Dáil Éireann díospóireacht -
Thursday, 6 Nov 2003

Vol. 573 No. 5

Written Answers. - Tax Clearance Certificates.

Brendan Howlin

Ceist:

50 Mr. Howlin asked the Minister for Finance the nature and scope of the tax clearance certificates currently issued by the Revenue Commissioners; if the Revenue Commissioners are considering changes to the current system or adding further qualifications to certificates when issued; and if he will make a statement on the matter. [25772/03]

Minister for Finance (Mr. McCreevy)

The purpose of the tax clearance schemes is to ensure that persons, who derive an economic benefit from a licence or permit to conduct certain activities in the State or from the receipt of public contracts, and/or receive certain grants, subsidies and other payments from the State, and/or hold certain public offices as specified in the Standards in Public Offices Act 2001, are in compliance with their tax obligations. The following is a general outline of the scheme and I am arranging for full details of the scope and nature of the various schemes to be forwarded to the Deputy by Revenue.

In the case of persons receiving economic benefit or in receipt of a grant or other payments the taxes covered are income tax, corporation tax, capital gains tax and value added tax. In the case of public office holders, as well as these taxes, capital acquisitions tax is also covered.

A tax clearance certificate will be issued by the Revenue Commissioners to a person whose tax affairs are up to date. This means that the person: has paid all relevant taxes, interest and penalties known to be due or agreed a payment schedule; and has delivered all required tax returns.

Where an applicant for tax clearance fails to meet the criteria mentioned, a formal notification of refusal will be issued to the applicant. This notification will set out the reasons for refusal of the tax clearance certificate. Provisions are made in the Standards in Public Office Act for the issue of an application statement in certain circumstances where a decision is pending or where a refusal is being appealed.

It should, of course, be noted that tax clearance certificates are issued by the Revenue Commissioners at a particular point in time. They are, and can only be, based upon the information known to Revenue at that time, supported by a declaration from the taxpayer.

The schemes and activities which require tax clearance are diverse and the scope of tax clearance has been considerably extended over the years. This is demonstrated by the fact that some 58,652 tax clearance certificates were issued by Revenue in 2002. Qualifications to certificates are a matter for legislation and the various schemes involved are kept under review. Any changes which arise would be included in the relevant legislation.

The operation of the schemes is also kept under review by the Revenue Commissioners. In their statement of strategy 2003-2005, published in February of this year, the Revenue Commissioners have set compliance with tax and customs legislation as their primary goal. I am advised by the Commissioners that the tax clearance schemes have played an important part in improving tax compliance and will continue to have a valuable role in Revenue's compliance strategies.

Finally, as part of their strategy of promoting on-line business initiatives, Revenue has recently developed the facility to enable applicants to apply for tax clearance via the Revenue's websitewww.revenue.ie