I propose to take Questions Nos. 31 to 35, inclusive, and 58 together.
I am taking it that the questions relate to the seizure of goods in the context of the collection of tax debts. While the Deputy may not be referring to the right of appeal in relation to tax liabilities, which is a separate matter, in summary these provisions afford taxpayers the opportunity to ensure that they have been correctly assessed to tax and that they have been correctly granted any reliefs claimed by them that may be due. These rights of appeal are comparable to taxpayers' rights of appeal in most developed countries. Once a taxpayer’s liability to tax has been determined in accordance with the law, it is a matter for the taxpayer to ensure that that liability is paid as and when due. There are no further rights of appeal against paying taxes correctly due in accordance with the law.
The Revenue Commissioners’ primary goal is to maximise compliance with Tax and Customs legislation. Notwithstanding the current difficult financial, economic and business environment, Revenue is and will remain focused on securing the taxes and duties due to the Exchequer. Revenue expects taxpayers to have a clear focus on maintaining payment compliance and on meeting their obligations in full on a timely basis. Remedying late or non-compliance is preferably achieved through engagement with the taxpayer, but where that engagement is not forthcoming then Revenue will utilise appropriate collection enforcement measures, including referral to Sheriffs, to pursue outstanding tax debts. Revenue’s procedures in relation to collection and enforcement are set out in their Collection Manuals for Revenue staff (these are also available on www.revenue.ie) and implementation of these procedures are subject to appropriate supervision by officers at various levels to ensure that, before any enforcement action is taken, those procedures have been followed and have been applied appropriately according to the circumstances of any particular case. It is important to note that all taxpayers who have failed to pay their taxes on time are given adequate opportunities to come to an arrangement with Revenue to pay their taxes over a period, where they face genuine difficulties in paying them in a single amount as due.
I am advised by the Revenue Commissioners that the execution of Revenue warrants by Sheriffs in respect of tax debts is specifically provided for in Section 962 of the Taxes Consolidation Act, 1997, as amended. However Sheriffs are Officers of the Court, holding office under Section 12 of the Court Officers Act 1945, and are independent of the Minister for Finance and the Revenue Commissioners. Their debt collection activities, including seizure procedures, are generally covered by the Enforcement of Court Orders Act, 1926, as amended. They may seize whatever goods are necessary to satisfy an outstanding debt.
Sheriffs are answerable before the Courts for any breach of the civil debt collection code and accordingly are not directly accountable to me or to the Revenue Commissioners in relation to the execution of warrants for the collection of tax. In these circumstances, I am not in a position to comment further on the processes used by sheriffs, training of their staff or legal actions if any taken in relation to the actions of sheriffs.
As regards further oversight, in addition to being officers of the Court, the Sheriffs are subject to the Data Protection Acts. I am further advised that the Sheriffs have in place a Code of Practice, available from any sheriff or on Revenue’s website, which sets out how Sheriffs will engage with taxpayers. For example, it includes commitments that when goods are seized a written inventory will be supplied to the taxpayer as soon as possible, and there is a commitment to furnish the taxpayer with an account of the proceeds of the sale of any goods seized. The Code also sets out the process whereby a taxpayer may make a complaint and how it will be handled.
I have no plans to propose changes in relation to the provision of the Finance Acts governing tax debt collection and enforcement available to Revenue, as I am satisfied that these are appropriate to the safeguarding of the collection of taxes on behalf of the Exchequer. I am also satisfied that the procedures Revenue have in place with regard to the use of the legislation are appropriate and strike the right balance in terms of fairness as between the majority of taxpayers who pay their taxes on a timely basis and those who fail to do so. However, in the Finance Bill which is currently before the House I am proposing to provide for the forfeiture of alcohol products on unlicensed premises where a tax clearance certificate is not in place.
While detailed information is not available to them, the Revenue Commissioners advise me that the OECD has reported that in a survey of 52 revenue bodies, practically all have available to them powers to arrange the seizure of taxpayers assets to enforce tax debt collection.
