Dáil Éireann Debate, Tuesday - 15 July 2014
228. Deputy Pearse Doherty asked the Minister for Finance the partial and full-year revenue that would be raised for the Exchequer by increasing Revenue Commissioners' personnel by 125 qualified persons to target tax evasion and black-market activity, as per the Revenue Commissioners' contribution to the initial comprehensive review of spending. [31248/14]
Amharc ar fhreagraI am advised by the Office of the Revenue Commissioners that Revenue's Comprehensive Review of Expenditure 2011 noted that by increasing audit, investigation and compliance resources by c.125 staff an additional exchequer yield of €100m per annum could be achieved. In addition it noted that there is a significant deterrent and voluntary compliance effect on behaviour of an effective, risk based compliance programme. The additional yield was based on an estimate that each additional fully trained auditor has the capacity to bring in an average of €800,000 in audit yield. The investment in the training and development of a Revenue Auditor can take up to three years, depending on previous relevant experience. Therefore the full additional yield would not be available immediately.
Revenue undertakes a range of risk management interventions to target and confront those who do not comply, including tax evasion and black market activity. The objective is that people are deterred from filing inaccurate returns and from engaging in shadow economy activity and smuggling. The range of interventions has increased since 2011. Interventions include appraisals, aspect queries, profile interviews, assurance checks, enforcement, investigation and prosecutions, as well as audits. The appropriate intervention depends on the relevant risk. The average rate of return on each type of intervention varies depending on the intervention. In some types of interventions to tackle evasion and the black economy, such as enforcement, the focus is on the detection of drugs and fiscal smuggling where the direct exchequer yield is not the immediate objective.
It must also be recognised that Revenue has to prioritise its resources and must, for example, encourage voluntary compliance by making it easier and less costly to comply. I am satisfied that Revenue appropriately prioritises its available resources to achieve the strategic objective of a more tax and customs compliant society and a Revenue Administration that fosters economic recovery and development. The 2015-2017 Comprehensive Review process is on-going. Revenue proposes to publish its Comprehensive Review of Expenditure 2014 when the deliberative process is completed.
