Vol. 542 No. 6
157 Mr. Callely asked the Minister for Finance the number of people who are in the PAYE system; if he will give a comparison figure for people on self assessment; if the Revenue Commissioners are satisfied with compliance by people on self assessment; and if he will make a statement on the matter. [24832/01]
I am advised by the Revenue Commissioners that the total number of income earners on tax record whose main source of income is from PAYE sources is estimated at 1,613,100 in the current year. This number includes some 107,000 who are also required to complete self-assessment income tax returns in respect of income derived from sources other than employment subject to PAYE. A further 222,000 income earners whose main source of income is derived from self-employment or investments are also subject to self-assessment. The figures for the numbers of PAYE and self-employed taxpayers given are projected estimates and are subject to revision. A married couple that has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
Revenue are satisfied that there has been a significant improvement in tax compliance since the introduction of self-assessment, and particularly in recent years. Revenue is working hard to continue that improvement with my full support. In the 1999 Finance Act I brought forward a major package of powers to underpin Revenue's audit effectiveness and I understand it is actively using those powers to tackle non-compliance. I have also recently sanctioned a major increase in its staffing resource. I understand that some 200 additional Revenue auditors have been appointed in recent months.
Revenue has also put in place improved arrangements to ensure that early and effective action is taken in relation to taxpayers on self-assessment who fail to file their returns and pay their tax liabilities on time. While there is no reason to be complacent about tax compliance there have undoubtedly been real improvements in recent years. The self-assessment system, by allowing Revenue staff to be moved from processing activities to audit and enforcement, has contributed significantly to that improvement.
