Dáil Éireann díospóireacht -
Tuesday, 7 Apr 1992

Vol. 418 No. 4

Written Answers. - Drinks Industry Tax Evasion.

Enda Kenny

Ceist:

81 Mr. Kenny asked the Minister for Finance if he will make a statement on reports of tax evasion in the drinks industry to the extent of £100 million; if he will outline whether these reports are true; if he will give details; and if he will further make a statement on his proposals in this regard.

Minister for Finance (Mr. B. Ahern)

I have been advised by the Revenue Commissioners that the examination of particular commercial sectors is part of their ongoing audit programme. The drinks trade was the first such sector examined.

The examination brought to light a number of malpractices of varying degrees of seriousness linked to tax evasion and the Revenue Commissioners are satisfied that there is a solid core in the industry who have a case to answer. The investigations are not yet complete and as part of the operation, the commissioners have invited members of the trade involved in malpractice to make a full disclosure by 1 July with payment of any amounts outstanding by 1 September. In accordance with the usual practice traders who make a voluntary disclosure will benefit from the less severe penalty regime which the legislation permits. More extensive audits in the industry will be undertaken later in the year to ensure that evaders who have not made a disclosure are brought within the full rigours of the law.

The commissioners have advised me that they are unable to estimate the amount of undisclosed tax liabilities at this stage in the investigation. Accordingly, I am not in a position to comment on the £100 million figure quoted by the Deputy but I understand that it may be based on suggestions from sources within the trade of the value of sales involved in the malpractices concerned. I can say, however, that the commissioners have advised me that there will be additional yield arising from their investigations through collection of back taxes, interest and penalties and a higher degree of future compliance.