Special Committee Value-Added Tax (Amendment) Bill, 1977 debate -
Thursday, 26 Oct 1978

SECTION 7.

Question proposed: " That section 7 stand part of the Bill."

Mr. Colley

This section repeats the existing provisions relating to the registration of taxable persons contained in the original VAT Act and it incorporates the new expression "taxable person" instead of "accountable person".

We are deleting the old subsection (1). The reference in the existing provision in the original VAT Act to the assignment of a registration number is being deleted. The reason is that the Revenue Commissioners plan to convert in due course to a multi-purpose identification number system for tax-payers which would be used for all inland revenue taxes.

Mr. P. Barry

Could the Minister define "in due course"?

Mr. Colley

As soon as possible.

Mr. McCreevy

Is the Minister saying they are going to have one number for each person for all tax, be it PAYE, VAT or other?

Mr. Colley

Yes, for all inland revenue taxes.

Mr. Horgan

Will this infringe any privacy standards?

Mr. Colley

As the Committee know, all the activities of the Revenue Commissioners are covered by very strict secrecy provisions in law. I have never heard any complaints that they have been abused. Whatever complaints there might be in general about invasions of privacy, I do not believe it will arise in relation to the activities of the Revenue Commissioners. There may be other complaints but I do not think it will be that one.

Mr. McCreevy

In the old days people could be registered for turnover tax and the Revenue might never catch up with them for income tax. However, the introduction of VAT changed all that.

Mr. Horgan

We would all agree that the secrecy regulations are valuable and necessary. However, as one who believes that the limits for evasion of tax should be reduced to the minimum, there are some senses in which one welcomes the VAT Bill in itself and anything that creates a tax net so that anybody who touches the ground at any point will have his other activities scrutinised. In the long run we believe that this is to the benefit of the average taxpayer. There is no other rationale for it.

Mr. Colley

As I have indicated, this is what we plan. The reason is to try to ensure that those who are liable for any form of inland revenue tax will pay it. This is not the complete answer but it should be of considerable assistance in ensuring that anybody who has been managing either to evade or avoid liability will find it more difficult to do so in future.

Mr. P. Barry

Since VAT was introduced it has been more difficult to evade tax. What we are doing is updating the machinery to make it even more convenient for the Revenue Commissioners to find these people.

Mr. Colley

It may be true to say that it would be more convenient for the Revenue Commissioners but that is not the object of the exercise. It is not simply for the convenience of the Revenue Commissioners but to try to ensure that the tax collection system is more effective.

Mr. McCreevy

It is a logical step for the Revenue Commissioners. I hope that sub-contractor certificate numbers will be incorporated in the scheme.

Mr. Colley

Sub-contractor numbers will also be incorporated in it but it may not be possible in the initial stages.

Mr. P. Barry

I do not disagree with tightening the reins on those who are already in the tax net but, unfortunately, there are a large number of people who are not in the tax net and they will not be pursued with the same enthusiasm.

Mr. Horgan

We are pursuing tax-payers who are not in the tax net?

Mr. P. Barry

People earning money who are not in the tax net.

Mr. Colley

It is not the complete answer to the problem but it should be of great assistance in dealing with the problem. Undoubtedly there will be some people who will still be outside the ken of the Revenue Commissioners. In so far as this will reduce the administrative problems of the Revenue Commissioners in dealing with those who are already in the tax net, it will enable greater efforts to be made to locate, identify and pursue those who are not presently within the ken of the Revenue Commissioners.

Question put and agreed to.