Dáil Éireann Debate, Tuesday - 16 October 2012
196. Deputy Nicky McFadden asked the Minister for Finance if the tyre traders industry will be added to the list of cash businesses to be targeted by the Revenue Commissioners due to a risk of non-compliance with regulations for VAT, tax and waste disposal; and if he will make a statement on the matter. [44386/12]
View answerThe Deputy will be aware that it is a matter for the Revenue Commissioners to determine which sectors and which cases are to be selected for compliance interventions. I am advised by the Revenue Commissioners that they are very mindful of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. Revenue’s tax and duty compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow/hidden economy. I am advised that Revenue tackles the problem of tax and duty evasion through their range of compliance and audit interventions including through targeted special projects. Case interventions are undertaken based on Revenue’s assessment of compliance risks, the level of those risks and other relevant information available. In 2011 Revenue carried out over 11,000 audits of businesses and individuals as well as over 546,000 other compliance checks. These resulted in additional yield for the Exchequer of almost €483m.
Revenue uses a wide range of methodologies to identify those who under-declare their income and/or are operating in the shadow/hidden economy, and deploys the full range of compliance interventions to tackle those risks. Activities undertaken can include covert surveillance, cold calls to businesses and venues as well as pre arranged aspect queries on specific items. There is a strong focus on cash businesses, given its potential high-risk nature, and I am informed that in the first eight months of 2012 audits specifically targeted at these businesses have yielded over €12m.
I am further advised by the Commissioners that, regarding the retail and wholesale motor vehicle parts and accessories sector, 17 Audits have been carried out so far in 2012, yielding €331,165. In 2011, 37 audits were carried out in this sector, yielding €483,070. These statistics are compiled from Revenue’s records and I am informed that for the purpose of their records, the motor vehicle parts and accessories sector includes the tyre distributor industry.
Revenue holds meetings with trade and representative bodies nationally and locally through the Hidden Economy Monitoring Group where the risks posed by shadow/hidden economy activities are discussed. Furthermore, Revenue encourages anyone who has specific information regarding any business that is engaged in tax evasion, to submit the details to their local Revenue office.
