The latest relevant information available on income tax receipts is in respect of the calendar year 1996. The average individual tax payment from each of the PAYE, farming and other self-employed sectors in 1996 is estimated at £4,308 for PAYE, £1,028 for farmers and £4,020 for other self-employed.
I am satisfied, on the basis of trend in tax receipts and from the information supplied by the Revenue Commissioners, that these payments are consistent with the income levels for each group. The efficiency of the tax collection system for all sectors of the economy has improved significantly in recent years. The Revenue Commissioners are continuing with their overall successful approach to compliance which is designed, on the one hand, to make procedures easier for those who are trying to meet their tax obligations and, on the other, to pursue people who do not pay on time or at all. Measures taken to improve collection and compliance include as follows:
(1) modern payment methods including direct debits;
(2) programmes to secure returns from those who do not file;
(3) the large-scale targeted audit programme which resulted in some £132.6 million being collected in 1996;
(4) the random audit programme which exposes every taxpayer to the risk of audit;
(5) introduction of withholding tax and tax clearance procedures;
(6) significant use of the power to attach assets of tax defaulters, as well as other strong enforcement measures;
(7) new local collection and arrears compliance initiative;
(8) measures to tackle black economy operators and
(9) a more active prosecution policy in cases of serious evasion.
Revenue have confirmed that these measures, which are to be intensified under Revenue's new corporate plan, are underpinning the improved compliance in the tax system in recent years. The measures needed are reviewed each year on the basis of Revenue's analysis of the returns and levels of compliance for that year.