Vol. 474 No. 6
80 Mr. Haughey asked the Minister for Finance his views on the number of people working under false names in order to avoid family income tax liability; the action, if any, he is taking to deal with this situation; and if he will make a statement on the matter. [3692/97]
I am advised by the Revenue Commissioners that they have no evidence that false names are used to avoid family income tax liability. To work and get a tax advantage under a false name, a taxpayer would need to establish a whole new identity for himself or herself and get tax documentation accordingly.
To secure tax documentation it is necessary to have an RSI number. Without tax documentation, employers are obliged to deduct tax on the emergency basis. A Revenue and Social Insurance (RSI) number is allocated by the Department of Social Welfare to a child when a claim for child benefit is being made by the child's parents. Children, on reaching 16 years of age, are notified of their RSI number by the Department of Social Welfare. The RSI number is their personal life-long reference number for all tax and social welfare purposes and is traced when employment commences or there is a change of employment. RSI numbers can be allocated to individuals not falling within the child benefit scheme and these are subject to similar controls.
When an employer takes on a new employee he or she must notify the tax office of the commencement and give relevant personal details including the RSI number of the employee. These details are verified by the tax office before issuing tax documentation. In the meantime, the employer will deduct tax on the emergency or temporary basis.
If the Deputy has any information on this matter, the Revenue Commissioners will be happy to receive it.
