Dáil Éireann Debate, Wednesday - 22 June 2016
108. Deputy Jim Daly asked the Minister for Finance if he is satisfied that statistics on the amount of interest foregone on foot of the primary charge to tax being written out are not maintained or available from the Revenue Commissioners. [17556/16]
View answerAs previously advised to the Deputy, Revenue applies statutory interest charges to all tax settlements, debt enforcement activity and phased payment arrangements. Over the last five years Revenue has collected almost €430m in interest on behalf of the Exchequer and its determination and effectiveness in this regard is a key component of the overall strategy for securing timely tax compliance and ensuring a level playing field for those that pay their taxes in full and on time.
I am very satisfied that Revenues long standing approach to interest charging, including the manner in which statistics are captured, is balanced and effective. The statistical output is designed to fully capture all interest charges that arise on foot of late payment of tax and to omit interest charges where the primary tax charge is written out. To change the process would require expensive system developments that would be at the cost of other important enhancements and upgrades without providing an appropriate return on investment.
For the Deputy's information, interest that is correctly charged is only written out in very limited circumstances. The bulk of such write outs arise in either insolvency situations (Liquidation, Bankruptcy, Examinership and certain Receiverships) or where a taxpayer/business ceases to trade and there are no realisable assets. To put it in context the amount of tax written out in 2015 was 0.3% of gross collection.
