Written Answers. - Unpaid Taxes.

Proinsias De Rossa

Question:

98 Proinsias De Rossa asked the Minister for Finance the estimated amount of unpaid taxes under each tax category at the latest date for which figures are available.

I am informed by the Revenue Commissioners that the information sought is published annually in the appropriation accounts and the Report of the Comptroller and Auditor General.

The latest published figures were included in the 1988 report, and showed the position at 31 May, 1989.

I understand that the 1989 report will be published shortly.

For your convenience, relevant extracts from the 1988 report are provided as follows:

(i) PAYE:

Actual underpayments established — £m

Amounts estimated under Section 8 Finance Act, 1968 — £m

All years to

*

All years to

*

1986-87

1987-88

1986-87

1987-88

Balance

91

16

223

17

Estimate of amount likely to be collected

14

9

21

4

* Figures for the most recent year, (i.e. in this case 1988-89) are not provided because the annual P35 return is not due until 30 April each year, and the full extent of the liability for the year would not be established by 31 May.
(ii)VAT:

Amounts estimated underSections 22 and 23

Actual underpayments established — £m

Value Added Tax Act 1972 (Estimates under Section 22 in brackets)

All years to 1986

1987

1988

All years to 1986

1987

1988

Balance

152.3

28.7

33.8

138.8

12.1

7.7

(208.7)

(81.2)

(139.3)

Estimate of amount likely to be collected

40

17

27

28

3

3

(20)

(11)

(20)

(iii)Income Tax (excluding PAYE):

All years to 1986-87

1987-88

1988-89

Balance

577

144

252

Estimate of amount likely to be collected:

45

20

55

(iv) Corporation Tax:

Balance

314

121

516

Estimate of amount likely to be collected:

20

15

130

(v) Capital Gains Tax:

Balance

43

9

19

Estimate of amount likely to be collected:

4

1

4

It should be noted that the balance outstanding in the case of each of the taxes includes amounts under appeal or inquiry, not disputed then but likely to be the subject of claims for admission of late appeals or revision on submission of returns, under demand or enforcement, and/or not likely to be collected.
In effect therefore the difference between the balance and the amount likely to be collected is largely accounted for by anticipated reductions of estimated amounts included in the balance. Self-assessments for individuals and companies will have a beneficial effect on the figures in future years.