Vol. 428 No. 1
139 Mr. Gregory asked the Minister for Finance if when persons on taking up employment hand their P45 to their employer, there should also be a separate form to be submitted to the Revenue Commissioners as a safety precaution for the employee so that offending employers will be quickly exposed should they fail to send on the necessary deductions.
I am informed by the Revenue Commissioners that the introduction of an additional form on the lines suggested by the Deputy would add to the costs of administration without making an effective contribution to compliance.
The regulations governing the PAYE system are designed to ensure that employers make appropriate PAYE deductions and pay over these amounts to the Revenue Commissioners. Where changes in employment occur the new employer is obliged to notify the tax office of the new employee, to make the necessary deductions and to pay over these amounts monthly to the Revenue Commissioners. In practice the vast majority of employers comply with their obligations. Audit programmes operate to detect non-complying employers and to ensure that the PAYE/PRSI system operates properly. These audit programmes are currently being extended. The Revenue Commissioners consider that effective auditing is the most appropriate way of encouraging compliance and ensuring that non compliant taxpayers are detected and pursued.
