Dáil Éireann Debate, Wednesday - 4 May 2011
65 Deputy Bernard J. Durkan asked the Minister for Finance the number of instances in which the Revenue Commissioners have taken legal action against taxpayers in each of the past five years to date in 2011, whether against individuals or small medium enterprises; and if he will make a statement on the matter. [10045/11]
View answer66 Deputy Bernard J. Durkan asked the Minister for Finance the number of court cases taken by the Revenue Commissioners against persons deemed to have a liability in each of the past five years to date in 2011; the amounts recovered outstanding or otherwise; the number of prison sentences served arising therefrom; and if he will make a statement on the matter. [10046/11]
View answerI propose to take Questions Nos. 65 and 66 together.
I am advised by the Revenue Commissioners that they initiate legal action in a broad range of circumstances as part of their debt management, compliance, investigations and prosecution programmes, and the results since 2006 are set out in the following tables. The numbers are small, having regard to the size of the taxpayer base, but these programmes are an important part of Revenue's compliance strategy, and are essential in maintaining public confidence in the tax system.
Revenue does not maintain records that would allow for compilation of data by reference to actions taken against individuals or small and medium enterprises. However data is available on the number of judgements and their value, obtained for each of the years requested, broken down between individuals and companies and, by definition, all liquidation cases are companies. It is understood that the Deputy is not seeking data in relation to legal proceedings for excise offences or customs criminal investigations.
Revenue employs the services of six firms of external solicitors to effect recovery proceedings on its behalf. The following table summarises the number of cases referred by Revenue to its solicitors, the value of debt in those cases and the debt recovered for each of the years requested. It should be noted that recovery may be effected by the firms concerned without the need to initiate formal legal proceedings before the courts.
|
Year |
No. of Cases Subject of referral to External Solicitors |
Value of Debt Referred |
Debt Recovered |
|
€m |
€m |
||
|
2006 |
7,018 |
205.2 |
70.9 |
|
2007 |
6,143 |
165.1 |
75.2 |
|
2008 |
6,578 |
237.2 |
65.1 |
|
2009 |
6,832 |
297.5 |
46.2 |
|
2010 |
6,668 |
261.1 |
43 |
|
2011 (Q1) |
1,690 |
62.4 |
8.2 |
|
Individuals |
Companies |
|||
|
Year |
Number |
Total amount inc. costs: |
Number |
Total amount inc. costs: |
|
€m |
€m |
|||
|
2006 |
580 |
18.9 |
171 |
10.1 |
|
2007 |
708 |
30 |
164 |
7.4 |
|
2008 |
791 |
25 |
221 |
6.9 |
|
2009 |
1,089 |
43 |
330 |
13.4 |
|
2010 |
1,507 |
64.2 |
489 |
20.8 |
|
(Q1) 2011 |
103 |
4.1 |
339 |
17 |
As part of the process of enforcing judgements obtained by Revenue, further legal action may be taken through the courts where the debt remains unpaid. A summary of such measures is set out in the table below.
|
2006 |
2007 |
2008 |
2009 |
2010 |
2011(Q1) |
|
|
Forced Sale Completed |
0 |
0 |
1 |
0 |
0 |
0 |
|
Adjudicated Bankrupt |
2 |
1 |
3 |
4 |
6 |
0 |
|
Committal Order |
2 |
4 |
4 |
2 |
0 |
0 |
|
Committal Order Executed |
0 |
0 |
1 |
1 |
0 |
0 |
|
Mareva Injunction |
0 |
1 |
0 |
1 |
0 |
0 |
|
Garnishee Orders |
0 |
0 |
0 |
3 |
0 |
0 |
|
Receiver by Way of Equitable Execution |
0 |
0 |
0 |
1 |
1 |
0 |
As part of its collection recovery procedures, Revenue also petitions the courts in appropriate cases for the appointment of a liquidator in accordance with Section 214 of the Companies Acts. The number of such orders secured for each of the years requested is set out in the table below.
|
Type of prosecution |
2006 |
2007 |
2008 |
2009 |
2010 |
Total |
|
Prosecutions on indictment for serious tax evasion |
3 |
10 |
15 |
6 |
7 |
41 |
|
Prosecutions for the non-filing of tax returns |
1,295 |
1,263 |
1,181 |
1,164 |
1,320 |
6,223 |
|
Summary prosecutions for single-issue tax cases |
n/a |
n/a |
2 |
13 |
10 |
25 |
Tax Prosecutions 2006-2010
The following table outlines convictions obtained in the past five years. The single-issue tax initiative, which includes for example failure to furnish books and records, began in 2007 and consequently there were no convictions under this programme prior to 2008.
|
Year |
Number of Companies |
|
2006 |
27 |
|
2007 |
19 |
|
2008 |
28 |
|
2009 |
39 |
|
2010 |
63 |
|
2011 (to 29/04/2011) |
19 |
In the majority of successful prosecutions, the Courts impose fines. However, since 2006 16 terms of imprisonment have been imposed by the courts, 13 of which were suspended. In 5 cases, periods of imprisonment have been served, including one in default of fines and one who went to prison on remand.
