Vol. 519 No. 5
48 Mr. M. Higgins asked the Minister for Finance the progress being made in regard to the recovery of outstanding DIRT liabilities identified in the report of the DIRT sub-committee of the Committee of Public Accounts; and if he will make a statement on the matter. [14261/00]
I am informed by the Revenue Commissioners that they are at present well advanced in a programme of DIRT look-back audits, going right back to 1986, in the case of financial institutions who are relevant deposit takers under the DIRT legislation. These audits are being carried out using the new powers given to Revenue in the Finance Act, 1999. In all, 40 or so financial institutions are being covered in the audit programme. At this stage, 30 audits are ongoing, including those in the main institutions. These audits are well advanced and arrangements have been made for the remaining audits to be carried out in the next month.
The focus of Revenue's DIRT look-back audits is on checking a sample of non-resident accounts, as provided for in the legislation, in each of the financial institutions concerned. The information gathered from checking the sample of non-resident accounts, together with the other information obtained by inspectors in the course of their audits, will allow Revenue form a view on compliance with the DIRT legislation and, where necessary, an estimation of the level, if any, of DIRT under-deducted by the financial institution.
Although the Revenue audit programme is well advanced, work remains to be done and the audits have not yet reached the stage where it is possible to make an interim report of amounts of DIRT, interest and penalties arising. When Revenue have completed the audit in each financial institution, it will present the results to the management and seek to reach agreement on the amount of underpaid DIRT liabilities together with interest and penalties. If agreement is reached, the case can be settled on that basis. On the other hand, if agreement is not forthcoming assessments will be raised by Revenue which can, of course, be appealed to the appeal commissioners and the courts.
Provision has been made in section 68 of the Finance Act, 2000, for the Revenue Commissioners to publish the results, including interim results, of their look-back DIRT audits, covering the years 1986-7 to 1998-9, inclusive. Revenue are required to make a report to the Committee of Public Accounts before 1 November 2000.
