Pat Rabbitte (Dublin South West, Labour)
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Question 104: To ask the Minister for Finance the amount of outstanding uncollected taxes; the proportion of same the Revenue Commissioners expect to recover; if any new measures are planned to assist in the collection of outstanding taxes; and if he will make a statement on the matter. [10228/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that, as the Deputy will appreciate, the amount of arrears of tax and duty is constantly fluctuating. Accordingly for accounting and auditing purposes, and to enable comparisons over time, the debt is calculated and analysed as at 31 March each year. At 31 March 2006 the arrears of tax and duty amounted to €1,085m. The debt for the equivalent time as at 31st March 2005 amounted to €1,217m, representing a reduction of €132m or 11% in the year. I am advised that the tax debt figure as at 31 March 2007 will be analysed and published in due course.

Of the debt of €1,085m as at 31st March 2006, €184m was being actively managed, generally through an agreed instalment arrangement where the taxpayer was given additional time to pay; €435m was under active collection, while €213m was the subject of enforcement action. In summary a total of €832m was under active collection/enforcement or under control. The balance of €253m was under appeal and not therefore available for collection.

As the Deputy will be aware, the collectible debt is a constantly changing figure. Additional debt can arise and can also reduce when taxpayers make returns, activity by Revenue results in debt being collected; new debt can arise when Revenue issue assessments, payments by taxpayers result in debt being reduced — and so on. Revenue estimate that the collectible debt of €832m for 2006 plus any additional debts that subsequently arise for the same period, will be reduced by up to 97% over a five-year period. The remaining balance will be under control, under appeal or at enforcement.

Revenue have stated in their 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. Revenue have emphasised that the strategies and methodologies adopted to achieve a reduction over a five year period are subject to annual review and evaluation that is carried out within the context of the business planning process. Revenue's Debt management programme is also subject to annual audit by the Comptroller and Auditor General and is reported on in his report.

I would point out that the Revenue debt as a percentage of gross collection is now one of the lowest of any tax administration, standing at less than 2% of gross collection. I am satisfied that the measures being taken by Revenue are highly effective in ensuring the collection of tax debts. Beyond the on-going review and evaluation of collection strategies and methodologies by Revenue I have no plans for new measures in this area.