Dáil Éireann Debate, Tuesday - 25 May 2021
173. Deputy Ged Nash asked the Minister for Finance , further to Parliamentary Questions Nos. 235 and 236 of 11 May, the criteria applied in concluding that the Revenue Commissioners programme of investigations with a view to prosecution has achieved a considerable level of success, and is an effective deterrent to tax evasion and fraud. [27485/21]
View answer174. Deputy Ged Nash asked the Minister for Finance , further to Parliamentary Question Nos. 284 to 287, inclusive, of 28 April, the number of convictions that related to income tax, value-added tax, corporation tax, capital gains tax, and capital acquisitions tax or stamp duty, respectively, in each of the years 2011 to 2020. [27486/21]
View answerI propose to take Questions Nos. 173 and 174 together.
I am advised by Revenue that the breakdown of the number of convictions under section 1078 of the Taxes Consolidation Act 1997 by tax head in respect of 2011 to 2020 inclusive, as set out in the following table:
|
Year |
Income Tax |
VAT |
Corporation Tax |
PAYE |
Employer PAYE |
Relevant Contracts Tax |
Capital Gains Tax |
Combination of tax heads |
Totals 1078 convictions |
|
2011 |
1 |
6 |
0 |
0 |
2 |
1 |
0 |
6 |
16 |
|
2012 |
4 |
16 |
0 |
0 |
0 |
0 |
1 |
4 |
25 |
|
2013 |
1 |
2 |
0 |
1 |
0 |
0 |
0 |
6 |
10 |
|
2014 |
7 |
2 |
0 |
1 |
0 |
0 |
0 |
6 |
16 |
|
2015 |
0 |
8 |
0 |
0 |
0 |
0 |
0 |
9 |
17 |
|
2016 |
2 |
5 |
0 |
3 |
0 |
0 |
0 |
1 |
11 |
|
2017 |
1 |
6 |
0 |
0 |
0 |
0 |
0 |
2 |
9 |
|
2018 |
4 |
2 |
2 |
0 |
0 |
0 |
0 |
3 |
11 |
|
2019 |
0 |
4 |
0 |
0 |
0 |
0 |
0 |
4 |
8 |
|
2020 |
1 |
4 |
0 |
0 |
0 |
0 |
0 |
4 |
9 |
The criteria applied in determining the level of success of Revenue's programme of investigations with a view to prosecution include:
- The number and quality of cases referred to, and accepted by, its Prosecutions Admissions Committee for investigation with a view to prosecution;
- The number of cases where Revenue’s Prosecutions Branch can obtain sufficient levels of evidence and proof to warrant referral of the case to the Director of Public Prosecutions for direction;
- The number of cases where the Director of Public Prosecutions issues a direction for prosecution; and
- The number of convictions obtained.
The purpose of deterrence strategies for tax administrations is to dissuade taxpayers from non-compliant behaviour. I am advised by Revenue that taxpayer behaviour determines the nature and extent of its compliance interventions. Revenue's interventions range from non-audit compliance interventions such as assurance checks, aspect queries and profile interviews to audit or investigations. It undertakes criminal investigations where cases of serious tax and duty evasion and fraud are discovered, seeking to apply the full legal sanctions available that reflect the seriousness of the evasion involved. These activities all form part of Revenue’s deterrence strategies.
Overall, the international research literature suggests that deterrence is an important driver for taxpayer behaviour but works differently in different contexts and may best be used as a tool for supporting existing norms in favour of compliance. Revenue's published behavioural insights research confirms the same applies in Ireland and that deterrence strategies (e.g. highlighting possible sanctions) dissuade taxpayers from non-compliant behaviour.
Furthermore, Revenue's regular, large-scale customer surveys seek views of taxpayers on the influence of various sanctions on their compliance behaviour. Surveys of small to medium sized enterprises and chargeable persons (self-employed individuals) confirm that, while most taxpayers view tax compliance as a matter of civic responsibility, the sanctions applied by Revenue in line with the overall legislative framework are important factors in deterring non-compliance.
