Mr. Gerry Howard:

I thank the committee for giving us the opportunity to attend the meeting. We look forward to assisting the committee in its work. It might assist its deliberations if I outline at the outset the role of the Office of the Revenue Commissioners as it relates to the process of preparing the budget and the Finance Bill.

In addition to our role in the administration of the tax code, Revenue provides support for the Minister for Finance and his Department in the development and analysis of proposals for inclusion in the budget and the Finance Bill. Its role in supporting this process is informed by our experience of the administration of taxation. This experience enables us to advise on the practicality of proposed measures, including avoidance and evasion risks and how they might be mitigated and administration and compliance costs for Revenue and taxpayers. This approach applies equally whether proposed changes are in the nature of revenue raising measures or tax reliefs.

Within Revenue, there are a number of central divisions tasked with supporting the legislative process. I am responsible for business taxes, while my colleagues, Mr. Gerard Moran and Mr. Brian Boyle, are responsible for indirect taxes and personal taxes, respectively. Each of these divisions works closely with the tax policy division of the Department of Finance throughout the year. From time to time, Revenue also brings specific proposals to the Department where we see a need for legislative change to improve the workings of the tax code.

In terms of preparation for the budget and the Finance Bill, we assist our colleagues in the Department by providing estimates of the likely cost or revenue raising potential of specific proposals.

We also assist in the preparation of papers for the tax strategy group in relation to its deliberations, draft provisions of the Finance Bill with the support of colleagues in the Office of the Parliamentary Counsel and provide technical support to the Minister during the passage of the Finance Bill through the Houses of the Oireachtas. In summary, Revenue's role in the budget and Finance Bill process is one of practical and technical support in respect of the policy responsibilities of the Minister and his Department. In that role, we are happy to assist the committee in any way we can.