Written answers

Wednesday, 30 January 2008

8:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 151: 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. [2324/08]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that arrears of tax and duty amounted to €1,107 million as at 31st March 2007, which are the latest stable figures available.

Of the debt of €1,107m, €163m was under control. This means that the debt is being managed, generally through an agreed instalment arrangement where additional time to pay is given by Revenue. €402m was under active collection while €227m was at enforcement. This gives a total of €792m under active collection/enforcement or under control. The balance of €315m was under appeal and therefore not available for collection.

Collectible debt represents a snapshot of 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. The Revenue Commissioners estimate that, the collectible debt of €792m plus any additional charges that subsequently arise for the period involved, will be reduced by up to 97% by the end of 2011. The remaining balance will be under control, under appeal or at enforcement.

I am advised by the Revenue Commissioners that the strategies and methodologies adopted to achieve a reduction over a five-year period are the subject of annual review and evaluation that is carried out within the context of the business planning process. In addition Revenue's new Statement of Strategy 2008-2010, which will be finalised very shortly, will set out the broad direction and focus of Revenue with regard to debt management for the next three years and seek to build on the very good progress in debt reduction that has been achieved in recent years. Revenue debt as a percentage of gross collection is now one of the lowest of any tax administration.

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