Oireachtas Joint and Select Committees
Thursday, 2 July 2015
Public Accounts Committee
2013 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 15: Local Property Tax
Chapter 16: Taxation of Rental Income
2014 Account of the Revenue Commissioners
10:00 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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That is the point. Revenue set out to trace the activities of people in this area of the shadow economy, namely, those who trade in laundered diesel. I am concerned about hauliers who are conducting their legitimate businesses and paying tax to the Revenue. I must confess that my background is in haulage and I still have an interest in it. What annoys many hauliers and those retailers who sell cigarettes and other goods is that as they fight to comply and pay their taxes, which has been a battle during a difficult period for the economy, it would seem that while those involved in illicit activity are being caught - Revenue has a good record in this regard in terms of the figures - there is a great deal more of this type of activity taking place. It is easy to ensure that the owner of the local convenience store on the corner pays his taxes. However, people who own such stores and others would say that the same emphasis is not applied to those involved in illicit trading. The shadow economy is growing and represents a dangerous challenge to those who are operating on the basis of a lower mark-up or percentage. Mr. Cody knows - probably better than me - that most hauliers operate on the basis of a mark-up of between 4% to 6%. I do not know why some of them are still trading because they are not making a profit.
I am not defending them - I am merely acknowledging the fact - but there are some legitimate operators who are turning to the black economy because they feel they are being cheated. A concentrated effort must made to deal with the issues they raised last week in the context of the British-Irish Parliamentary Assembly, even if it is only by means of providing an explanation. Our meeting today provides an opportunity to get the message out in this regard, namely, that Revenue is doing its best. If there is a lack of resources, then that matter should continue to be highlighted. Earlier, Mr. Cody said something that is very true. This is not something that happened in the past year, it has been going on for a long period. I refer to the fact that as soon as Revenue puts a tag or a trace in place, those involved in the illicit trade will spend money to ensure they find ways to circumvent it. As a result, Revenue is involved in a constant battle. Those involved on the side of right must continue to up their game. I reiterate, however, that people involved in the legitimate economy are of the view that they are being short-changed. That is a fact. I have listened to their concerns and I am sure Deputy Perry, who previously served as Minister of State with responsibility in this area, will agree with what I am saying. I do not know whether what is required is for Revenue to provide an explanation in respect of its activities on a regular basis. All I will say is that those involved in legitimate trading are not convinced.