Seán Ryan (Dublin North, Labour)
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Question 61: To ask the Minister for Finance the number of random audits carried out by the Revenue Commissioners in 2005; the way in which this compares with each year from 2002; the number expected to be undertaken during 2006; and if he will make a statement on the matter. [7869/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that 400 cases were selected for random compliance testing as part of their 2005 programme. This includes not just the auditing of returns filed but also the testing of overall compliance with their payment and return filing obligations. To date, random testing has been completed in 327 of those 400 cases.

I am informed that Revenue's approach to random compliance testing changed significantly for their 2005 programme, and that any comparisons with previous years would need to bear this in mind. The traditional random audit programme was not carried out in 2004 due to the change in Revenue's approach following a review of the programme. However, 25 cases selected under the programme for previous years were completed in 2004.

I understand that 274 random audits were completed in 2003 and 720 in 2002. However, for these years the selection was not purely random as Revenue districts narrowed down the initial random selection based on risk criteria.

With regard to 2006, I understand that the random compliance testing programme will commence shortly and that the sample size is again expected to be 400 — the same as for the 2005 programme. The Revenue Commissioners assure me that they are pursuing a programme which is dealing in a very determined way with tax evasion by maximising the impact of their resources through focusing on risk. This is strengthened by their taxpayer compliance testing programme, which ensures that all taxpayers are exposed to the possibility of a compliance check or Revenue audit. This approach is in line with international best practice.