Olivia Mitchell (Dublin South, Fine Gael)
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Question 138: To ask the Minister for Finance his plans to change tax law and company law to prevent the kind of abuses referred to by the Pensions Ombudsman whereby companies close down, walk away from their debts and set up again immediately with the same pensions, staff and contracts; and if he will make a statement on the matter. [27013/11]

Michael Noonan (Limerick City, Fine Gael)
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A risk to tax collection arises where businesses are linked due to the involvement of the principals in a business to a failed business where the protection of limited liability might have been deliberately used to evade the payment of taxes, especially fiduciary taxes, in that failed business (Phoenix Syndrome). To address this risk, Revenue has procedures in place to identify entities with directors common to such failed businesses and to then closely monitor the tax compliance of the successor entity. A dedicated unit is responsible for managing the debt and compliance of phoenix cases. The full range of enforcement measures are very speedily deployed when compliance problems arise so as to minimize the potential for the accumulation of tax debts.

Any change to company law would be a matter for my colleague, the Minister for Jobs, Enterprise and Innovation.