Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Finance the loss of revenue to the Exchequer caused by the black economy operators in the motor vehicle tyre industry; and if he will make a statement on the matter. [51990/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they are fully aware of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. It is the role of Revenue to ensure that all businesses, regardless of the type of activity they are engaged in, are registered for the appropriate taxes and duties, and that they fulfil their obligations with regard to the filing of returns and the payment of taxes. Revenue’s tax 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. I am advised that Revenue tackles the problem of tax and duty evasion through their range of compliance and audit interventions including through targeted special projects. Case interventions are undertaken based on Revenue’s assessment of compliance risks, the level of those risks and other relevant information available.

In addition, 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. This work is continuing. There is a strong focus on cash businesses, given its potential high-risk nature, and I am informed that in the first eight months of 2012 audits specifically targeted at these businesses yielded over €12m.

I am further advised by the Commissioners that, specifically regarding the retail and wholesale motor vehicle parts and accessories sector, 25 Audits have been carried out so far in 2012, yielding €407,063. 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 within their records, the motor vehicle parts and accessories sector includes the tyre distributor industry.