Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Written Answers. - Tax Collection.

Brendan Howlin

Question:

78 Mr. Howlin asked the Minister for Finance if his attention has been drawn to claims made at the recent IMPACT conference in Cork that not enough attention was being paid to anti-evasion measures proposed by the Revenue Commissioners; his views on the claims made; and if he will make a statement on the matter. [14487/02]

Minister for Finance (Mr. McCreevy)

During my term of office as Minister for Finance, I have responded positively and constructively in relation to recommendations on Revenue powers, for example, from the public accounts committee sub-committee on DIRT or to proposals from the Revenue Commissioners in relation to Revenue's general powers of investigation and audit and also with regard to penalties for Revenue offences. I have provided a significant increase in manpower resources for Revenue, having sanctioned over 400 additional posts in the last two years. This has enabled, among other things, a considerably enhanced audit and investigations resource. All of these measures, taken together, have placed the Revenue Commissioners in a stronger position to address tax evasion and avoidance.

I therefore cannot agree with the proposition that not enough attention was or is being paid to anti-evasion measures proposed by the Revenue Commissioners or others.

As I indicated in response to the reports in the media on 24 May on the IMPACT conference I provided a significant package of powers in the Finance Act, 1999; among other things this enabled the DIRT look-back audit, which resulted in payments totalling €219 million from the financial institutions in tax, interest and penalties; where possible, I have given a positive response to all of the recommendations relating to Revenue powers made by the public accounts committee sub-committee on DIRT, including those contained in their latest report which were acted upon in this year's Finance Act; Revenue now has greater powers to access financial information, including bank accounts; following the recent Revenue initiative to encourage voluntary disclosure in relation to bogus non-resident accounts, which yielded €227 million in underlying tax, interest and penalties, Revenue has obtained High Court orders to obtain the names of bogus non-resident account holders and these cases are being processed within Revenue.

Since 24 May, I have received correspondence from IMPACT seeking to clarify their position in the light of the media coverage and indicating that the motions passed at their conference were intended to express the union's view on ways to improve tax compliance and the tax take. They also stated that the relevant texts contained "no explicit or implicit criticism of the Revenue Commissioners or the Minister for Finance" and further, that it was not "IMPACT's, or its Association of Inspector of Taxes branch's, intention to level such criticism".