asked the Minister for Finance the estimated value of revenue collected by the anti-evasion branch in the most recent year available; the cost of operating that branch; and if he will make a statement on the future of this work.
Written Answers. - Anti-Evasion Branch.
41.
It is assumed that the Deputy is referring to the VAT Anti-Evasion Branch. The value of revenue collected by the VAT Anti-Evasion Branch in 1986 was £2,673,000. This figure does not include amounts which may have been collected in the ordinary course by the Collector-General in cases drawn to his attention by that branch. The cost of operating the branch for the year was £281,000.
The transfer of staff from the VAT Anti-Evasion Branch to the office of the Collector-General is but one of a number of measures needed to adapt the Revenue organisation from the traditional method of examining traders accounts to a system of selective auditing of records. The move was also necessary to strengthen the office of the Collector-General to enable him to mount a major drive against tax arrears. I am satisfied that additional yield will accrue to the Exchequer as a result of these measures.
It is not contemplated that less audit work will be carried out in the future. The anti-evasion outdoor work will be centralised under the Chief Inspector of Taxes who has carried out the bulk of this work in the past. The VAT inspectors in the Chief Inspector's Branch have developed a considerable expertise in this area of work over many years.