Dáil Éireann díospóireacht -
Thursday, 2 Jun 1994

Vol. 443 No. 6

Written Answers. - Uncollected Taxes.

Eamon Gilmore

Ceist:

29 Mr. Gilmore asked the Minister for Finance the total estimated amount outstanding in uncollected taxes following the recent tax amnesties; the total amount written off by the Revenue Commissioners for the latest year for which figures are available; the steps, if any, that are being taken to ensure the collection of outstanding taxes; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

I am informed by the Revenue Commissioners that the latest published figures were included in the 1992 Annual Report of the Comptroller and Auditor General and Appropriation Accounts and showed the position regarding uncollected taxes at 31 May 1993, and the amount written off during the year 1992. The position as at 31 May 1994, taking account of the recent tax amnesties, will be shown in the 1993 report which will be published later this year.

The 1992 report showed a total of £2,437 million in outstanding taxes, of which £531 million was shown as likely to be collected and a total of £97.8 million written off in the year.

The Government has taken unprecedented action in the last few years to improve the administration of the taxation system and the collection of current taxes as well as those in arrears.

Among the initiatives taken were the following: — the progressive development of the self-assessment system and accompanying audit programme for personal and company taxation; a withholding tax on professional fees was introduced; tax clearance requirements have been greatly extended and additional resources have been given to the Revenue Commissioners for collection and enforcement initiatives and their enforcement powers have been significantly increased.

As to results, some of those measures have already contributed to better collection and enforcement of tax obligations as evidenced by the ongoing reduction in outstanding amounts shown in the reports of the Comptroller and Auditor General for the past seven years to 31 May 1993.

	£ million
31/05/87	4,172
31/05/88	4,107
31/05/89	3,501
31/05/90	2,985
31/05/91	2,718
31/05/92	2,538
31/05/93	2,437

An overall reduction of £101 million in the amount outstanding is noted for the most recent twelve month period reviewed by the Comptroller and Auditor General. It is also noted that this reduction occurred in a period during which over £8,108 million in additional charges fell due for collection.

I must emphasise that the Comptroller and Auditor General points out in his report that the Revenue Commissioners estimate that £531 million only of the £2,437 million is likely to be collected. The reason for the difference is that the figure of £2,437 million consists largely of estimates, which were made by tax inspectors in the absence of returns from taxpayers. It also includes a sum in the region of £420 million relating to cases in liquidation or receivership, about 10 per cent only of which is likely to result in payments. Therefore, to quote a figure of £2,437 million without putting that figure into its proper context gives a misleading impression.

Following the recent amnesty, and as indicated in my Budget Statement, the Revenue Commissioners will be using their enforcement powers to full effect to pursue collection of outstanding taxes.