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

Question 106: To ask the Tánaiste and Minister for Finance the amount of outstanding uncollected taxes; the proportion of same 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. [29574/07]

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

I have been informed by the Revenue Commissioners that the tax debt outstanding at 31 March 2007 and as reported in its annual report was €1,107million. This represents 1.8% of gross receipts, a level that is exceptionally low by international standards. The amount under appeal was €315million leaving the remainder, €792million available for collection.

The debt of €792m represents a snapshot of the debt at a particular point in time [in this instance 31 March 2007] and is a constantly changing figure as additional debt arises and activity by Revenue results in debt being collected. This changing element of the debt composition makes it difficulty to accurately predict the likely reduction in the debt figure. However, Revenue estimate that the collectible debt of €792m plus additional debt that arises from new or revised tax charges will be reduced by up to 97% over a five year period. The remaining debt will be under control, under appeal or at enforcement. Revenue is not in a position to estimate the likely collection from debt currently under appeal.

The strategies and methodologies adopted by Revenue 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. In the context of the preparation of a new Statement of Strategy for 2008-2010, Revenue is considering the appropriate strategies and targets in relation to debt management for the period ahead.