Dáil Éireann Debate, Tuesday - 13 December 2022
243. Deputy Cormac Devlin asked the Minister for Finance the number of audits initiated by the Revenue Commissioners during the years 2016 to 2021 and to 1 December 2022, by reason category that is, screening, business area or random selection, in tabular form; and if he will make a statement on the matter. [61919/22]
Amharc ar fhreagraI am advised by Revenue that it selects cases for compliance intervention based primarily on risk, although a small proportion of random interventions are carried out each year in order to test risk assumptions. Each intervention is intended to be in the form which is most efficient in terms of time and resources, and which imposes the least cost on both the taxpayer and on Revenue, whilst properly addressing perceived risks.
Prior to 1 May 2022, Revenue carried out compliance activities which could be broadly categorised as audit or non-audit (the “non-audit” categories comprising a range of less intrusive interventions to test specific risks).
On 1 May 2022, Revenue implemented a Compliance Intervention Framework which provides a consistent and graduated response to taxpayer behaviour, ranging from extensive opportunities to voluntarily correct mistakes up to the pursuit of criminal sanctions for serious cases of evasion. There are three different intervention levels within the framework and these levels are set out for taxpayers in the Code of Practice for Revenue Compliance Interventions. Revenue Audits are one of two risk-based inquiries which fall within the Level 2 category.
Revenue’s compliance framework supports compliance through real-time engagement with taxpayers and real-time compliance management of its segmented case-base. It incorporates its traditional tax audit approach within a Compliance Intervention Framework that provides for a consistent, graduated response to risk and taxpayer compliance behaviour. The statistics related to Audits are included in this summary.
I am advised that the decline in random audits and other interventions reflects a changed policy whereby cases chosen randomly are subject to an in-depth appraisal with only cases indicating risk during the appraisal process being subject to a compliance intervention.
I am further advised that the Covid-19 related restrictions caused significant disruption to Revenue’s operations, with both the necessary suspension of on-site intervention activity and a focus on business support schemes. The wage subsidy schemes leveraged real time payroll reporting and the implementation and oversight of these schemes provided valuable insights into business activity and compliance with PAYE. During this period, Revenue carried out a significant amount of non-audit compliance activities in relation to the range of support schemes that it administered.
The Temporary Wage Subsidy Scheme (TWSS) provided supports to over 67,000 employers throughout the scheme. Revenue undertook a programme of compliance checks on all employers who participated in the TWSS to ensure that they were properly eligible to receive the supports and to ensure the funds were paid out to qualifying employees. The TWSS compliance checks are in addition to the statistics provided in the table below.
For the Employment Wage Subsidy Scheme (EWSS), 7,861 employers or 15% of all employers who claimed the subsidy will have had a compliance check reviewing their eligibility for the scheme planned or completed before the end of 2022. The EWSS checks are included in the statistics provided in the table below.
2016
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
91 |
88,265 |
88,356 |
|
Profile Interview |
1 |
1,379 |
1,380 |
|
|
Audit |
618 |
5,303 |
5,921 |
|
|
Investigation |
2 |
113 |
115 |
|
|
Personal taxes |
Aspect Query |
6,465 |
6,465 |
|
|
Audit |
3 |
3 |
||
|
Investigation |
1 |
1 |
||
|
Customs |
Aspect Query |
49 |
3,363 |
3,412 |
|
Profile Interview |
61 |
61 |
||
|
Audit |
11 |
272 |
283 |
|
|
Total |
772 |
105,225 |
105,997 |
2017
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
39 |
81,140 |
81,179 |
|
Profile Interview |
3 |
5,201 |
5,204 |
|
|
Audit |
495 |
3,892 |
4,387 |
|
|
Investigation |
1 |
217 |
218 |
|
|
Personal taxes |
Aspect Query |
11,980 |
11,980 |
|
|
Profile Interview |
17 |
17 |
||
|
Audit |
5 |
5 |
||
|
Investigation |
5 |
5 |
||
|
Customs |
Aspect Query |
5 |
4,613 |
4,618 |
|
Profile Interview |
105 |
105 |
||
|
Audit |
5 |
201 |
206 |
|
|
Total |
548 |
107,376 |
107,924 |
2018
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
333 |
79,730 |
80,063 |
|
Profile Interview |
111 |
4,522 |
4,633 |
|
|
Audit |
258 |
3,162 |
3,420 |
|
|
Investigation |
329 |
329 |
||
|
Personal taxes |
Aspect Query |
10,102 |
10,102 |
|
|
Profile Interview |
9 |
9 |
||
|
Audit |
3 |
3 |
||
|
Investigation |
1 |
1 |
||
|
Customs |
Aspect Query |
11 |
3,136 |
3,147 |
|
Profile Interview |
82 |
82 |
||
|
Audit |
13 |
258 |
271 |
|
|
Total |
726 |
101,334 |
102,060 |
2019
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
55 |
73,657 |
73,712 |
|
Profile Interview |
7 |
2,250 |
2,257 |
|
|
Audit |
99 |
2,055 |
2,154 |
|
|
Investigation |
87 |
87 |
||
|
Personal taxes |
Aspect Query |
53 |
10,024 |
10,077 |
|
Profile Interview |
16 |
16 |
||
|
Audit |
4 |
4 |
||
|
Investigation |
11 |
11 |
||
|
Customs |
Aspect Query |
8 |
4,130 |
4,138 |
|
Profile Interview |
215 |
215 |
||
|
Audit |
26 |
258 |
284 |
|
|
Total |
248 |
92,707 |
92,955 |
2020
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
50 |
48,769 |
48,819 |
|
Profile Interview |
568 |
568 |
||
|
Audit |
5 |
523 |
528 |
|
|
Investigation |
28 |
28 |
||
|
Personal taxes |
Aspect Query |
4,666 |
4,666 |
|
|
Profile Interview |
3 |
3 |
||
|
Audit |
5 |
5 |
||
|
Customs |
Aspect Query |
10 |
3,824 |
3,834 |
|
Profile Interview |
106 |
106 |
||
|
Audit |
13 |
128 |
141 |
|
|
Total |
78 |
58,620 |
58,698 |
2021
|
Category |
Intervention Type |
Random |
Risk-Based |
Total |
|
Business taxes |
Aspect Query |
39 |
46,511 |
46,550 |
|
Profile Interview |
468 |
468 |
||
|
Audit |
13 |
635 |
648 |
|
|
Investigation |
51 |
51 |
||
|
Personal taxes |
Aspect Query |
78 |
3,679 |
3,757 |
|
Profile Interview |
1 |
1 |
||
|
Audit |
2 |
2 |
||
|
Investigation |
3 |
3 |
||
|
Customs |
Aspect Query |
32 |
4,383 |
4,415 |
|
Profile Interview |
84 |
84 |
||
|
Audit |
12 |
182 |
194 |
|
|
Total |
174 |
55,999 |
56,173 |
2022 (Up to and including 30th November 2022)
|
Business Taxes |
Aspect Query (Pre-CIF) |
40 |
15,093 |
15,133 |
|
L1 Intervention (CIF other than PI) |
79 |
26,232 |
26,311 |
|
|
Profile Interview (CIF and Pre-CIF) |
694 |
694 |
||
|
L2 Risk Review (CIF) |
721 |
721 |
||
|
Audit (CIF and Pre-CIF) |
5 |
279 |
284 |
|
|
Investigation (CIF and Pre-CIF) |
1 |
29 |
30 |
|
|
Personal taxes |
Aspect Query (Pre-CIF) |
1,397 |
1,397 |
|
|
L 1 Intervention (CIF other than PI) |
1,524 |
1,524 |
||
|
Profile Interview (CIF and Pre-CIF) |
3 |
3 |
||
|
L 2 Risk Review (CIF) |
358 |
358 |
||
|
Audit (CIF and Pre-CIF) |
13 |
13 |
||
|
Customs |
Aspect Query |
1,328 |
1,328 |
|
|
Other Non-Audit Interventions |
23 |
2,175 |
2,198 |
|
|
Profile Interview |
144 |
144 |
||
|
Audit |
87 |
125 |
212 |
|
|
Total |
235 |
50,115 |
50,350 |
