Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I will try to be as concise as possible. I thank Ms Feehily and her colleagues for being here and they may recall that I wrote to the Revenue Commissioners on 6 September on this issue, as I anticipated the problem that would be caused when seeking compliance for 1 January. I asked that the date be moved to 31 March. Will the witness comment on the fact that we are dealing with compliance and confidence in the collection system? People who have been compliant are really annoyed and we - I use that term because the legislation is flawed in some respects - have damaged public confidence in the collection system, which is unfortunate.

There is also a more significant observation. The witnesses have indicated that the Revenue Commissioners have offered seven options for payment, indicating the legislation stipulates it is due on or before 1 January. For the 35% of taxpayers who have availed of options declaring name, address and telephone details of banks along with account numbers, they will not pay on or before 1 January. The Revenue Commissioners have all the details they need so these people will not pay before 1 January. It might be assumed that others had the audacity not to give those banking details, and the Revenue Commissioners are insisting on payment before 1 January. These people include those paying by credit or debit card, cheque or postal order. That is 57% of people in total.

These are the people the Revenue Commissioners are going after and who will have to pay on or before 1 January. However, those who have given their banking details are being given an opportunity to spread it out over 12 months because the Revenue Commissioners have a fall-back position. They can go after those people if they are in some way non-compliant in the future. However, those who have said they will pay, but are not happy about paying, have also said they are damned if they are going to give their banking details. These people are being nailed to the cross in respect of this issue and that is unfortunate. They are very wise people not to give their banking details.

We have damaged the competence and collectiveness of and compliance with the tax code. We have done this in a calculated way because we want to corral people into a payment system which gives the Revenue Commissioners all of their banking details. If they do not do so, they must pay on or before 1 January. If they give their details, they can spread it out over 12 months because the Revenue Commissioners know they can go after them.