Dáil Éireann debate -
Tuesday, 14 Dec 1999

Vol. 512 No. 6

Written Answers. - Tax Collection.

Emmet Stagg

Question:

73 Mr. Stagg asked the Minister for Finance the steps, if any, he will take to implement the commitment given in the review of An Action Programme for the Millennium to take all necessary measures to enable the designated authorities to collect all due taxes, to pursue past and present tax evaders and to recover unpaid tax liabilities with appropriate penalties and disclosures; and if he will make a statement on the matter. [26895/99]

Minister for Finance (Mr. McCreevy)

I said in my budget speech that the Government is only too aware of the need to maintain confidence in the tax system – confidence which has been severely dented by recent revelations – and has already acted decisively in this regard. The 1999 Finance Act provided for a major extension of revenue powers, including easier access to records held in financial institutions and to general third party information. Revenue are actively using these new powers, which have retrospective effect, and I am confident that they will prove effective in pursuing both past and present tax evaders. If additional powers are found to be necessary, the Government will bring forward appropriate legislation in future Finance Bills.

Serious tax evaders will be prosecuted where there is sufficient evidence to sustain a conviction. To this end Revenue has set up a dedicated team, which includes a senior member of staff from the DPP's office, to pursue criminal prosecutions in suitable cases. On the question of disclosure where tax evasion has been discovered, the identity of those tax evaders who settle with Revenue will continue to be published under existing legal powers.

As well as additional powers, I have also provided Revenue with additional resources. Earlier this year I sanctioned the appointment of 37 new staff, mainly to the audit and investigation side. These included four professional accountants, two solicitors and a banking expert. The Revenue Commissioners have reviewed their overall staffing requirements and I am now considering requests that they recently put to me in this regard.

As regards tax collection generally, Revenue are well on the way to eliminating some £1 billion of historical tax arrears by the end of this year. They have had increasing success in recovering unpaid taxes in liquidation and receivership cases, particularly cases involving so-called phoenix companies. New and more effective arrangements have recently been put in place with Revenue sheriffs and only last week six additional firms of solicitors were appointed to assist in collecting arrears of taxes.

I assure the Deputy that this Government is fully committed, as set out in the action programme review, to supporting Revenue in its efforts to pursue past and present evaders and defaulters, and that all necessary measures will be taken to achieve a significant improvement in tax compliance.