Willie Penrose
Ceist:68 Mr. Penrose asked the Minister for Finance if he will make a statement on the report of the Comptroller and Auditor General in regard to the level of uncollected taxes. [23480/00]
Written Answers. - Tax Collection.
The recently published report of the Comptroller and Auditor General shows a further improvement in the collection of taxes. The balance outstanding, at £1,055 million, is down from £1,167 million last year, despite a very substantial increase in the net amount of tax collected. The arrears have fallen in absolute terms, and also as a percentage of net collection. At 6% of net collection, the arrears are at their lowest level ever, and clearly show how far the system has developed since 1988, when arrears amounted to £3,500 million represented 57% of net collection.
This improvement has been achieved through a combined approach, removing old, ill-founded and uncollectible charges from the record, while simultaneously improving the collection and caseworking systems to better address those liabilities which are properly due and collectible. Caseworking of individual liabilities is the main collection method employed, and has proved very effective in enabling Revenue to keep pace with a rapidly growing taxpayer base.
Of the total arrears of £1,055 million, Revenue estimates that some £560 million will prove to be collectible. The difference reflects the fact that much of the older arrear has had to be estimated in the absence of declarations from taxpayers, and that some of the debt arises from business failure, where there is no means of recovering the tax.