Liz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 139: To ask the Minister for Finance the number of random audits carried out by the Revenue Commissioners in 2006; the way this compares with each year from 2003; the number expected to be undertaken during 2007; and if he will make a statement on the matter. [10229/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I have been advised by the Revenue Commissioners that 402 cases were selected for random audit as part of their 2006 programme. To date, 167 audits have been concluded. 43 cases yielded €233,721. There were no recoveries from 124 cases (74%). 235 cases are still ongoing.

I am advised that 410 cases were selected for random audit under Revenue's 2005 programme. 60 cases did not proceed to final audit due to the particular circumstances of the taxpayer, e.g. trading had discontinued, the taxpayer was deceased or the case had been very recently audited. 111 cases yielded €1,224,528. There were no recoveries from 231 cases (68%). Eight cases are still ongoing.

I am informed that Revenue's approach to random auditing changed significantly for their 2005 programme. The new approach introduced both better design and delivery of the programme and improved statistical rigour. Accordingly any comparisons with previous years must 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 am advised that 274 random audits were completed in 2003. 122 cases yielded €3.4m and 152 cases (55%) were nil yielding. However, for this year the selection was not purely random as Revenue Districts narrowed down the initial random selection based on risk criteria.

In relation to 2007, I understand that the random audit programme will commence by the end of March. 400 cases have been randomly selected. Internationally a sample in the order of 400 cases is regarded as an appropriate sample for the size of the population being measured.