Richard Bruton (Dublin North Central, Fine Gael)
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Question 137: To ask the Minister for Finance the estimated loss to the Revenue Commissioners of tax due as a result of liquidations, receiverships and examinerships in each of the past four quarters in 2009; the way in which the Revenue Commissioners manage collection policy with companies experiencing trading difficulties; if the Comptroller and Auditor General has advised on the matter; and if he will make a statement on the matter. [7023/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that data in relation to the estimated loss to Revenue as a result of liquidations, receiverships and examinerships in each of the past four quarters in 2009 is not available due to the current industrial action in the public service.

The Revenue Commissioners are charged with responsibility for collection and recovery of a wide range of taxes and duties. I know that Revenue has had and continues to have a strong focus on making sure that everyone complies with their tax and duty responsibilities by paying the right amount and on time. 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. I fully support what Revenue are 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 being timely compliant. Revenue responded to this difficult environment by actively encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise to find an agreed way 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

Revenue has been proactive in communicating its policy in public fora and has utilised every appropriate opportunity to publicly make its position clear in relation to this issue. 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. The Comptroller and Auditor General has examined this issue in his 2008 Annual Report, and has noted Revenue's approach. He concluded that this approach appears to be appropriate, but that ongoing vigilance is called for and the Revenue Commissioners advise me that they agree with this observation.