Dáil Éireann Debate, Wednesday - 1 June 2005
30 Mr. Broughan asked the Minister for Finance the procedures in place to monitor whether or not those who claim to be non-resident for tax purposes are actually resident out of the country for the required period; and if he will make a statement on the matter. [18267/05]
View answer107 Mr. Gormley asked the Minister for Finance if he will give the Revenue Commissioners greater powers to monitor tax exiles, or to shift the burden of proof towards these tax exiles; and if he will make a statement on the matter. [18341/05]
View answerI propose to take Questions Nos. 30 and 107 together.
I am informed by the Revenue Commissioners that the procedures adopted in relation to validating a claim to non-residence status depend on the circumstances in each case. The administration of these validation procedures is a matter for the Revenue Commissioners and I am informed by them that these procedures are kept under review. I am, however, informed that the methods used to verify claims to non-residence include a range of tests and an intelligence dimension which for obvious reasons they do not publicise.
At present, Revenue has statutory powers to make all relevant inquiries in relation to any aspect of tax returns including claims to non-residence status. I am informed that a number of audits are at present under way into claims to non-residence. These audits will be a regular feature of the risk-based programmes operated by Revenue.
I do not feel that Revenue require further powers at this time to monitor tax exiles. However, as already outlined to the House, I have asked the chairman of the Revenue Commissioners to monitor the application of the current non-resident rules, through examination of cases handled in the Revenue large cases division, and to provide me with a report once this examination is complete.
