Charlie McCreevy (Kildare North, Fianna Fail)

This recommendation proposes to insert a new section into the Bill. The purpose of the new section is to require the Revenue Commissioners to make an annual report to the Houses of the Oireachtas giving in respect of each tax relief — apart from tax reliefs deducted by persons calculating their incomes for tax purposes — details of the numbers availing of the relief, the range of the value of the benefit to those availing of the relief, the total cost of the relief to the Exchequer, a geographical breakdown by tax district and a statement of the social and economic benefits of the relief.

The Revenue Commissioners already publish an annual statistical report which includes some information about the cost of tax reliefs. Copies of this report are sent to the Oireachtas Library. Table IT6 of the annual statistical report gives the cost of tax allowances and reliefs. This table does not currently give any indication of the numbers availing of the relief, geographical breakdown or the range of the value of the benefit.

I am informed that the Revenue Commissioners, to the extent that information is available in respect of particular reliefs, will examine the possibility of including such details in future statistical reports. In the matter of the range of the value of the benefit of each relief, while such a level of detail may be difficult to achieve in many instances, the Revenue Commissioners will investigate the possibilities. In this regard, the measures I am taking in section 86 of the Bill to require taxpayers to include additional information on tax returns in respect of certain specified reliefs should enhance the range and detail of the information available to the commissioners. This in turn will allow the Revenue Commissioners to consider ways in which it can increase the amount of detail on the take-up and cost of tax reliefs to be reported in its statistical report.

I do not believe it would be a good use of resources to create a statutory compulsion to have a case by case breakdown by tax district of the numbers availing of reliefs and exemptions. The cost and the resources expended in preparing this information for every relief and exemption would be disproportionate to the value of the information obtained from such an exercise. We need to consider the appropriateness of the information required from taxpayers and strike a balance between seeking improved data to assist in the costing and evaluation of tax relief schemes and the compliance burden imposed on taxpayers.

Finally, as regards the provision of a statement by the Revenue Commissioners on the social and economic benefit of each tax relief covered by the report, I do not think the commissioners are equipped or qualified to make any such judgment. The role of the Revenue Commissioners is to collect the taxes and duties imposed by the Oireachtas fairly and impartially and to administer the tax code by providing the best possible service to the compliant taxpayer and pursuing all forms of tax evasion. We will shortly be able to see more relevant statistics on this matter as a result of the changes I introduced in this Bill and further work carried out by the Revenue Commissioners. It is the job of Government and the Minister to decide on the appropriateness or otherwise of a particular relief or incentive and make decisions on that basis. That is the democratic process. Thus, I cannot accept the recommendation proposed by the Senator.