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.