Vol. 412 No. 5
72 Mr. Farrelly asked the Minister for Finance when a decision was taken that amounts due to farmers, by way of headage/premium payments and grants should be offset, without notice to the farmers concerned, against the amounts due by them on foot of taxes owed to the Revenue Commissioners and if he will make a statement on the matter.
I am advised by the Revenue Commissioners that the Deputy's question may relate to the power of attachment which was provided for in section 73 of the Finance Act, 1988. Attachment is one of a number of enforcement options available to the Revenue where the taxpayer fails to comply on a voluntary basis. The legislation allows the Revenue Commissioners to attach amounts owed by a third party to a defaulting taxpayer. The third party is directed to pay to the commissioners the amount of tax due from the defaulter.
In advance of taking attachment action in a particular case, the taxpayer is formally notified in writing of the Revenue's intention to undertake enforcement action. Specific reference is made in this notice to the power of attachment. In the event that the taxpayer fails to respond to this demand with a reasonable proposal for payment of his-her liabilities the Revenue issues the notice of attachment to the relevant third party. Simultaneously a copy of the notice of attachment is served upon the taxpayer.
Since its introduction, the power of attachment has been invoked against a wide cross-section of occupational groups, including non-compliant farmers in relation to headage-premium payments and grants from the Department of Agriculture. The above procedures as regards notice have been followed in all cases.
