David Stanton (Cork East, Fine Gael)
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Question 79: To ask the Minister for Finance if the Revenue Commissioners has a policy of working with businesses that may be having difficulties in making required payments, in order to maintain these companies in existence; the number of companies that have been forced to cease trading as a result of Revenue demands in 2010; and if he will make a statement on the matter. [14743/11]

Michael Noonan (Limerick City, Fine Gael)
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I know that Revenue has a strong focus on maintaining and indeed improving the rates of timely compliance by businesses with the tax return and payment obligations. Notwithstanding the more difficult economic circumstances in which businesses are operating at present, it is very important that businesses organise their financial affairs in such a fashion as to ensure that tax debts are paid as they fall due. This is essential not just from an Exchequer viewpoint but also because late or non-payment of tax debts puts those businesses who are timely compliant at a significant competitive disadvantage. I fully support what Revenue is doing in that regard to ensure a focus by businesses on paying the right amount of tax and on time.

I know that Revenue appreciates the challenge for business in being timely compliant especially in the difficult economic and financial climate that prevails at present. Revenue has consistently encouraged businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise towards an agreed way through those difficulties so as to quickly restore voluntary timely compliance. In that regard, Revenue has developed an administrative framework to manage such issues, and has published material for businesses experiencing tax payment difficulties on its website at www.revenue.ie. I am aware that tax practitioners and representative bodies have recognised Revenue's practical support and assistance to viable businesses.

Where businesses or individuals experience difficulties in meeting their tax payment obligations on time, in the absence of meaningful and timely engagement with Revenue and agreement on how that challenge will be managed, Revenue will take the necessary action, including enforcement, to secure compliance. Those businesses and individuals who comply on a voluntary and timely basis must be confident that their efforts are recognised through the initiation of the necessary collection and recovery action by Revenue against those who do not meet their obligations.

Revenue is not in a position to say exactly how many companies have been forced to cease trading as a result of their demands for payment of tax debts in 2010. In many instances companies and businesses in difficulty with Revenue will have difficulties with other creditors and it is not readily possible in every instance to isolate the efforts of any particular creditor as the underlying reason for the decision to cease trading. However, I am advised by Revenue that in 2010, 63 companies were wound up by the High Court following the presentation of its petition to the Court for the appointment of a liquidator.