Dáil debates

Wednesday, 11 January 2012

4:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

The Deputy has finished where he started by talking about political accountability, the absence of which was very evident for a very long period of time. Deputy Martin is aware that the power to transfer information has been available since 2005. He is also aware that the Revenue Commissioners are not subject to diktat from the Government with regard to any particular sector. I am sure he also accepts the principle - as should everybody - that where tax is due and liable to be collected, it should be collected. If the country did not have an Office of the Revenue Commissioners tax collection system, we would be in very poor shape.

I accept that the handling of the communication of this matter could have been better. The Chairman of the Revenue Commissioners, an exceptionally competent person, has been before the Joint Committee on Finance, Public Expenditure and Reform, and has clarified the whole issue. It is perfectly evident that there was no attempt by the pensioners to be involved in tax evasion. It is important to say that were we to have a different system, we would have had 500,000 persons concerned or anxious about what is involved here. It is true that the Revenue Commissioners would have advised the Department of Finance of its capacity to collect €45 million as a result of the information given to it from the Department of Social Protection under the Act and to do that without great difficulty. Pensioners accept that if there is a liability, it should be paid. As the Deputy is aware, there are four categories involved and the letters spelled those out. I am glad that a representative from the Revenue Commissioners has gone before an Oireachtas committee today to spell out exactly what was involved.

Furthermore, in the budgetary announcement made by the Minister for Finance, the reference to the €45 million being collected was in the supporting documentation to the budget and that would be a matter for the Revenue Commissioners to implement as it does normally. As Deputy Martin is well aware, the Revenue Commissioners are not subject to direction or diktat from the Government, but are independent in the performance of their duties and over the years have certainly improved the collection of taxes that are due under the law of the land.

I am glad that as a result of this, we will have improved communication and certainty for pensioners who are involved. Those who may have a liability will know what that liability is. Those who do not have a liability will now be clear about that and for those who may have some small liability , an assessment will be made by the Revenue Commissioners as to whether it is worth while pursuing that liability. I have heard mention of amounts as low as 20 cent of a liability per year, which clearly would not be worth pursuing.

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