Richard Bruton (Dublin North Central, Fine Gael)
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Question 87: To ask the Minister for Finance the outstanding recommendations of the Revenue powers group and their present status (details supplied). [20565/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The revenue powers group was established in March 2003 to review Revenue's main powers and recommend changes. The group reported in late 2003 and its report was published in February 2004. At the time of publication of the report, the then Minister for Finance indicated his intention to allow a period for public debate and reflection on many of the wide-ranging issues raised by the recommendations.

The group's main recommendations were as follows: some new powers for Revenue; automatic reporting of interest and payments by Departments; improvements in Revenue's off-shore information powers; enhanced powers of criminal investigation, such as access to telephone records, and the right of Revenue officials to question persons in Garda custody; reform of the statutory interest and penalties regime; reduction in interest rate from 11.75% to 10% and revision of publication limit from €12,700 to €50,000; improving the safeguards and preconditions for the use of certain existing powers, as well as extended appeal provisions; establishing current practice with regard to voluntary disclosure in legislation; and controlled information disclosure from Revenue to other official agencies such as ODCE and no disclosure where voluntary disclosure is made.

In this year's Finance Act, I initiated the first measures in a process of reforms in the area of Revenue powers including a number of the recommendations of the revenue powers group. In brief, these included the publication limit for settlements with tax defaulters being increased from €12,700 to €30,000, the interest rate on underpaid tax being reduced to a daily simple interest rate equivalent to 10% per annum for non-fiduciary taxes and the repeal of the 2% per month interest charge for fraud and neglect, and the 200% tax-geared penalty for fraud from a current date. I also addressed a number of other issues within the general area of Revenue powers which did not arise from the recommendations of the Revenue powers group, such as the introduction of a statutory offence for aiding and abetting tax evasion.

Other recommendations of the group will also be administratively implemented or have already been implemented by the Revenue Commissioners. These include the following. The Revenue powers group had concerns regarding the modalities of exchange of information between Revenue and other agencies, in particular the Office of the Director of Corporate Enforcement. Revenue and the ODCE have recently concluded negotiations and signed a memorandum of understanding which will govern this information exchange and this largely meets the group's concerns. The targeting of audits will be continually improved through greater focus on risk.

Regional powers officers have been appointed within Revenue to manage the use of powers in the new regions. Compliance costs will be reduced wherever possible and the cost of compliance will continue to be weighed up when considering the introduction of new powers. Revenue will aim to examine records at the taxpayer's premises where the removal of records would prevent the business carrying on in an orderly manner. Revenue will give more prominence to the external reviewers and in future will have them appointed using the Civil Service and Local Appointments Commission.

I intend to return to some of the remaining recommendations, which require further consultation and careful consideration, for future implementation.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 88: To ask the Minister for Finance the main types of transaction attracting capital gains tax and the revenue generated in each case. [20566/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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CGT is charged on the lifetime disposals of most assets whether the disposal is by sale, gift or exchange. The total CGT yield in 2004 was around €1.5 billion. I am informed by the Revenue Commissioners that the precise information requested by the Deputy is not available. The information available is a proportional breakdown by reference to asset types of the aggregate consideration underlying capital gains tax computations for tax year 2003, that is, the total selling price prior to allowing any offsets or deductions. The figures, which are based on CGT returns filed through the ROS system in late 2004, are as follows.