Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

Section 74 introduces a number of measures in respect of the attachment of debt. The Senator's recommendation would remove from the Bill the provision that allows the Revenue Commissioners to attach emoluments to recover unpaid liabilities of taxpayers. Attachment of an enforcement is an option available to the Revenue Commissioners to recover unpaid tax, unpaid interest or unpaid penalties due by taxpayers who have ignored collection approaches, notifications and 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 level, or nominated assistant principal officer level.

A number of amendment provisions have been made, in light of the experience of the Revenue Commissioners, in order to make it more effective in pursuit of tax defaulters who have ignored all reasonable attempts to collect taxes in default and to improve efficiencies in certain circumstances.

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 changed since, and many persons now carrying on trades or professions also derive emoluments from directorships and from employment. In addition, certain persons carrying out 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 sources of their resources. Where this is not done on a voluntary basis, it is appropriate that the Revenue Commissioners have the use of attachment procedures where necessary to cover these debts. These procedures are only used by the Revenue Commissioners when all normal collection attempts have been ignored by the taxpayer.

If the Senators' recommendations were accepted, it would mean the Revenue could not attach the salaries of well paid individuals with significant entrenched tax debts. It would also mean that individuals who have ceased trading but who are in well paid employment and who, in spite of all reasonable efforts by the Revenue, have not engaged seriously in respect of the payment of tax and have substantial tax liabilities unpaid, can effectively ignore Revenue for very long periods. Given the need to ensure that all tax legally due to the Exchequer is collected in order to maximise tax revenues, I consider it only right that the Revenue Commissioners have the use of attachment procedures in these circumstances. Therefore, I cannot accept the recommendations.

Senators raised a number of points. The 1988 Act applied to assets. The question has raised as to whether there is any appeal. An appeal is available to everybody through the Revenue appeals office. That exists for these circumstances as well. The Bill expands the opportunities for the Revenue Commissioners, but it is only for last resort.