asked the Minister for Finance if his attention has been drawn to the fact that certain irregularities took place within the construction industry with regard to the procurement and use of exemption certificates for sub-contractors; if he is in a position to indicate the amount of tax revenue that was lost; if he will outline the steps he has taken in conjunction with the Revenue Commissioners to ensure that this kind of irregularity will be prevented in the future; and if he will make a statement on the matter.
Written Answers. - Irregularities in Construction Industry.
20.
I have been advised by the Revenue Commissioners that there have been serious irregularities in the past in the operation of the construction industry tax legislation by principal contractors and sub-contractors.
Procedures have been tightened up and in order to combat abuse the operation of the relevant legislation is closely monitored by the various tax districts and, when the abuses are detected, appropriate action is taken against the persons concerned. The Revenue Commissioners are not aware that there has been any significant number of irregularities in this area in recent years. By way of illustration, during the past twelve months, out of a total of 6,000 certificates issued, the Revenue Commissioners have knowledge of only five cases in which irregularities arose in the use of sub-contractors certificates. Investigations are proceeding in those cases. The estimated maximum loss of revenue involved could amount to £350,000, which could be reduced to some degree, depending on the outcome of the investigations. If the Deputy has specific information which would suggest further irregularities, I will have the matter investigated on receipt of the necessary details.