Dáil Éireann díospóireacht -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Tax Compliance.

Joan Burton

Ceist:

85 Ms Burton asked the Minister for Finance the specific actions which have been taken to meet the commitment given in An Agreed Programme for Government that everyone is tax compliant; and if he will make a statement on the matter. [25545/02]

Minister for Finance (Mr. McCreevy)

It is my intention to provide every support which I consider appropriate to the Revenue Commissioners in carrying out their task of improving tax compliance.

The Revenue Commissioners are currently well placed to do this, having at their disposal a large body of enhanced audit and investigative powers, much of which was provided during my term of office as Minister for Finance, as well as having considerable additional staffing resources – over 400 additional staff sanctioned over the last two years, for example. My aim is to build on this strong base already established and any further actions deemed necessary or desirable in this regard will be considered on an ongoing basis.

I should point out that under Revenue's current statement of strategy they are committing greater efforts and resources to improving returns filing and tax payment compliance. They are also increasing the resources that are devoted to Revenue's audit and compliance programmes. Revenue will continue to tackle the shadow economy by identifying and registering all customers with a tax liability and following up taxes due.

In the audit area the Revenue Commissioners have undertaken a number of recent key strategic developments with an overall objective of delivering on their commitment to maximise compliance. These include: commissioning a computerised risk-based case selection system for revenue audit; revising the code for Revenue auditors to ensure that the level of penalties levied reflects the seriousness of the tax default; and the LINKS project, which is in the course of development, will link all computer records and all data held by Revenue so that a better overall view of a defaulting taxpayer can be established in order to help tailor compliance and audit action.

As the Deputy may be aware, the Revenue Commissioners are undergoing a process of restructuring with a view to increased efficiencies in managing the tax system. This restructuring will facilitate an even more focused response to tax compliance.

Under this restructuring, Revenue set up recently a large cases division with specific focus on the largest cases and wealthiest individuals to ensure that they are tax compliant. A prosecutions division to deal with prosecutions of persons involved in serious tax evasion has also recently been established.

There are other areas from which Revenue hope to divert resources to compliance operations. For example, the introduction and success of pay and file has reduced the number of contacts with Revenue. In particular, the expansion of the Revenue on line service – ROS – will allow for the release of resources to compliance operations.

The Revenue Commissioners consider that the implementation of these efforts and initiatives should result, over time, in a continued improvement in compliance.