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Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - Outstanding Taxes.

Ivor Callely

Question:

183 Mr. Callely asked the Minister for Finance the total amount outstanding in uncollected taxes for the most recent date for which figures are available; if he will give a breakdown of the outstanding taxes for the past five years; the estimated amount likely to be collected; and if he will make a statement on the matter. [7866/01]

The total amount of tax outstanding at 31 May 2000, the most recent Appropriation Account figure, was £1,055 million. This was down from £1,167 million in the previous year notwithstanding the significant increase in the total amount of tax that had to be collected in the interim. The following table sets out the breakdown of outstanding taxes as requested by the Deputy over the past five years.

Substantial progress continues to be made in reducing the overall level of Revenue debt. The debt at 31 May last year represented 6% of annual net tax collection and the scale of the reduction achieved is shown by the fact that the equivalent figure in 1988 was 57% of tax collected. Notwithstanding this good performance, however, the Revenue Commissioners are committed to seeking further reduction through a continued policy of encouraging voluntary compliance while rigorously pursuing outstanding liabilities.

The table shows that the Revenue Commissioners estimate that £560 million will be collected out of the debt of £1,055 million. This is the most realistic estimate possible based on past experience. It reflects a substantial estimated content of a significant part of the debt especially for older years and also the fact that, even in times of strong economic growth, business failure is still a fact of life and some of the debt will relate to companies which may be insolvent.

Table

Balances outstanding each yearat 31st May from1996 to 2000

Balance at31 May1996

Balance at31 May1997

Balance at31 May1998

Balance at31 May1999

Balance at31 May2000

Estimate of Amount Likely to be Collected

£m

£m

£m

£m

£m

£m

Income Tax (Excluding PAYE)

720

673

555

494

388

203

VAT

451

331

249

233

250

111

PAYE/PRSI

462

388

273

215

179

101

Corporation Tax

268

231

184

162

169

101

Capital Gains Tax

69

56

48

44

50

30

Capital Acquisition Tax

3

3

14

13

13

11

Abolished Taxes

5

8

6

6

6

3

Total

1,978

1,690

1,329

1,167

1,055

560

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