asked the Minister for Finance the estimated indirect grants available to firms in the past three years by reference to PAYE income tax revenue not returned by insolvents.
Written Answers. - Firms' Indirect Grants.
159.
Normally there is a considerable lapse of time before outstanding PAYE returns are furnished in insolvency cases. Figures are not available to show the amounts due under PAYE in the past three years by reference to the dates of insolvency. However, the aggregate amount due for all tax years as at 31 May 1981 and the totals for the more recent tax years as at that date are as follows:
|
Aggregate amounts for |
£000 |
|
(i) all tax years: |
3,281 |
|
(ii) tax year 1980-81: |
224 |
|
tax year 1979-80: |
1,298 |
|
tax year 1978-79: |
643 |
|
tax year 1977-78: |
338 |
It is to be expected that the figure for the year 1980-81 will increase for some time to come as also will the figures for the years 1979-80 and 1978-79, but to a proportionately lesser extent, because the unpaid tax referable to the latter two years tends to diminish with the passage of time.
The eventual loss to the Exchequer in respect of PAYE due in insolvency cases can reasonably be expected to be considerably less than the total tax outstanding as ascertained at any given time. Substantial payments are usually received from the distribution of the proceeds of the sale of assets as the PAYE due for the 12 months prior to insolvency enjoys preferential status.
It must be emphasised that there is no question of countenancing the retention of moneys due under PAYE so as, in effect, to provide what are described as indirect grants to firms in financial difficulties. Every effort is made by the Revenue Commissioners to carry out their statutory obligations and to collect amounts due under PAYE as soon as possible after the due dates.