Tommy Broughan (Dublin North East, Labour)
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Question 118: To ask the Minister for Finance with regard to the almost €2.5 billion remaining outstanding in uncollected taxes, his views on the proportion of this the Revenue Commissioners expect to recover; if new measures are planned to assist in the collection of outstanding taxes; and if he will make a statement on the matter. [26622/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the total tax debt outstanding at 31 March 2005, as reported in Revenue's annual report and in the recent report of the Comptroller and Auditor General, was €1.2 billion, not €2.5 billion as quoted by the Deputy.

As with any tax system, there will always be people who pay late, people who try to avoid paying and people who cannot pay. In this context it is important to note that the debt of €1,217 million at 31 March 2005 is €146 million or 10.7% less than at 31 March 2004. The figure represents 2.5% of annual gross collection and is one of the lowest percentages of any tax administration internationally. This compares to a total debt of 4% of gross receipts in 1999, 15% in 1994 and 30% in 1989. Of this figure, €278 million of the total debt is under appeal with a further €349 million under control or at enforcement. The remainder, €590 million, is under active collection.

It is the goal of Revenue, as stated in its Statement of Strategy 2005-2007, that all debt on record should be less than five years old, or the subject of active enforcement or court proceedings. In this context, I am advised by Revenue that it would expect the current collectible tax debt and any additional debt that will arise for periods up to 31 December 2004, through assessments made by Revenue or submission of overdue returns by taxpayers, would ultimately be reduced over the next five years by 96%. That reduction will be achieved primarily by collection of the debt due.

Revenue has emphasised the changing element of the debt make-up and the difficulty that this creates in making an estimate of the likely reduction in the debt figure over a five-year period. Revenue's strategies and methodologies adopted to achieve a reduction over a five-year period will be subject to annual review and evaluation that is carried out within the context of the business planning process.