asked the Minister for Finance whether he has investigated the problem of the black economy in the forestry industry where some estimates suggest 1,000 people are working and claiming dole and/or evading tax; and if he will make a statement on the proposal put forward by the Union of Professional and Technical Civil Servants to resolve this issue.
Written Answers. - Forestry Industry Black Economy.
106.
Tax evasion within the forestry industry has been the subject of on-going investigation over the past number of years. While it has not been possible to quantify precisely the extent of tax evasion and social welfare abuse within the forestry industry, this industry along with a number of other sectors, has been the subject of investigation by a Joint Revenue and Social Welfare Investigation Unit which was established in September 1986. The unit is staffed by Revenue and Social Welfare officers and has carried out investigations of the forestry industry and other sectors, for example, the security industry, where there is evidence of social welfare and tax abuse. In its first year of operation 148 cases in the forestry industry were investigated. The unit will continue to investigate cases in this sector.
The tax clearance scheme introduced for State Bodies awarding public contracts extends to the forestry industry. All such contracts in excess of £10,000, which are awarded by the Forestry Service of the Department of Energy and more recently by Coillte Teoranta, The Irish Forestry Board, are only available to those in receipt of a current tax clearance certificate. To obtain a tax clearance certificate, a contractor must satisfy the Collector-General that all tax liabilities, personal tax, PAYE and VAT are paid up to date.
More recently the Revenue Commissioners have established a practice of liaison with Coillte Teoranta in an effort to further combat tax abuses among contractors and subcontractors in the forestry industry.
The Union of Professional and Technical Civil Servants recently made a submission to the Revenue Commissioners setting out further proposals to combat tax evasion in the forestry sector. This submission will be given careful consideration.