Róisín Shortall
Ceist:66 Ms Shortall asked the Minister for Finance the progress made to date by the large cases division established within the Revenue Commissioners; and if he will make a statement on the matter. [18600/04]
Amharc ar fhreagraWednesday, 23 June 2004
Ceisteanna (73)
Freagraí scríofa
I am informed by the Revenue Commissioners that the division was established last October. It is responsible for ensuring the highest possible level of tax and customs compliance by 340 of the largest business enterprises. This means firms with an annual turnover in excess of €125 million. The division is also responsible for 250 of the wealthiest individual taxpayers or those with an estimated net worth in excess of €125 million. It also deals with the entire financial services sector. Business units have been built around the main economic sectors and high wealth individuals and two further specialist units concentrate on counter-avoidance work.
The division operates a two-pronged strategy to ensure compliance. This involves audit and control programmes based on assessment of the risks in any area of tax or customs. There is also direct contact with the management of large businesses to encourage and support high compliance practices. An explanation is given on the downsides of non-compliance in terms of interest, penalties, publication and potential prosecution.
To date the division has written to all its large businesses and wealthy individuals explaining its strategy. It has met senior management of around 150 businesses as part of a programme that will involve meeting them all over the next year. Bilateral meetings have taken place with the main accountancy or tax advisory firms that deal with large businesses. Recently a seminar was held for the accountants or tax advisers.
Contact persons have been assigned to all the large businesses and wealthy individuals and they are now working with them. This is to help ensure the growth in Revenue of knowledge of these businesses and of their sectors to allow greater understanding of the main risk areas. The office want to ensure that the taxpayer and the tax adviser's interpretation of tax, customs law and practice corresponds with its interpretation.
Profiles of the risks associated with each tax and with customs have been compiled. At present profiles of the business sectors, businesses and individuals, including risk profiles, are being assembled to ensure that the audit programmes are directed at the areas of highest risk.
Substantial training and retraining of the division's staff has been under way for some months. They are being equipped to deal with the business and technical complexities presented by large taxpayers across the entire range of taxes, duties and customs. The training includes specialised training in computer auditing and forensic auditing.
Audit and control programmes are under way in all the business units. They focus on issues associated with the risk areas identified.
Question No. 67 answered with QuestionNo. 40.
Question No. 68 answered with QuestionNo. 33.