Dáil Éireann Debate, Wednesday - 23 June 2004
2 Ms Burton asked the Minister for Finance if he will make a statement on the recently published Annual Report of the Revenue Commissioners for 2003; the way in which the €1.52 billion raised as a result of special investigations by the Commissioners has been used or will be used; if legislative or administrative changes are planned arising from the report; and if he will make a statement on the matter. [18745/04]
Amharc ar fhreagraI welcome the recently published report of the Revenue Commissioners for 2003. The report indicates that the Revenue Commissioners are making significant progress on many fronts, including the special investigations referred to by Deputy Burton.
As regards the €1.52 billion raised as a result of these investigations, it is important to note that €596 million was the amount received to date. The remainder is reflected in the budgetary arithmetic for earlier years and served to improve the Exchequer balance in the years in which the relevant amounts arose. With regard to the amounts received this year, and how any additional amounts forecast may be used, it is important to recognise that such receipts are once-off in nature and cannot be treated as ordinary or ongoing resources. This fact has been recognised in the past when such once-off receipts from, for example, tax amnesties or the sale of State assets, have been used mainly to meet liabilities with no recurring costs such as reducing our debt burden or providing for future pension needs. Reductions in debt lead to interest savings which provide leeway to meet the Government's tax and expenditure targets in future years.
I have no specific plans, at this time, for legislative changes arising directly from the 2003 annual report of the Revenue Commissioners. However, general legislative provisions governing the tax system are considered annually in the context of the Finance Bill. In addition, my Department and the Office of the Revenue Commissioners are examining the recommendations contained in the report of the Revenue powers group which reported to me last November. I will consider those recommendations in the context of the forthcoming Finance Bill.
Administrative changes are primarily a matter for the Revenue Commissioners. At this time, I am not aware of any planned administrative changes arising directly from the recent annual report, but administrative procedures are kept under regular review by the Revenue Commissioners.
Will the Minister for Finance take this opportunity to acknowledge that tax evasion has been a way of life for an elite of business people and builders primarily associated with Fianna Fáil, its fund-raisers, and the former Taoiseach, Charles Haughey and his agent, Mr. Traynor? Now that €1.5 billion has been collected, of which more than €500 million has been collected this year, will the Minister agree to set up a fund or trust to recompense honest and compliant taxpayers? Many of them are now pensioners and are forced to endure stays on hospital trolleys. Will he put the money garnered from the tax evaders and from that Fianna Fáil golden circle into the health service, public transport and major initiatives on the care of our elderly senior citizens who paid their taxes when these other people did not?
With regard to administrative changes, has the Minister noted in the Revenue Commissioners' report that a mere 16,000 audits, which is a very small percentage, resulted in a yield of more than €400 million? That was an increase of €160 million on last year. Does the Minister agree that there should also be a corruption assets bureau to deal with those people who, unlike most of their fellow citizens, continue to avoid or evade paying their fair share of tax which goes towards paying for our health and education system?
The success of the Revenue Commissioners in collecting these large amounts of money is testament to changes we made in the legislation over a number of years, primarily changes made in the Finance Act 1999. These gave considerable new powers to the Revenue Commissioners and at a level to which they could only have aspired in preceding years.
Tax evasion is, and always has been, an offence. However, the Deputy makes the political allegation that all the money collected from people in default involved only Fianna Fáil supporters. I do not know what evidence she has in that regard. Since approximately 40% of the people vote for Fianna Fáil, I assume that 40% of the people in the list are probably Fianna Fáil supporters. However, I have no evidence to suggest the figure is higher or lower.
The Minister should read the list.
Up to the end of May, approximately €596 million was collected through these investigations. The Deputy is correct that 15,770 audits were conducted last year which yielded approximately €429 million. The Revenue Commissioners hope to secure considerably more on foot of the offshore assets investigation which is ongoing. In that context, a number of people availed of the 60 day limit to pay their taxes by 29 May.
Of the €2.9 billion extra in current resources last year, on top of the amount for 2002, 83% was spent on health and education. It might interest the Deputy to note that if one added all the moneys collected from the investigations conducted — the bogus non-resident accounts, including the bank look-back audit; the voluntary disclosure in 2001; and, after November 2001, the offshore assets, Ansbacher, NIB, Clerical Medical and all the tribunals — and compared that with the total amount of tax collected over the past 20, 25 or 30 years, it would amount to the minute percentage of less than 0.5%.
Is the Minister saying that the tax evasion carried out by these people is simply to be dismissed as minor? It is a sum of €1.5 billion. There is a Cabinet memo which states that €400 million would pay for the opening of idle hospital beds which could be used for elderly people who honestly paid their taxes in the 1970s and 1980s. The Minister's tone with regard to the people who are named on the list is shameful. It is a shame that he could not state that they should have been paying the proper amount all along and instead said that the amounts were trivial. Shame on the Minister.
We must proceed to the next question. I call Question No. 3.
The amounts of money are substantial. If the Deputy asked any of the individuals who must pay them, they would testify that they are substantial and that it is painful to pay them. Everybody should pay his or her correct amount of tax every year and on time.
