Brian Cowen (Laois-Offaly, Fianna Fail)

I have been advised by the Revenue Commissioners that 411 cases were selected for random compliance testing as part of the 2005 programme. A detailed evaluation of the results will be finalised once the approximately 60 remaining audits are completed. I am informed that Revenue's approach to random compliance testing changed significantly in the 2005 programme and this should be borne in mind when making comparisons with previous years. The traditional random audit programme was not carried out in 2004 due to the change in Revenue's approach following a review of the programme. However, 25 cases selected under the programme for previous years were completed in 2004.

I understand that 274 random audits were completed in 2003 and 720 in 2002. However, the selection for these years was not purely random because revenue districts narrowed down the initial random selection based on risk criteria. I understand the sample size in the 2006 random compliance testing programme will again be in the region of 400, the same as for the 2005 programme.

The Revenue Commissioners assure me they are dealing in a determined way with tax evasion by maximising the impact of their resource deployment through focusing on risk. This is strengthened by the random compliance testing programme, which ensures that all taxpayers are exposed to the possibility of a compliance check or audit. This approach is in line with best international practice.

See this speech in context