Liz McManus
Ceist:15 Ms McManus asked the Minister for Finance the proposed role of the new large cases division within the Revenue Commissioners; and if he will make a statement on the matter. [25776/03]
Written Answers. - Revenue Commissioners.
I am informed by the Revenue Commissioners that their new large case division became fully operational on 1 November 2003. Its objective is to ensure the highest possible level of compliance in relation to all taxes and duties by the largest corporate groups and professional partnerships and by the wealthiest individuals in Ireland. The division will deal with approximately 320 corporate groups and professional partnerships with turnover in excess of €125 million per annum and with approximately 250 individuals with net assets in excess of €50 million. The division will also deal with the entire financial services industry because of the specialist nature of their business. The division will also have two specialist units dealing with the direct and indirect taxes dimensions of tax avoidance.
Virtually every area of interaction between Revenue and these large taxpayers will be managed by the division. It will deal with income and corporate taxes, value added tax, customs and excises and capital taxes. This will allow for a total overview of each taxpayer's affairs and will facilitate the more effective management of compliance.
The division will be divided into 12 business units, nine of which will focus on the major business sectors in the Irish economy with one concentrating on high wealth individuals and the remaining two on tax avoidance. This specialisation will allow for research into the specific risks to revenues in various economic sectors, for the growth of understanding of business within Revenue and for targeted training of staff.
Compliance will be managed through the interaction of risk-driven audit and investigation programmes with technical support and service for the large taxpayers. Technical support will, in part, have the objective of influencing the taxpayers to adopt high compliance practices. The division is establishing contact with senior management of the large businesses in its case base in an attempt to put in place in these businesses agreed frameworks of good compliance practice and a tax compliance ethic as a key element of good corporate governance.
Large case divisions are a feature of the structures of almost all advanced tax administrations and the Irish model has taken on board many of the experiences of these administrations.