Vol. 402 No. 4
7 Mr. Noonan (Limerick East) asked the Minister for Finance if the Revenue Commissioners have made attachment orders to recover outstanding tax; and, if so, the number which have been made and the guidelines which are in operation.
I am informed by the Revenue Commissioners that to date attachment orders have issued in some 300 cases. In addition taxpayers have been put on notice of the Revenue Commissioners intention to issue such an order in a further 100 cases.
Attachment is one of a number of enforcement options available to the Revenue Commissioners where the tax fails to comply on a voluntary basis. Its use in a particular case is influenced by factors such as the nature of the default, the potential risk to the Exchequer and the effectiveness of alternative methods of enforcement.
In advance of taking attachment action in a particular case the taxpayer is put upon formal notice by way of written demand of the Revenue Commissioners intention to embark upon enforcement action. Specific reference is made in this demand to the power of attachment, so they are put on notice in advance.
In the event that the taxpayer fails to respond to this demand with a reasonable proposal for payment of his liabilities, then the Revenue Commissioners issue the notice of attachment to the relevant third party. Simultaneously a copy of the notice of attachment is served on the taxpayer.
(Limerick East): Let me thank the Minister for his reply which contains very full information on the guidelines that apply. Are attachment orders operated through the Revenue sheriffs or by the Revenue Commissioners directly to the third parties to collect outstanding amounts due by taxpayers? Has the Minister any information on the nature of the third parties being attached? Have wages been attached, for example? Have returns from co-operatives on the sale of milk or on the sale of animals at the mart been attached? Could the Minister indicate how effective the compliance by third parties is when attachment orders are made.
Since the commencement of attachment action in early 1989 this method of enforcement has been employed in some 400 cases to date. Of this number attachment orders have in fact issued in some 300 cases. The amount recovered on foot of the action from the 400 cases at present stands at £2.8 million. The power of attachment has been employed against a wide cross-section of occupational groups such as farmers, doctors, chemists, hauliers, solicitors, barristers, publicans, postmasters etc. There are none against politicians as yet, I see.
In general the order of attachment is directed against a debtor or a financial institution. Most of the banks have been the recipients of such orders together with building societies and life assurance companies. In addition orders have been served on various Government Departments, in particular the Department of Agriculture, in respect of headage payments and grants. The GMS has been the recipient of attachment orders in respect of doctors, dentists and chemists.
In addition to the direct yield derived from the use of the power of attachment it is considered that its existence and use has contributed to the maintenance of ongoing current collection. In common with all powers of enforcement the real benefit of attachment lies in its deterrent effects. I do not have the information as to whether they are operated by the sheriffs or direct. I will get it and communicate it to the Deputy.
(Limerick East): Have attachment orders been used, or is it the intention that they would be used, for the collection of PRSI payments, rather than for the collection of outstanding taxes?
I do not have the information here but to the best of my memory I see no reason why not. I see no reason why they could not be attached to wages if it is so wished. I do not see PRSI excluded. I will clarify the position and I will let the Deputy know, just to be absolutely certain.
