asked the Minister for Finance the amount of VAT paid by the hotel industry to the Revenue Commissioners for the year ending 31 December 1986.
27.
Written Answers. - Hotel Industry Tax Liability.
26.
asked the Minister for Finance the total amount of VAT tax levied on the hotel industry up to the year ending 31 December 1987.
I propose to take Questions Nos. 26 and 27 together.
I am advised by the Revenue Commissioners that statistics are not compiled by the Revenue in such a manner as would enable the information requested by the Deputy to be provided.
Certain information based on statistics from non-Revenue sources can, however, be supplied. On this basis it is estimated that the total amount of VAT payable in respect of hotel accommodation and hotel and restaurant meals in the latest three calendar years is as follows:
|
Year |
Amount |
|
£million |
|
|
1985 |
53 |
|
1986 |
47 |
|
1987 |
44 |
Note: The rate of VAT on hotel accommodation was 18 per cent in the period from 1 January 1985 to 28 February 1985 and 10 per cent thereafter. The rate of VAT on hotel and restaurant meals was 23 per cent in the period from 1 January 1985 to 28 February 1986, 25 per cent in the period from 1 March to 30 June 1986 and 10 per cent thereafter.
28.
asked the Minister for Finance the total amount of PAYE collected in the hotel industry for the year ended 31 December 1987.
30.
asked the Minister for Finance the total amount of PAYE and PRSI written off in the hotel industry up to year ended 31 December 1986.
31.
asked the Minister for Finance the total amount of PAYE and PRSI due by the hotel industry to the Revenue Commissioners up to year ended 31 December 1986.
32.
asked the Minister for Finance the total amount of VAT written off by the Revenue Commissioners in the hotel industry up to 31 December 1987.
It is proposed to take Questions Nos. 28, 30, 31 and 32 together.
I am advised by the Revenue Commissioners that statistics are not recorded in such a manner as would enable the information requested by the Deputy to be provided. Such information could not be obtained without undertaking an inquiry which could be carried out only at disproportionate cost.
On the general question of the writeoff of tax, I would refer the Deputy to my reply of 12 May 1987 to a number of parliamentary questions in relation to the write-off of VAT. The general position outlined in this reply also obtains in the case of PAYE and PRSI.
29.
asked the Minister for Finance in view of the serious financial position of a number of hotels and guest-houses, if he will request the Revenue Commissioners to enter into negotiations with all owners who are in arrears of taxes to discuss with them the payment of income tax and VAT liabilities spread over a period of up to three years, in order to avoid closures of hotels and guesthouses in the run-up to the tourist season, thus avoiding mass unemployment in the tourist industry; and if he will make a statement on the matter.
I am advised by the Revenue Commissioners that an arrangement for the phased payment of arrears of tax is a concession which can be granted exceptionally and then only by reference to the circumstances of individual cases. The extension of privileged treatment on a global basis to persons coming within a particular trade classification as proposed by the Deputy could not be contemplated.
A trader who has accumulated large arrears of tax may seek negotiations with the Revenue Commissioners for the clearance of those arrears by phased payment. Provided enforcement action to recover the amounts due has not been initiated, the commissioners would be prepared to consider entering into such negotiations. Any arrangement which might emerge from the negotiations would be subject to stringent conditions as regards such matters as time span, maintaining payment of current taxes as they fall due as well as concurrently meeting on the agreed dates the instalment payments of arrears and associated statutorily imposed interest charges.