Written answers

Tuesday, 3 November 2009

8:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 370: To ask the Minister for Finance if there has been new policy direction for the activities and conduct of revenue sheriffs or county registrars in view of the tightening of credit lines for small businesses and the cash flow problems caused by the downturn in the economy; and if he will make a statement on the matter. [38835/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Revenue Commissioners are charged with responsibility for the collection and recovery of a wide range of taxes and duties. I know that Revenue has a strong focus on making sure that everyone complies with their tax and duty responsibilities by paying the right amount within the appropriate deadlines. Revenue expects businesses to continue, notwithstanding the more difficult economic circumstances in which they are now operating, to maintain a clear focus and organise their financial affairs to ensure that tax debts are paid as they fall due. Apart from the importance of timely compliance to the Exchequer, unfair competitive advantage achieved through persistent late or non-payment of tax can undermine compliant businesses. I fully support what Revenue is doing in that regard.

I know also that Revenue is very conscious of, and appreciates that, the difficult economic and financial climate in this country poses challenges for business in meeting with their tax obligations within the appropriate deadlines. Revenue responded to the changing environment by encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise so that an agreed way can be identified to work through those difficulties and quickly restore voluntary timely compliance. Revenue has developed an administrative framework to manage such cases, and has published material for businesses experiencing tax payment difficulties on its website www.revenue.ie. I am aware that the feedback from trade representative and tax practitioner bodies to the initiatives Revenue has taken has been positive and is regarded as an effective way of supporting businesses who are disposed to addressing payment difficulties in a positive, realistic and proactive way at this time.

It is only where a business refuses to deal with a tax debt in a realistic way or continues to be non-compliant that a debt is referred by Revenue to the Sheriff for collection and recovery. I should emphasise that Revenue Sheriffs are officers of the courts holding office under Section 12 of the Court Officer Act, 1945. The Revenue Sheriffs' debt collection activities, including seizure procedures, are governed principally by the Enforcement of Court Orders Act, 1926, as amended. Sheriffs are answerable before the Courts for any breach of the civil debt collection code and are not directly accountable to the Revenue Commissioners. Nevertheless, I am advised by Revenue that the Sheriffs will have due regard to the circumstances of the businesses in trying to effect collection

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