Martin Mansergh (Tipperary South, Fianna Fail)

I will deal with amendment No. 96 regarding the attachment of debt. Attachment is an enforcement option available to the Revenue Commissioners to recover unpaid tax, unpaid interest or unpaid penalty due by taxpayers who have ignored the normal collection approaches and notification procedures taken by Revenue. Attachment is used judiciously by Revenue in accordance with strict guidelines which require that any decision to use attachment must be approved at principal officer or nominated assistant principal officer level. A number of amendments to the attachment provisions are being made in the light of the experience of the Revenue Commissioners to make them more effective in the pursuit of tax defaulters who have ignored all reasonable attempts by Revenue to collect taxes in default and to improve efficiencies in certain situations.

When attachment was introduced in 1988, attachment of emoluments was not regarded as necessary by reference to the circumstances that prevailed at the time. However, circumstances have since changed and many persons now carrying on trades and professions also derive emoluments from directorships and employments. In addition, certain persons carrying on trades and professions have ceased those activities leaving undisputed tax liabilities unpaid. Where these people have directorships or employments, it is appropriate that they should meet their tax debts of previous and current years whatever the source of their resources. Where this is not done on a voluntary basis, it is appropriate that the Revenue Commissioners have the use of the attachment procedure where necessary to recover these debts. I emphasise that attachment is used by the Revenue Commissioners only where all normal collection attempts have been ignored by the taxpayer.

If the amendment was accepted, it would seriously restrict the Revenue Commissioners' ability to recover outstanding debts in circumstances where the individual had ceased trading leaving substantial unpaid tax liabilities and was now in employment where due to the level of net income it was deemed appropriate to use the attachment procedure. In these circumstances, I cannot accept the amendment.

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