Thursday, 1 February 2018

Ceisteanna (85, 86, 87, 88)

Michael McGrath

Ceist:

85. Deputy Michael McGrath asked the Minister for Finance the number of tax appeals before the Tax Appeals Commission; the value of tax these disputes amount to; the appeals by ranges (details supplied) respectively, in tabular form; and if he will make a statement on the matter. [5270/18]

Amharc ar fhreagra

Michael McGrath

Ceist:

86. Deputy Michael McGrath asked the Minister for Finance the age and value of tax appeals before the Tax Appeals Commission by ranges (details supplied) respectively, in tabular form; and if he will make a statement on the matter. [5271/18]

Amharc ar fhreagra

Michael McGrath

Ceist:

87. Deputy Michael McGrath asked the Minister for Finance the number of new appeals brought before the Tax Appeals Commission in each month since January 2016; the number of cases concluded in each month since January 2016; and if he will make a statement on the matter. [5272/18]

Amharc ar fhreagra

Michael McGrath

Ceist:

88. Deputy Michael McGrath asked the Minister for Finance the number of appeals before the Tax Appeals Commission that have been concluded since January 2016 that have been settled; the value of the settled; the number that have been withdrawn; the value these amounted to; the number of cases that have been heard; the value these appeals amounted to; and if he will make a statement on the matter. [5273/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 85 to 88, inclusive, together.

The TAC was established and new procedures for making, processing, adjudicating and determining appeals came into effect on 21st March 2016. Before this date taxpayers sent their appeals directly to Revenue who then transferred cases to the Appeal Commissioners when they were ready for a hearing. Since that date, taxpayers send their appeals directly to the TAC which then notifies Revenue of the appeals.  The TAC has full control over the processing and hearing of appeals.

I am advised by the TAC that the number of appeals before it can change frequently, depending on a number of factors, including the number of additional appeals received each day; the numbers closed each day; how many appeals are part-settled and how many that will settle based on the outcome of a “leader-case”. The Commission can also be informed, by an appellant(s) or the Revenue Commissioners, that an appeal has settled or been withdrawn which might indicate a reduction in the number of appeals on hand; however, until this is confirmed by both parties, the TAC cannot deem the matter closed.

I am further advised by the TAC that it is not possible, for the most part, to provide the age of tax appeals before it, as many of them were transmitted to the Commission, in large tranches during 2016 by the Office of the Revenue Commissioners. In relation to those ‘legacy’ appeals, some were submitted by the appellant in 2016, to Revenue, but many had been with Revenue for some time before that. Therefore, it is only possible to advise of when the TAC received appeals in 2016, 2017 and 2018.

Following its establishment in 2016, I am informed that approximately 3,322 appeals transferred to the TAC, at various stages during 2016, from both the Office of the Revenue Commissioners and the Office of the Appeal Commissioners. The TAC has further advised me that, as of 30 January, it currently has approximately 3,648 appeals under its remit.

The TAC has informed me that this figure comprises of the following active appeals:

Appeals received 2016: 499

Appeals received 2017: 1,475

Appeals received 2018: 251

Legacy Appeals: 968

Pre Establishment: 305

Cases Stated: 150

  The tables below have been provided by the TAC which reflect all new appeals received and those closed in 2016, other than legacy appeals and pre-establishment appeals relating to years prior to 2016. I have also been informed that a further 400 appeals which were received in 2016 have been closed since then, leaving a remaining total of 499 appeals.

As per table 2 below, the TAC received 1,743 new appeals in 2017. The table reflects all new Appeals received and those closed in 2017. Of these, I am advised that a further 16 have been closed in 2018, leaving a total of 1,475 appeals dating from 2017.

 Table 1 - New Appeals Per Month 2016

 

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Appeals Received

30

40

40

83

74

90

113

71

81

78

94

105

899

Appeals Closed

5

8

3

9

14

15

24

14

14

22

40

41

209

Table 2 - New Appeals Per Month 2017

 

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Appeals Received

561

77

173

90

105

81

111

88

105

93

108

151

1,743

Appeals Closed

5

13

18

16

66

24

30

14

9

24

9

24

252

Table 3 - New Appeals Per Month 2018

 

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Appeals Received

251

 

 

 

 

 

 

 

 

 

 

 

251

Appeals Closed

1

 

 

 

 

 

 

 

 

 

 

 

1

 I understand that the TAC has been working to establish a more comprehensive database of the material relevant to ongoing appeals with a view to being in a better position, in mid-2018, to report in a more useful manner. I look forward to the completion of the data compilation enhancements by the TAC which I expect will result in it being in a position to report in a timely and more comprehensive manner. The TAC will be submitting its annual report to me before 31st March 2018 which I expect will contain comprehensive statistical information in relation to appeals, hearings, adjudications and determinations and which will be laid before the Houses of the Oireachtas. My Department will continue to liaise with the Commission in relation to its resource requirements.

While Revenue also maintains statistics on appeals, for various reasons these will not necessarily correspond with those provided by the TAC. For example, there may be time lags in the notification of new appeals by the TAC to Revenue and also time lags in the closure of appeals by the TAC following settlement of an appeal by agreement between Revenue and the appellant. As the TAC is now the competent body for the management of appeals, I consider that it is appropriate that it be the primary source for appeals statistics. However, there is one important piece of information that the TAC does not currently receive for those appeals made directly to it. This is the value figure for the amount of tax that is outstanding or in dispute. I have been advised by Revenue that it would have no difficulty in providing the TAC with this information. This information could then be associated with the open appeals being managed by the TAC.

I have obtained the following information from Revenue in relation to the amount of tax in dispute with both corresponding value bands and age band.

Band (€)

Total in dispute (€)

Below   10,000 

3,358,955

10,000   to 50,000 

24,325,926

50,000 to 1,000,000

227,899,345

1,000,000   to 5,000,000 

298,752,433

Above   5,000,000  

1,054,644,264

 

 

Totals 

1,608,980,923 

Age (years)

Amount in dispute (€)

Less than 2

684,537,344

2 to 5 

567,293,382

6 to 10 

326,424,107

Older than 10 

30,726,090

 

 

Totals 

1,608,980,923