I am advised by Revenue that the role of its Large Cases High Wealth Individuals (HWI) Division and Medium Enterprises Division (MED) is to encourage and ensure compliance with tax legislation for the case base within their area of responsibility. These Divisions have been established as part of Revenue’s decision, in the overall context of risk, to realign its resources to give a better focus on and response to risk in line with Revenue’s Statement of Strategy 2017-2019. The compliance work of each of the aforementioned Divisions is risk based and the capacity and capability of each Divisions is related, inter alia, to a range of factors including the complexity of the cases.
I am advised that the HWI Division is, in general, responsible for the tax affairs of individuals with a net worth of c. €50m, for tax avoidance and for pensions. In relation to individuals, the MED is responsible for the tier of high wealth individuals, just below the case base of the HWI Division. The criteria used to identify individuals for inclusion in the MED is a combination of wealth, income, and risk indicators.
Both Divisions monitor the tax affairs of their case base through risk assessment and evaluation programmes that are supported by data analytics and by the interrogation of both taxpayer and third-party information. In line with Revenue’s overall approach to managing compliance the appropriate intervention is undertaken following appraisal of the risk factors in each case. The substantive difference in the two Divisions is the taxpayer case base for which they have responsibility.
I understand that Revenue’s structural realignment is supported by an expansion in the number of specialist and experienced staff assigned to the oversight of the case base in each of the two new Divisions. This includes staff with backgrounds in the tax, accounting and legal professions. By the end of 2018 the staffing of the HWI Division will be c.100 and the staffing of the MED will be c.380. Staff are assigned to Divisions where their skills can be matched to the requirements of the role.
Revenue operates within a legislative framework that applies to the overall customer base. Revenue powers are exercised by appropriately authorised Revenue officials subject to compliance with the relevant governance procedures in place.
The threshold within which cases are managed by the different Divisions in Revenue are an administrative matter for Revenue for high wealth individuals and are not set out in legislation.
I am also advised by Revenue that the Large Cases Division case base reviews in 2007 and in 2015 were part of Revenue’s normal procedural reviews. Having regard to risk assessment of the case base, Revenue’s existing oversight of the case base at that time and Revenue’s overall strategic priorities, the decisions made at the time was not to adjust the threshold for high wealth individuals for which LCD was responsible.
The Deputy will be aware that Revenue operates its risk, compliance and service functions independently from Ministerial direction. I have been supportive of Revenue proposals with regard to additional resources in the context of the last three budgets and estimates campaigns. I will carefully consider any further requests for additional resources.
