asked the Minister for Finance if it is with his approval and sanction that taxpayers resident in the counties of Cork and Kerry have been summoned to attend at Dublin Castle for interrogation by officials of the Revenue Department; if he will state by what statutory or other authority these summonses have been issued and interrogations held, and if it is proposed to continue the holding of these interrogations; if he will provide for payment of the expenses and for loss of time incurred by the attendances of such persons, as they have frequently to travel upwards of 400 miles (return journey) and remain absent from their homes for at least three days.
Ceisteanna—Questions. Oral Answers. - Revenue Officials' Interrogations.
I am not aware of any communications which can properly be described as "summonses" to attend at Dublin Castle having been issued by Revenue officials to taxpayers resident in the Counties of Cork and Kerry. In certain cases in which taxpayers have laid themselves open to proceedings for Income Tax penalties a letter, somewhat in the following terms, has been sent to the taxpayer concerned:
With reference to the Returns and Accounts furnished by you for 1928/29 and prior years, I shall feel obliged if you will be good enough to arrange to see me in the course of the next fortnight.
You might notify me in advance of the day and time it would be convenient for you to call.
It is quite obvious to the taxpayer in such cases, who has, of course, had previous correspondence either with the District Inspector or with an official at the Head Office, that the letter sent him is an invitation, not a "summons." It offers him an opportunity of discussing his case with an experienced and responsible official with a view to settling the matter under the powers of mitigation of penalties conferred on the Revenue Commissioners which I referred to in the course of a reply to the Deputy yesterday. The taxpayer can take advantage of this opportunity or not as he pleases. There is no compulsion about accepting the invitation, and he can, if he chooses, leave the Commissioners to take proceedings under the provisions of the Income Tax Acts for recovery of whatever penalties he has incurred. I consider it entirely right and proper that taxpayers should, as a general rule, be afforded opportunities such as I have indicated of discussing their cases with a view to a settlement before legal proceedings are taken.
As regards the expenses incurred by taxpayers, I gave the Deputy yesterday particulars of a case in which a taxpayer, who had laid himself open to proceedings for penalties amounting to £6,068, had his case settled on payment of a mitigated penalty of £1,357. It is obvious that the taxpayer in question was amply reimbursed for any expense incurred by him in arriving at a settlement. The amount of mitigation must, of course, depend on the circumstances in each particular case; but if taxpayers desire to secure mitigation of penalties, it is reasonable that they should bear whatever expense may be incidental to obtaining it.