Mr. Niall Cody:

Again, an issue arises with regard to the use of the word fraud. There were practices in the poultry sector which, a little like international tax, exploited the interaction of the flat-rate addition and deductibility for registered farmers. Following an exercise by the Revenue Commissioners, the then Minister for Finance, Deputy Noonan, introduced a facility in the Finance Act before last to bring an order to restrict the opportunity for a sector to engage in flat-rate activity. We have engaged extensively with the sector and the most egregious practices have ceased. We are considering whether we need to submit a further report to the Minister and whether an order needs to be issued. I know the Minister discussed on Report Stage of the most recent Finance Bill whether the Revenue Commissioners are unhappy with the current position and whether they believe the problem persists. My colleagues in indirect taxes are examining this issue. We are also assessing whether the practice could be used in other sectors.