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Tax Compliance

Dáil Éireann Debate, Wednesday - 28 April 2021

Wednesday, 28 April 2021

Ceisteanna (284, 285, 286, 287)

Aodhán Ó Ríordáin

Ceist:

284. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the number of convictions for serious offences under section 1078 of the Taxes Consolidation Act 1997 in each of the years 2011 to 2020; and if he will make a statement on the matter. [21813/21]

Amharc ar fhreagra

Aodhán Ó Ríordáin

Ceist:

285. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the numbers of cases in each of the years 2011 to 2020 in which a conviction was obtained for a serious offence under section 1078 of the Taxes Consolidation Act 1997 in which the amount of tax loss attributable to the offence in question was less than €100,000, between €100,000 and €500,000, between €500,001 and €1 million and greater than €1 million, respectively; and if he will make a statement on the matter. [21814/21]

Amharc ar fhreagra

Aodhán Ó Ríordáin

Ceist:

286. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the number of persons that served prison sentences following conviction for serious offences under section 1078 of the Taxes Consolidation Act 1997; and if he will make a statement on the matter. [21815/21]

Amharc ar fhreagra

Aodhán Ó Ríordáin

Ceist:

287. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will report on the adequacy of the fines that the courts can impose for serious offences under section 1078 of the Taxes Consolidation Act insofar as they constitute a deterrent to tax evasion; when the fines were last increased; his plans for their alteration; and if he will make a statement on the matter. [21816/21]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 284, 285, 286 and 287 together.

I am advised by Revenue that it supports a strong culture of voluntary compliance through its comprehensive, risk-based approach to compliance management and is committed to tackling non-compliance in all its forms. Revenue uses a broad range of data, intelligence and analytical tools and technologies to identify and quantify risk in order to effectively identify, target and confront cases presenting a risk of non-compliance.

I am further advised that taxpayer behaviour determines the nature, extent and consequences of Revenue’s compliance interventions. Revenue’s interventions range from non-audit compliance interventions such as assurance checks, aspect queries and profile interviews to audit or investigations. It undertakes investigations where cases of serious tax and duty evasion and fraud are discovered, seeking to apply the full legal sanctions available that reflect the seriousness of the evasion involved.

The Deputy will be aware that Section 1078 of the Taxes Consolidation Act 1997 criminalises tax and duty evasion in general and specifically failures to comply with the provisions of the various Taxes Acts. Any person convicted on indictment of an offence under section 1078 is liable to a fine not exceeding €126,970 or, at the discretion of the court, a term of imprisonment not exceeding 5 years or both. The level of fines and prison terms imposed is a matter for the courts.

The level of fines provided for on conviction on indictment were last increased from IR£10,000 to IR£100,000 by section 211 of Finance Act 1999 with effect from 25 March 1999. The IR£100,000 fine on conviction on indictment was subsequently converted to its Euro equivalent of €126,970 in 2001.

I am satisfied that Revenue’s work in investigating cases of serious tax and duty offences with a view to prosecution has achieved a considerable level of success and I am advised by Revenue that the current levels of fines provided for in legislation are sufficient for the purposes of deterring tax evasion. I will, however, consider any future proposals for legislative change that may be brought forward by Revenue in the light of changing behaviour or emerging risks.

The table below outlines the number of indictable convictions for serious offences under section 1078 of the Taxes Consolidation Act 1997. It also provides a breakdown of the estimated tax loss subject to investigation by Revenue and the number of custodial sentences imposed by the courts. It should be noted that the estimated tax loss is based on estimation of tax loss when Revenue decided to proceed with investigation towards prosecution. In the time available, Revenue was not able to provide the estimated tax loss in all such cases.

Serious Offences

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