Vol. 453 No. 4
20 Mr. E. O'Keeffe asked the Minister for Finance the new requirements, if any, of the Revenue Commissioners in respect of small companies which will no longer be required to have a statutory audit of their profit and loss accounts and balance sheets; and whether he will require the Revenue Commissioners to accept unaudited accounts without a practising accountant's report, opinion or certificate. [7231/95]
The Revenue Commissioners do not expect to have any special requirements arising from legislation to give effect to the Company Law Review Group recommendation that certain small companies should no longer be required to have a statutory audit of their profit and loss accounts and balance sheets.
The Revenue Commissioners normally insist on the submission by companies of accounts carrying whatever certification from accountants may be required by company law. If new legislation exempts small companies from the requirement to provide a practising accountant's report, opinion or certificate, the Revenue Commissioners will not, of course, insist on such endorsement on accounts submitted by those companies for tax purposes. They will however continue to expect small companies to keep proper books and records as required by tax law so that the annual returns of taxable profits are correct. These returns will of course remain within the scope of Revenue's audit and compliance programmes.
21 Mr. O'Malley asked the Minister for Finance the reason he has chosen gross current supply service spending as opposed to net current supply services spending as the measure of public spending in the 1995 budget; and if he will make a statement on the matter. [9426/95]
As the Deputy indicates, gross non-capital supply services expenditure was used in the 1995 budget to measure the increase in public spending for the purpose of the Government's commitment to restrict current spending growth to 6 per cent in 1995. Gross current spending was used as it provides a more accurate and realistic measure of what the Government actually spends and is a more appropriate and valid basis on which effective overall control on public expenditure may be exercised.
In the annual Appropriation Act, which is the statutory authority for expenditure on supply services, the Dáil approves, first, the net amount needed for each service and, second, the amount of cash receipts, known as appropriations-in-aid, which may be spent on the service. These two amounts taken together make up the gross amount of each Vote.
A gross measure of public spending is a better measure of total Government spending. Net spending reflects receipts which partially fund spending. These include the receipts of Government Departments by way of charges for services and certain EU transfers. A modest increase in net spending may mask significant increases in overall spending if there are compensating increases in Departmental receipts.
