Paul Kehoe (Wexford, Fine Gael)
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Question 243: To ask the Minister for Finance if he will make a statement on a matter (details supplied). [1040/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Revenue Commissioners have had a particular focus on the construction sector in recent years and this sector continues to feature prominently in Revenues compliance programmes. A national construction industry project was conducted between 2006 and 2008. For the duration of this project, Revenue assigned 25% of its audit and compliance resources to monitoring this industry. All of Revenues compliance interventions are risk driven, and use all available sources of information in the selection of cases for audit. In this context, planning information is frequently used as a source of intelligence for tax audits in the construction sector. Typically, the planning records can help with cross-regional construction tax investigation or with a single audit of a particular taxpayer.

For example, one Revenue region carried out 772 site visits to 'one-off' building projects in the period 2006 to 2008. Planning data was used to source some of these cases. In 2008 another Revenue region looked at all planning permissions granted in their area in 2006. Several lines of enquiry are being followed up and the project will be reviewed later this year to see if it was cost-effective. Commencement notices are also checked to identify the sites where work is taking place.

Revenue is satisfied that its approach to compliance is effective in identifying abuses and evasion in this sector. Over the period 2006 to 2008 (incl), over 10,500 audits were carried out in the sector with a direct additional yield to the Exchequer of €356m in tax interest and penalties. A further €29m was collected as arrears in these cases.