that I was not so aware, but I shall bring the Deputy's allegations to the notice of the Revenue Commissioners for investigation by them; and as the Deputy asked me, in replying to the second last question, to ensure that the law is enforced, I am sure he would consider it proper that the Revenue Commissioners should enforce the law in these kinds of cases as well.
May I ask the Minister if, having consulted the Revenue Commissioners, he would then have some communication with me as to the outcome of that consultation?
I shall certainly advise the Deputy of the result of my inquiries from the Revenue Commissioners.
I appreciate that, but could I ask the Minister if he is aware that in these cases to which I have referred, where assessments had been made going back as far as ten years in some cases, the Revenue Commissioners are charging a penalty of interest because the money, as they said, had not been paid.
The Deputy has already made that point.
The Deputy will appreciate that interest may be charged only on arrears of tax which are properly due.
This is something that has been snowballing. It must be due to the fact that the Government are short of funds.
The Revenue Commissioners enforce the law and are not subject to the direction of the Minister for Finance.
Is the Minister aware that astronomical assessments are being made, and that as well as the assessment a penalty is being added to it——
I have already answered that question.
——for non-payment of something which was never due? It is just not good enough.