Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 176: To ask the Minister for Finance if he will report on the Revenue Commissioners investigation into security firms supplying door security; the estimated cost to the State of tax fraud carried out by such companies; the number of audits conducted on such companies from the year 2000 to date in 2006; the number of criminal investigations that are underway as a result; and if he will make a statement on the matter. [33092/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that their audit and compliance programmes target particular sectors from time to time and that one of those sectoral programmes includes the investigation of security firms supplying door security.

I am advised that it is not possible to give a figure for the estimated cost of tax fraud in this sector. Neither are full Revenue statistics available in relation to the number of audits conducted on such companies since 2000. However, I understand that Revenue's Dublin Region conducted audits of 45 such firms over the past eighteen months — since Dublin-based security firms were put into one single District for compliance management purposes.

I understand also that the Director of Public Prosecutions has recently given directions to prosecute in one Revenue criminal investigation of a security firm employing door security and there are two others currently under investigation by Revenue's Investigation & Prosecutions Division.

I can assure the Deputy that Revenue recognises the particular compliance risks associated with the security industry and with firms supplying door security for security purposes. In this regard, meetings are held regularly between Revenue officials and the Private Security Authority. The Deputy may also be aware that compliance with tax obligations is now one of the requirements for the issue of the statutory licence to operate under the Private Security Services Act 2004.