Micheál Martin (Cork South Central, Fianna Fail)

The "black economy" is generally described as the hidden sector of the economy where private cash transactions go unreported and hence untaxed. As such, the policing of this area is a matter for the Revenue Commissioners in the first instance. In the context of the new social partnership agreement, which is subject to ratification over the coming weeks, it is proposed that the hidden economy working group will be relaunched immediately upon its ratification and will meet on a monthly basis or as appropriate thereafter. The Revenue Commissioners chair this group which consists of members from ICTU, CIF, SFA, ISME and the Departments of Social and Family Affairs and Enterprise, Trade and Employment. It is also anticipated that the new office of the director for employment rights compliance, when established, will join this working group.

I am advised by the Revenue Commissioners that they are continuing with their programmes to tackle the problem of the hidden economy through their routine audit and compliance activities, with a special emphasis on the construction sector in 2006. Furthermore, special compliance districts throughout the country actively pursue intelligence and inquiries surrounding all aspects of the hidden economy.

With regard to the activity of bodies operating in the context of my Department's area of policy responsibility, the Director of Corporate Enforcement regulates the compliance of companies and their officers with company law rather than taxation. However, sections 17 and 18 of the Company Law Enforcement Act 2001 provide for the sharing of information between the Revenue Commissioners and the Director of Corporate Enforcement and a memorandum of understanding has been agreed between the two bodies to give concrete effect to this. If, in the course of investigation of a particular company, a significant taxation issue comes to the attention of the director and his staff they apprise the Revenue Commissioners accordingly. Equally, there is provision for information flow from the Revenue Commissioners to the Office of the Director of Corporate Enforcement.

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