Tony Killeen
Question:7 Mr. Killeen asked the Minister for Finance the bonus payments, if any, paid to inspectors of taxes who carry out revenue audits on small and medium businesses. [14449/95]
Ceisteanna-Questions. Oral Answers. - Revenue Audits.
Inspectors of taxes who carry out revenue audits on small and medium sized businesses are not paid bonuses in respect of such audits.
Is the Minister satisfied that the system of carrying out revenue audits is effective? Has he had any complaints about excessive zeal or unwarranted intrusion during such audits?
I will answer the Deputy's second question first. I have had no such complaints. The Revenue Commissioners have indicated, during the course of regular discussions which I have with the Commissioner and Deputy Commissioners, that there is an increasing level of compliance in the taxation system. Part of that is related to the effectiveness of the audits. If the Deputy has a particular concern, he should bring it directly to the attention of the Chairman of the Revenue Commissioners.
Is the Minister's reply categorical or are there instances in which bonuses are paid to inspectors of taxes in respect of other activities, depending on the yield of their activities?
My reply, carefully worded as all such replies are, refers to inspectors of taxes who carry out revenue audits in small and medium sized businesses. The Deputy may be referring to some activities by customs officers and these are in the course of being phased out. My understanding is that inspectors of taxes who carry out revenue audits are not paid bonuses in respect of such audits.
I would be amazed if they were — and am sure they are not — because that would bring the system into disrepute. I agree with the Minister that this system has worked well. As the Revenue Commissioners said, the level of compliance since 1989 has been increasingly evident in the returns. Deputy Killeen may mean that in certain parts of the country there is no uniformity between inspectors of taxes who carry out audits. Some people may believe that targets are set for different units of the tax system and that certain inspectors of taxes may be over zealous in trying to ensure they get their yield by the end of the month or the quarterly period. Some inspectors may have the attitude that people must pay whether they owe it or not because they must get a certain amount of money by the end of their target period. However, in general, revenue officers are very helpful and the system has worked well.
In response to the question by Deputy McCreevy, no specific targets are set. The objective of the excercise is to ensure that the taxpayer pays the amount due and nothing more. The process is subject to guidelines and controls and is monitored closely by Revenue management. If individuals feel they have a grievance, Members, in their capacity as public representatives, should bring it to the attention of the Revenue Commissioners. I do not have a role in that regard.
I welcome the Minister's statement that targets are not set because it was believed in certain parts of the country that they were.
This is leading to argument. As this is Question Time, I proceed to Question No. 8.