Michael McGrath (Cork South Central, Fianna Fail)
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68. To ask the Minister for Finance if he is satisfied that the additional numbers to be hired in the Tax Appeals Commission will be sufficient to meet the growing number of appeals it has to deal with; when he expects the number of outstanding appeals to begin reducing; and if he will make a statement on the matter. [13645/18]

Michael McGrath (Cork South Central, Fianna Fail)
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The question is to establish what progress is being made in dealing with the substantial backlog of cases that has built up before the Tax Appeals Commission.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Tax Appeals Commission, TAC, was established in March 2016 as part of the reform of the Finance (Tax Appeals) Act 2015. The vision for the new commission was that it would provide enhanced arrangements for an independent, efficient, well-defined, clear and transparent system for appeals relating to decisions of the Revenue Commissioners.

The commission has a recruitment campaign under way in conjunction with the Public Appointments Service to engage experienced, tax-qualified staff.  I understand it is expected that  appointments of case managers will be made shortly at assistant principal level. However, I am also advised by the commission that the number of appeals it receives now is of the order of 200 per month, which compares with an average of 75 appeals per month in 2016, the year of the commission's establishment. It has indicated that the view of agents and their representative bodies is that the number of appeals is likely to grow further during 2018.  I am advised that with more than 3,600 appeals in its system, the commission is unable to provide the timely and efficient service that it wants to provide. 

We have provided additional resources to the commission. Staffing levels have more than doubled over the first two years of operation.  Where additional resources have been sought to date, no obstacle has been placed in the way of the commission in moving to secure the requested resources.  Indeed, its budget has almost quadrupled between 2014 and 2018.  The commission's Accounting Officer submitted a request to my Department last month for additional staff and resources to meet the increased caseload. This would involve an effective doubling of the commission’s budget in 2018 from €1.626 million to an estimated €3.226 million and it would require extra resources for ICT and new office space. I am considering this submission carefully at the moment and I will make a decision on it very soon.

Michael McGrath (Cork South Central, Fianna Fail)
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Something dramatic has to be done to deal with this issue. Some of the facts the Minister mentioned in his reply highlight my concerns that this problem is actually growing. There is now about €1.6 billion of disputed tax caught up in the tax appeal system. There are more than 3,600 cases and the number is growing month on month because if the commission is receiving about 200 appeals per month, it is not concluding a fraction of that number of cases every month. The problem is getting worse. Having an efficient tax appeals commission is a vital part of the administration of taxation in our country as I am sure the Minister will agree. I do not know if extra resources and larger budgets are the answer, but an answer is needed. This problem is getting worse and it has to be addressed urgently.

Paschal Donohoe (Dublin Central, Fine Gael)
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The number of appeals coming to the commission is now far greater than it was when it was set up. I cannot think of any other organisation that has seen its resources quadruple in four years and about which I will say in the House that I am seriously considering a request for more resources, which I am. It is in everybody's interests to ensure that appeals submitted to the commission are treated quickly and fairly.

Declan Breathnach (Louth, Fianna Fail)
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That concludes questions to the Minister of Finance. Ten questions were dealt with in the time allocated. We would have completed 13 if Deputies had stuck to their allotted time. I apologise to Deputies Bernard Durkan, Pearse Doherty and Michael McGrath, whose three questions could have been addressed if Deputies had stuck to their time limits.