Vol. 523 No. 4
105 Ms Shortall asked the Minister for Finance if, in view of the frequency with which employees discover that their ex-employer did not make adequate tax returns to the Revenue Commissioners, he will issue six monthly statements to employees confirming that the correct amount of tax has been deducted and paid; and if he will make a statement on the matter. [21142/00]
All employers are required to operate PAYE on their employees' pay. I am informed by the Revenue Commissioners that, generally, compliance with the law in this area is good. The vast majority of PAYE tax revenue is paid on time. There is follow-up action by the collector-general's office where payment is overdue. Tax inspectors carry out employer audits to ensure that PAYE is operated correctly. Revenue is not aware of any major problems in PAYE compliance at present. There are always individual problems due to business failure – but these are the exception.
The position of employees who have tax deducted under the PAYE system is protected under tax law; the tax deducted is regarded as the tax of the employees and they are credited with this tax whether or not the employer pays the tax to the Revenue Commissioners. The Revenue Commissioners continue to operate their annual compliance campaign to ensure that all employers submit a form P35, which is a detailed account of tax paid for each employee and must be submitted after the end of the tax year.
In the circumstances it is not considered necessary or practical to issue six monthly statements of the type mentioned. However, if the Deputy has any specific concerns about a particular employer, I would ask her to let me know and I will request the Revenue Commissioners to conduct an investigation.
