Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 22: To ask the Minister for Finance if he is satisfied that sufficient steps are being taken to combat tax evasion in view of the continuing high level of settlements reported by the Revenue Commissioners each quarter; and if he will make a statement on the matter. [2471/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The Revenue Commissioners are pursuing a programme which is dealing in a very determined way with tax evasion. The commissioners are taking an approach which, depending on the nature of the case, involves either a monetary settlement and possible publication or criminal investigation and prosecution. This combined policy has yielded significant results.

In recent years, for example, Revenue special investigations have yielded a total of €1.6 billion. Revenue's normal audit programme each year also continues to recover significant tax, together with interest and penalties. For 2004, in excess of €400 million was collected in this audit programme in approximately 16,000 cases.

The high level of success in securing settlements is a reflection of the targeted approach used by Revenue which is to focus its compliance resources on the areas where they are needed most. An associated strategy is to minimise the number of contacts with compliant tax and duty payers. Accordingly, Revenue's audit selection is now targeted at areas of highest risk and the level of settlements must be seen in that context.

I am informed by Revenue that it is prosecuting an increasing number of cases of serious tax evasion each year despite the evidential difficulties involved and the resource intensive nature of this work. This work is dealt with in its investigations and prosecutions division which has a clear mandate to focus on this objective. Recent figures indicate that this new approach is now proving successful. Currently, 46 cases are under investigation for prosecution, seven cases are with the DPP, directions to prosecute have been received from the DPP in another five cases and these are proceeding to court. Bench warrants have been issued in three cases and four cases are before the courts. It should be noted that Revenue also takes prosecutions in the District Courts each year in respect of in excess of 1,000 cases related to non-filing of tax returns.