Dáil Éireann díospóireacht -
Wednesday, 27 May 1992

Vol. 420 No. 4

Written Answers. - Tax Evaders.

Dick Spring

Ceist:

80 Mr. Spring asked the Minister for Finance if, in view of the fact that any third party information which could potentially be required in regard to a tax return must be in order for the tax year most recently ended, he will outline any policies he plans to implement to discover which companys' affairs are in order, thus providing a context for a true crackdown on tax evaders, and if he will provide a timetable for the implementation of these reforms.

Minister for Finance (Mr. B. Ahern)

"Third party" information has been a feature of the tax code since 1960. At present such returns need to be made only when requested by a notice from an Inspector of Taxes. The Finance Bill, 1992 provides that, in respect of the tax year 1992-93 or in the case of companies for accounting periods ending on or after 6 April, 1993, these returns will have to be made automatically without any notice from the Inspector, that is, on a Self Assessment basis. Implementation of the provision was deferred for a year, to the periods to which I have referred, in order to allow businesses to adapt their systems so that the information required for the returns will be collected at the same time as the related transactions. Pending the receipt of the first "Self Assessment" returns the existing powers to request the information will continue to be used in individual cases.

In order to clarify points which have arisen in relation to these returns, Revenue will issue a Statement of Practice setting out the types of payment which must be returned without notice and also giving general guidance on how the system is to operate. This Statement is now being drafted.

Revenue already has manual and computerised procedures in place for the organisation and use of information and its linking with the taxpayers concerned. These are being further developed to expedite the linking and tracing of large volumes of information.

As regards the general question of action to counteract evasion, the Deputy will be aware of the progressive increase in the audit programme being carried out under the Self Assessment System and of the new powers in the Finance Bill, including the provisions referred to by the Deputy, which will assist the Revenue Commissioners in this task. Increasingly, Revenue resources are being freed from traditional work to concentrate on antievasion activities.

The Deputy's question seems to imply that a "true crackdown on evasion" is necessary. It is my view, and that of most commentators, that the 1992 Bill represents very significant progress in the drive against evasion.