Dáil Éireann Debate, Tuesday - 20 September 2011
136 Deputy Alan Farrell asked the Minister for Finance the amount lost to the Exchequer due to tax evasion on a yearly basis over the past five years; his plans to minimise this amount as a means of increasing tax revenue; and if he will make a statement on the matter. [24901/11]
View answerI am advised by the Revenue Commissioners that they do not measure the amount of tax lost to the Exchequer due to tax evasion. There is no one internationally recognised and agreed measure. The results from the many different measures must be treated with a great deal of caution. The international response by other tax authorities to tax evasion is to focus on deterrence while at the same time facilitating compliance. This is precisely the approach adopted by the Revenue Commissioners. The main focus of Revenue continues to be on selecting cases for intervention based on the presence of various risk indicators and other information available. This is the type of targeted intervention that gets best results and that is most likely to change the behaviour of the taxpayer into the future. The targeted approach is greatly enhanced by the computerised Risk Evaluation Analysis and Profiling System (REAP) developed by Revenue. Cases may also be selected on the basis of external/further information provided to Revenue.
Revenue fully recognises the need to tackle tax evasion in all its forms, and consequently has an increased focus on sectors which have the potential to operate using cash.
Last year auditors carried out 11,008 audits resulting in a yield of €434.7 million. A total of 454,796 assurance checks, a less intrusive form of intervention, produced a yield of €58 million.
