Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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To ask the Minister for Finance his views on concerns raised in correspondence (details supplied); if he will consider the plights of persons operating in the tyre industry here; and if he will make a statement on the matter. [45254/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they are very mindful of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. As is noted in the correspondence supplied by the Deputy, there is already a strong focus on cash businesses, given their potential high-risk nature. Revenue uses a wide range of methodologies to identify those who under-declare their income and/or are operating in the shadow/hidden economy, and deploys the full range of compliance interventions to tackle those risks. Activities undertaken can include covert surveillance, cold calls to businesses and venues as well as pre-arranged aspect queries on specific items. I am further advised by the Commissioners that regarding the retail and wholesale motor vehicle parts and accessories sector, 17 Audits have been carried out so far in 2012, yielding €331,165. In 2011, 37 audits were carried out in this sector, yielding €483,070. These statistics are compiled from Revenue’s records and I am informed that for the purpose of their records, the motor vehicle parts and accessories sector includes the tyre distributor industry.

Revenue holds meetings with trade and representative bodies nationally and locally through the Hidden Economy Monitoring Group where the risks posed by shadow/hidden economy activities are discussed. Furthermore, Revenue encourages anyone who has specific information regarding any business that is engaged in tax evasion, to submit the details to their local Revenue office.

The Commissioners also advise that their tax and duty compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow/hidden economy.

Lastly, regarding VAT registration, the Deputy should be aware that a trader supplying goods is not required to register for VAT unless their annual turnover exceeds €75,000.