Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank Ms Feehily and her colleagues for their attendance to discuss an issue that many people find difficult to grasp. I have read the report, Revenue's responses to same and the documentation that Revenue sent the committee last week in advance of this meeting. Having also read Ms Feehily’s statement, my impression is that Revenue does not take the issue seriously. The Accounting Officer’s response is detailed in the last paragraph on page 167 of the Comptroller and Auditor General’s report. In it, she agreed in part to recommendation No. 11.1. The response reads, "Revenue's policy is to ensure maximum compliance with VIES legislation at least possible cost and administrative burden for businesses". In her one-page opening statement, she stated that Revenue was "conscious of the administrative burden it places on compliant businesses". Twice, she almost apologised for the administrative burden caused by the VAT information exchange system, VIES. I will not dwell on the matter, but I have heard no concern about the administrative burden placed on pensioners who have no access to computers when paying their property taxes. It is as if Revenue will understand if businesses cannot fill up all of their forms properly.

Last week, the HSE appeared before the committee. The Revenue Commissioners comprise the country's largest revenue generator and the HSE is its biggest spender. When we asked the latter about the cost of drugs, we were told that it did not discuss the matter with the companies involved but with a committee they had set up to engage with it. Is there an attitude at the highest level in the public service of apologising to major IDA companies for being upset by administrative burdens? The HSE would not like to upset companies by holding direct discussions on the cost of medicines. My impression is that Revenue is great at tackling the little person but it is afraid of a complaint from the IDA about upsetting client multinationals and making the IDA's life more difficult.

In its detailed letter to the committee, Revenue did not deal with the issue of the potential €200 million. Judging by the correspondence, Revenue can neither deny nor confirm anything. It does not know. The Comptroller and Auditor General has made a rough estimate of €1.3 million at the aggregated VAT rate, depending on the nature of the product. It is not definitive, but Revenue appears unable to disprove the estimated potential loss to the Exchequer of €200 million. This is the approximate amount intended to be collected in the form of property tax this year. Consider the effort involved in that regard. Revenue apologises to exporters for administrative burdens. Although I wish to discuss the specifics, this is my impression from Ms Feehily's response to the report and her opening statement. Why should Revenue worry about their administrative burden? They must comply with the law of Europe. It is their problem.