Written Answers. - Random Audits.

Kathleen Lynch

Question:

36 Kathleen Lynch asked the Minister for Finance the estimated loss in revenue caused by the lack of random audits that were carried out in 1993 due to the pressure on resources in view of the tax amnesty; and if he will make a statement on the matter. [8598/96]

I have been informed by the Revenue Commissioners that there was no material impact on overall tax revenues arising from the lack of a random audit programme in 1993. In fact, tax yields from random audits are significantly lower than the yields from targeted audits.

The level of random audits being undertaken has a useful role to play and will build up a significant sample over time. The Revenue Commissioners plan to keep the number of random audits each year at their present levels. However, the Commissioners advise that the risk-based targeted audits are the more effective method of influencing general compliance levels without adding to compliance costs of the general body of taxpayers.