Written answers
Tuesday, 10 July 2012
Department of Finance
Departmental Reports
10:00 pm
Seán Kyne (Galway West, Fine Gael)
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Question 134: To ask the Minister for Finance if he will report on the progress made in implementing those recommendations categorised as immediate, short and medium term of the Small Advisory Group's Report entitled The Voice of Small Business for which he has been designated as having lead responsibility. [33644/12]
Michael Noonan (Limerick City, Fine Gael)
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The following table outlines the actions and current status of recommendations contained in "The Voice of Small Business" for which my Department has lead responsibility:
| Action | Current Status |
| 6(a) Develop & implement a cross-departmental awareness campaign on the impact of hidden economy activity. | There is no doubt that shadow/hidden economy activity creates distortions in the economy and competitive disadvantages for compliant businesses. For these reasons, Revenue focuses on deterring shadow/hidden economy activity and non-compliance through its audit and investigation programmes based on risk analysis, use of Revenue powers and their intelligence and information systems. Last year Revenue carried out 11,066 audits resulting in a yield of €440.46 million. The Revenue approach to the shadow economy is underpinned by close consultation and cooperation with the Department of Social Protection. The primary objective of these activities is to uncover either non-declaration or under declaration of income and/or fraudulent DSP claims. In addition, there is continuing strengthening of legislation to provide for a robust framework within which the Revenue Commissioners may tackle tax and duty evasion. Revenue has a prioritised focus on those sectors that traditionally have been susceptible to shadow activity such as cash businesses. In order to inform the approaches they are taking and help determine where resources may best be deployed, Revenue have engaged on a series of meetings with trade and representative bodies. Increasingly they are finding that bodies and individuals are prepared to share insights and specific information with Revenue with regard to shadow economy activity in times of recession. Revenue is deepening their engagement with the representative bodies and has set up regional shadow economy liaison groups. Any additional information campaign should be considered in the context of measures already in place. |
| 8(a) Mandate the introduction of electronic payments by all Government & State agencies by end 2012. | A very similar goal is included as part of the Croke Park agreement and this is being worked towards in that context. Under the SEPA regulation the Irish government is committed to migrating the civil service to SEPA compliant payment systems by end Q1-2013. This will facilitate further the introduction of electronic payments. |
| 8(b) Remove Professional Services Withholding Tax for service providers. | After careful consideration, and in light of the effect that this measure would have on the Exchequer returns, it is not proposed to abolish PSWT for service providers at this time. |
| 8(b) Consider a reduction in the preliminary tax requirement from 100 percent to 75 percent for small firms until 2013. | After careful consideration, and in light of the effect that this measure would have on the Exchequer returns, it is not proposed to introduce this measure at this time. |
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