Written Answers. - Tax Collection.
Trevor Sargent
Ceist:
162
Mr. Sargent
asked the
Minister for Finance
the additional measures to be put in place to reverse the trend where the amount of tax outstanding at the end of May 2001 was £1,176 million, a £121 million increase on 2000.
[25434/01]
Trevor Sargent
Ceist:
163
Mr. Sargent
asked the
Minister for Finance
if he will increase substantially the measures to end tax evasion.
[25435/01]
I propose to take Questions Nos. 162 and 163 together.
I am informed by the Revenue Commissioners that the total Revenue debt as at 31 May 2001 amounted to £1,176 million – 1,493.2 million – which is an increase of £121 million – 153.6 million – in absolute terms over the previous year's debt. The debt as a percentage of net collection remained at the same level as the previous year at 6%. The increase in the debt results primarily from the substantial increase in the volume and value of Revenue's business in recent years – gross Revenue receipts increased by almost £10 billion – 12.7 billion – or 53% between 1997 and 2000.
Given this increase it follows that more tax will be in the course of collection at any particular time. The current nature of the increase in the debt is borne out by the fact that Revenue estimate that more of the total debt will be collected – £744 million, or 944.7 million – 63% – out of the total of £1,176 million, or 1,493.2 million, as at May 2001, as against £559 million, or 709.8 million – 53% – out of the total of £1,055 million, or 1339.6 million, in 2000. The balance of the debt on record which is not expected to be collected is old or estimated debt or relates to firms that have gone out of business.
While the outstanding debt on record does not represent an increase in tax evasion, it is the case that there have been significant disclosures of tax evasion in recent years. Revenue have assured me that they are using the new powers given to them in the Finance Act, 1999, and additional staff to pursue vigorously all the investigations they have launched to deal with this evasion.
Revenue's Statement of Strategy 2001-2003 published in July of this year sets out a comprehensive programme of action that will be undertaken by Revenue to maintain the significant progress they have made in recent years in curbing the debt over the next three years. The debt has fallen from £3,500 million – 4,444 million – in 1988 to £1,176 million – 1,493.2 million – as at 31 May last. Revenue has set itself the objective of eliminating debt more than six years old, except where it is subject to proceedings that cannot be brought to a rapid conclusion.
It is not appropriate to compare the numbers of prosecutions for serious tax evasion with those in the social welfare area. Prosecutions for serious tax evasion are normally criminal prosecutions demanding a very high level of proofs. Since 1996 16 such prosecutions have been completed and prison sentences – some suspended – were handed down in seven of these cases. Revenue are increasing their efforts to secure prosecutions in appropriate cases and a new prosecutions division is being set up for this purpose.
Social welfare prosecutions are more akin to Revenue summary prosecutions for non-filing of tax returns. In the year 2000 Revenue issued warnings of such prosecutions in 8,190 cases. Legal proceedings were initiated in 2,676 cases. There were 1,017 convictions in non-filing cases in 2000.
