Dáil Éireann debate -
Wednesday, 28 May 2003

Vol. 567 No. 6

Written Answers. - Tax Collection.

Jan O'Sullivan

Question:

86 Ms O'Sullivan asked the Minister for Finance the progress which has been made to date with regard to the commitment given in An Agreed Programme for Government that everyone would be made tax compliant; and if he will make a statement on the matter. [14651/03]

Minister for Finance (Mr. McCreevy)

I provide every support which I consider appropriate to the Revenue Commissioners in carrying out their task of ensuring that everyone is tax compliant, and as I confirmed in response to earlier questions on this matter, the Revenue Commissioners consider that ongoing implementation of the efforts and initiatives which they are putting in place should result, over time, in a significant improvement in compliance. The Revenue Commissioners have at their disposal a significant body of enhanced audit and investigative powers, much of which was provided during my term of office as Minister for Finance. I also provided them with more than 400 additional staff in the last two years most of which have been deployed in the audit and compliance area.

The Revenue Commissioners' statement of strategy 2003-2005, published on 3 March last, contains a strong emphasis on maximising compliance with tax and customs legislation and outlines a number of related key objectives and supporting strategies. As I outlined in my earlier responses, the Revenue Commissioners inform me that they have recently advanced a number of key developments which will have a significant impact on tax compliance: An investigations and prosecutions division has been established to deal with prosecution of persons involved in serious tax evasion. Additional staff have been allocated to that division to give it the extra capacity it needs and to ensure that a reasonable number of serious evasion cases are investigated each year with a view to prosecution; a large cases division has been established with specific focus on large companies and wealthy individuals. This division is preparing a comprehensive analysis of the issues relating to large companies and wealthy individuals, in particular those which pose a risk to tax revenues across all the taxes and duties payable to the Exchequer; a computerised risk-based selection system is under development and will be brought into operation this year. This system will, when fully operational, allow for the screening of all tax returns against sectoral and business profiles and will provide a sophisticated selection basis for cases for audit; a new code of practice for revenue audits is now in place. This outlines clearly the consequences of non-compliance and the penalty provisions which apply in such cases; increased resources have been applied to audit programmes and on-going training programmes are in place to ensure that all revenue auditors have the necessary knowledge and skills to audit effectively and efficiently; and a comprehensive strategy to improve tax returns compliance is at an advanced stage of consideration.

As I also mentioned previously, the Revenue Commissioners are undergoing a fundamental restructuring with a view to increased efficiencies in managing the tax system and this restructuring advanced significantly to the implementation stage on 18 March. I have also, as Minister for Finance, given approval to the Revenue Commissioners to proceed with substantive integration of the taxes departmental and the general services grades in Revenue. The Revenue Commissioners have informed me that this restructuring and integration will facilitate the delivery of a sharp, uncompromising response to evasion and default while providing high quality services to the compliant. There will be a more integrated approach to case monitoring and more flexibility in focusing resources on non compliance in all its formats. The commissioners consider that the implementation of these efforts and initiatives, will result, over time, in continued improvement in compliance.