asked the Minister for Finance the estimated level of unpaid taxes in the financial year ended April 1982 under each of the tax categories.
Written Answers. - Unpaid Taxes.
277.
The table attached shows the balances of tax outstanding (including PRSI) as at 31 December 1982, in respect of the year of account 1981-82. In collection/enforcement terms, 1981-82 is a very recent year and there is, accordingly, a high degree of estimated liability reflected in these figures.
Taxes/PRSI outstanding for year of account 1981-82
Figures as at 31/12/82
|
Distribution of Balance Outstanding |
||||||
|
Balance Outstanding |
Under appeal or inquiry |
Not in dispute (awaiting demand) |
Under Demand |
With arrears section |
Under Enforcem ent |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
VAT |
70.6 |
16.8 |
13.1 |
17.9 |
— |
22.8 |
|
PAYE |
28.4 |
5.2 |
4.7 |
12.7 |
.03 |
5.8 |
|
PRSI |
24.6 |
4.3 |
4.4 |
10.1 |
.05 |
5.7 |
|
Income Tax (self-employed) |
385.1 |
262.8 |
6.4 |
107.5 |
1.8 |
6.6 |
|
Corporation Tax |
278.5 |
229.5 |
3.6 |
32.3 |
1.9 |
11.2 |
|
Capital Gains Tax |
16.8 |
11.5 |
0.4 |
1.1 |
— |
3.8 |
|
Capital Acquisitions Tax |
2.1 |
278.
asked the Minister for Finance the number of legal actions that have been initiated during the past 12 months in order to recover unpaid taxes; the sums of money involved; the number of such actions that have been settled out of court; the proportion of the original assessments that were thereby recovered; the number of convictions obtained for evasion; the amount of tax thereby recovered; and the level of fines imposed by the court.
The number of legal actions initiated in the past 12 months and the face value of the instructions/certificates involved are shown in the attached table.
Most court actions are terminated before the judgement stage but exact figures are not readily available. Statistics are not available to indicate the proportion of original assessments recovered by legal action but the total tax yield for 1981-82 represents 69.9 per cent of the original tax charge for that year.
Following is the table:
I — Enforcement action initiated in 1982.
|
Court action via Solicitors |
Action under Section 485 ITA 1967 via Sheriffs and Co. Registrars. |
|||
|
Number |
Amount £m |
Number |
Amount £m |
|
|
VAT |
330 |
21 |
16,790 |
99 |
|
PAYE/PRSI |
422 |
28 |
18,704 |
135 |
|
Income Tax (self- employed) |
1,769 |
14 |
7,297 |
13 |
|
Corporation Tax |
491 |
7 |
3,660 |
23 |
|
Capital Gains Tax |
203 |
3 |
— |
— |
II — Proceedings in 1982 in relation to evasion, etc.
Proceedings for failure to lodge statutory returns for income tax, corporation tax, PAYE/PRSI and VAT were ordered in 2,842 cases and penalties amounting to a total of £176,709 were imposed in 705 cases. The probation Act was applied in a further 118 cases. The great majority of cases, however, have not yet come to hearing. Convictions were obtained in two cases involving failure to keep or produce records for VAT purposes and fines (based on continuing failure) totalling £4,900 were imposed.
Sections 501 and 502 of the Income Tax Act, 1967, provide for the imposition of monetary penalties where a person fraudulently or negligently delivers an incorrect return for income tax purposes. Proceedings under these sections for negligently furnishing incorrect returns of income were initiated in three cases involving penalties totalling £36,000. Of this amount £1,800 has been paid in one case, without a court hearing, and the other cases have not yet been finalised.
In proceedings under section 516 of the Income Tax Act, 1967, against a landowner for delivery of a false statement in connection with his tax affairs the defendant was convicted and given a suspended sentence of one month's imprisonment.
Proceedings against a retired bank official for conspiracy to defraud the Revenue are in abeyance pending the hearing of an appeal by the defendant to the Supreme Court against a decision of the High Court that the hearing should proceed in the District Court.
Records are not kept in such a way as to indicate the amount of tax recovered as a result of court proceedings for penalties.