Dáil Éireann debate -
Thursday, 18 Apr 1991

Vol. 407 No. 2

Written Answers. - Uncollected Tax.

Joe Sherlock

Question:

32 Mr. Sherlock asked the Minister for Finance the total estimated amount of uncollected taxes outstanding at the latest date for which figures are available; the proportion of this which is likely to be eventually collected; the steps, if any, which are being planned to improve collection procedures; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

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 1989 report and showed the position at 31 May 1990.

For the Deputy's convenience, relevant extracts from the 1989 report are provided in the following tabular statement.

I am informed by the Revenue Commissioners that the following improvements were put in place in the post amnesty period and provide a foundation for further advances:

—intensive monitoring and, where necessary, pursuit of those larger payers accounting for the bulk of tax receipts

—vigorous caseworking of entrenched arrears with resultant adjustment to estimated liabilities and, where warranted, enforcement action

—self-assessment of income tax and corporation tax with resources moved to the non-compliant taxpayer

—improved quality and timeliness in the material referred to the sheriffs

—increasing vigour in the use and scale of the attachment operation

—the annual return scheme for VAT and PAYE/PRSI has allowed Revenue to use their collection and enforcement resources more cost effectively.

(i) PAYE

Unpaid Taxes (at 31 May 1990)

	Actual underpayments established —£m	Amounts estimated under section 8 Finance Act, 1968 — £m
	All Years to 1987-88	1988-89*	All Years to 1987-88	1988-89*
Balance	98	20	224	11
Estimate of Amount likely to be collected:	15	11	21	3

*Figures for the most recent year, (i.e., in this case 1989-90) 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

	Actual underpayments established — £m	Amounts estimated under sections 22 and 23 Value Added Tax Act, 1972 (Estimates under section 22 in brackets) — £m
	All years to 1987	1988	1989	All years to 1987	1988	1989
Balance	167.5	29.8	36.8	144.6(215.3)	12.4(47.6)	7.7(99.9)
Estimate of Amount likely to be collected:	42	18	30	28(20)	3(7)	3(14)

	All years to 1987-88	1988-89	1989-90
(iii) Income Tax (excluding PAYE) Balance	547	124	184
Estimate of Amount likely to be collected	44	19	44
(iv) Corporation Tax Balance	304	128	158
Estimate of Amount likely to be collected	18	18	25
(v) Capital Gains Tax Balance	41	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 are an amalgam of the following:

—liabilities under collection and enforcement action

—liabilities under appeal or inquiry

—liabilities likely to be subject of a claim for late appeal or revision upon submission of returns

—amounts not likely to prove collectible.

In essence, a substantial proportion of the difference between the balance on record and the amounts likely to be collected is attributable to the anticipated reduction of liabilities which, of necessity, had to be estimated.