Dan Boyle
Question:11 Mr. Boyle asked the Minister for Finance the administrative instructions issued to inspectors of taxes. [9797/03]
Priority Questions. - Tax Inspections.
I am advised by the Revenue Commissioners that a very significant body of instructions is issued to inspectors of taxes. The Deputy can get a flavour of these by referring to the freedom of information section on the Revenue website. In addition to the formal written instructions, extensive training is provided in accountancy, tax law and all aspects of tax administration. All operations carried out by inspectors of taxes are under the general control and management of the Revenue Commissioners. In line with best practice, all areas operate under the principles laid down in the Revenue statement of strategy and business plans addressing these principles. Work is prioritised in accordance with business plans, resources available and Revenue priorities.
I am grateful to the Minister for referring me to the freedom of information section of the Revenue website. Is the Minister satisfied, given the number of additional powers he has given the Revenue Commissioners in recent years, that full use is being made of all these powers? Is it not the case that while some of these powers have been used extensively, for example those relating to bogus non-resident accounts, some powers have been used marginally and some have not been used at all? One possible reason for this is the administrative make-up of the Revenue itself, where inspectors of taxes, at local decentralised level, often cannot operate on their own initiative and must refer decisions upwards. Many decisions seem to be getting stuck in the Office of the Chief Inspector of Taxes. Is the Minister satisfied the line of information in giving permission to take action against tax defaulters is sufficient to allow inspectors of taxes on the ground to do their jobs effectively?
The inspectors operate in accordance with instructions and duties agreed with their managers. Within this structure inspectors have discretion to deal with matters coming before them except where they need advice or where the legislation or instructions require deferral to others. The additional powers I gave to the Revenue Commissioners since becoming Minister are very significant. In the last month I set up a Revenue powers group to review those powers to assess a number of matters, including an evaluation of whether the balance is just right. In 1999 I gave significant initial powers to Revenue and I have followed up on that since. I promised at the time I would set up such a group and it will report at the end of October.
Significant new powers were given to the Revenue Commissioners in a variety of areas and it is the duty of Revenue to use those responsibly. There are different delegating sections under the powers given to the Revenue and in any big organisation, including the Department of Finance, people make decisions at different levels. That has always been the situation in the Revenue Commissioners and will continue to be, as is usual in any large organisations.
Is the Minister concerned that the trend in recent annual reports of Revenue shows that the use of existing powers like audits has been decreasing? The last available number for special audits was down to 15, a massive decrease. The Revenue Commissioners are sending out a signal that the likelihood of tax inspections being faced by tax defaulters is lessening. Is that the right signal?
The Deputy must not have talked to many accountancy practitioners in the past 12 months. They would not have given him that impression.