Denis Naughten
Ceist:47 Mr. Naughten asked the Minister for Finance the reason so few random audits were undertaken by the Revenue Commissioners in 1997; if the number has increased in 1998; and if he will make a statement on the matter. [19589/98]
Written Answers. - Revenue Audit Programme.
I am informed by the Revenue Commissioners that the level of random audits up to 1998 was comparatively low because the yield from such audits was substantially lower than from targeted audits. Revenue's experience indicates that approximately two-thirds of random audits result in no additional tax liability being discovered, and in those cases where tax is recovered the amounts tend to be small. However, the Revenue Commissioners are aware of the deterrent effect of a random audit programme and the need to demonstrate to every taxpayer that there is a real risk of audit selection. In recognition of this, the Commissioners are increasing the number of random audits. The 1998 figure is expected to be twice the figure for 1997, and it is expected that the figure for 1999 will be three times the 1997 figure.