In each Budget since Budget 2016, I have introduced a series of ‘compliance measures’ among the taxation policy changes. These are specific Revenue programmes or initiatives aimed at raising tax collection through enhanced taxpayer compliance. In each year I have also assigned additional resources to Revenue to help them to deliver these measures.
The Budget 2016 compliance measures were projected to yield an additional €75 million to the Exchequer. Revenue analysis indicates that the target of €75 million was exceeded. Conservative estimates show the measures in total yielded between €120 million and €150 million. Revenue’s analysis is published at https://www.revenue.ie/en/corporate/documents/research/budget-2016-compliance-measures.pdf.
Budget 2017 compliance measures were projected to yield an additional €130 million to the Exchequer. Revenue analysis shows the target of €130 million was exceeded. Estimates prepared on a conservative basis indicate the measures may have yielded over €210 million in the year. Revenue’s analysis is published at https://www.revenue.ie/en/corporate/documents/research/budget-2017-compliance-measures.pdf.
Budget 2018 included further compliance measures projected to yield an additional €100 million to the Exchequer. This included an additional €50 million from employer compliance projects in preparation for PAYE Modernisation. I am advised by Revenue that analysis of Budget 2018 measures is currently underway and will be published in October. PAYE Income Tax receipts in 2018 were €14.5 billion, €235 million ahead of target. I am advised that Revenue’s preliminary analysis suggests employer compliance programmes have contributed to this surplus and it is likely from the evidence reviewed so far that the €50 million target has been exceeded.
Budget 2019 includes compliance measures of €50 million from employer PAYE compliance initiatives following the new real-time arrangements (PAYE Modernisation) becoming operational from 1 January 2019. While it is too early to assess the projection, as it reflects a target for the whole year, I am confident based on previous years’ experience that it will be achieved.