Dáil Éireann debate -
Wednesday, 10 Nov 1999

Vol. 510 No. 4

Written Answers. - Tax Collection.

Eamon Gilmore

Question:

42 Mr. Gilmore asked the Minister for Finance the amount of uncollected tax written off by the Revenue Commissioners in each of the past five years; the new proposals, if any, he has to ensure that the maximum possible level of collection is attained and write-offs minimised; and if he will make a statement on the matter. [22707/99]

Minister for Finance (Mr. McCreevy)

The amount of tax written off by the Revenue Commissioners in each of the past five years is: 1994 £98.9 million; 1995 £80.5 million; 1996 £90.7 million; 1997 £281.l million; 1998 £216.7 million.

Deputies will appreciate that the actual administration of the tax collection system is a matter for the Revenue Commissioners. The Revenue Commissioners have assured me that only uncollectible tax is written off and this is done in accordance with updated general policy and procedures agreed with the Comptroller and Auditor General in 1997. I understand that the need to write off accumulated artificial estimates and amounts shown in respect of liquidated companies accounts for the increase in write off in recent years.

The Revenue Commissioners' current strategy is designed to bring about an increase in timely payment of taxes and, as a result, a decrease in the accumulation of new debt. At the same time older nominal debt, which in many cases is based on unrealistic estimates from the pre-self assessment era, must be eliminated from the record so as to ensure that resources are not wasted in the pursuing of such debt at the expense of current collection. Progress in the debt management programme is reflected in the reduction of the amount of debt from 57 per cent of net annual tax collection in 1988 to 8 per cent in 1998. The reduction is being achieved through improved case working of cases where tax is outstanding and through tougher action, including liquidation of companies, for non payment.

I know the Revenue Commissioners are committed to maximising tax collection and have been very successful in doing so. Their efforts in this regard are reflected in the excellent Exchequer returns.