Dáil Éireann Debate, Tuesday - 16 July 2013
269. Deputy Brendan Griffin asked the Minister for Finance if it is preferred policy by the Revenue Commissioners to recover tax liabilities to seek judgments on the homes of previously self-employed persons as opposed to accepting settlements or instalment orders; and if he will make a statement on the matter. [34919/13]
View answerFirstly, I would like to briefly comment on Revenue’s approach to tax collection and in particular its overall compliance and debt management approach. Revenue has a strong focus on making sure that every individual and business complies with the responsibility to pay the right amount of tax or duty, including any interest and penalties which are due, in full and on time. This is an appropriate and correct focus for Revenue and one that I fully endorse. Delays in the collection of tax revenues properly due adds to the level of Government borrowing and public debt interest and confers an unfair competitive advantage on non-compliant businesses. Revenue also has to guard against so-called “phoenix” businesses where tax debts are left unpaid from a previous business.
Where payment of a tax debt in a single sum is not possible for the taxpayer or business, perhaps due to temporary cashflow difficulties, then Revenue may, and regularly does, agree to a phased payment arrangement. In such circumstances the onus is on the taxpayer or business to make realistic proposals to Revenue that will see the debt being addressed in the shortest possible timescale. A key condition of any such arrangement is that current taxes are paid as they fall due.
I note that in 2012 Revenue granted in excess of 16,000 instalment arrangements covering €124 million of debt to taxpayers experiencing cashflow difficulties. I am very happy that this level of concession clearly confirms Revenue’s commitment to assist viable businesses during our current economic difficulties.
Remedying late or non-compliance is preferably achieved through engagement with the business or taxpayer, but when that engagement is only partially forthcoming, or perhaps not at all, then Revenue has no option but to utilise measures such as the charging and collection of interest or the deployment of effective enforcement measures to secure payment of the tax debt, to encourage future voluntary timely compliance and to ensure a ‘level playing field’ for the vast majority of taxpayers who meet their obligations in full and on time.
In circumstances where Revenue has to use enforcement measures to secure collection of outstanding taxes, the type of enforcement deployed will always depend on the specific circumstances of a case. However, Revenue generally refers such cases to either the Sheriff or Solicitor in the first instance. Where the Solicitor option is deployed, there is the possibility of judgments being secured through the Courts which result in instalment orders, or in judgment mortgages being placed on properties. Revenue has confirmed to me that the use of judgment mortgages is normally to secure a tax debt in the event of a property being sold by the taxpayer. It does not necessarily mean that Revenue intends to "force" sale of the property, and the Deputy may wish to be aware that as a matter of operational policy, Revenue has never forced the sale of a family home.
