Billy Timmins (Wicklow, Fine Gael)
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Question 269: To ask the Minister for Finance if the Revenue Commissioners have sub-contracted out some of the work that comes under their remit; the amount involved; if this work has been completed satisfactorily; and if he will make a statement on the matter. [4893/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that they outsource a broad range of tasks, including cleaning and security, IT systems, data capture, training and debt collection. I understand the Deputy is referring to work undertaken on behalf of the Revenue Commissioners in regard to tax collection and data capture of information from the income tax return. form 11, and corporation tax return, form CT1.

Six firms of solicitors are engaged by the Revenue Commissioners for work in connection with the enforcement of tax debts. They are engaged under contract following a public procurement process and are paid in accordance with the terms of those contracts. The following table sets out the amount of work completed by the solicitors in 2004.

The Revenue Commissioners assure me that outsourcing certain tax debts to solicitors is efficient and works well.

In regard to data capture, I am informed that in early 2004 the Revenue Commissioners contracted out the capture of certain accounts information for income tax and corporation tax purposes. Such data is successfully used by the Revenue Commissioners to drive compliance activities. In late 2004, the data capture project was extended, on a pilot basis, to also capture information from the returns for the purpose of raising tax assessments.

The pilot project in regard to income tax has experienced some technical difficulties and steps are being taken to resolve these. A full review will be carried out by the Revenue Commissioners on completion of the pilot projects to identify problems and propose solutions with a view to continuing the project. The cost of this outsourcing was €650,597 in 2004.