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