Luke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Finance if he will indicate where accountability lies for issues regarding the Revenue Commissioners and the non-compliance by private companies in relation to VAT in view of circumstances (details supplied); and if he will make a statement on the matter. [14605/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that tax administration in Ireland operates under a code of Self-Assessment where tax entities are obliged by law to declare and pay the correct tax on a timely basis. Failure to either make a correct return/declaration or pay the correct amount in full will result in action to recover any additional tax and, where appropriate, the application of interest and penalties. Prosecution and/or publication in the quarterly list of tax defaulters may also arise. In addition, the Revenue Commissioners operate an extensive audit and compliance programme. Cases are generally selected for compliance intervention by reference to risk. Risk is determined by a wide number of factors including compliance history, business sector, third party information etc. It follows that the higher the risk a business or individual poses to Revenue, the greater the likelihood of a compliance intervention. Compliance interventions can range from a letter or a phone call to an interview or indeed a full audit.

I would again point out that the Revenue Commissioners are precluded by Section 851A of the Taxes Consolidation Act 1997 from providing taxpayer specific information to third parties including elected representatives. However, the Deputy can be assured that his question and comments have been noted.

As regards the accountability of the Revenue Commissioners, the position is that they are accountable to the Minister for Finance with regard to their overall performance. However, it is a long standing tradition of this House that Revenue are independent in their performance of their functions under a relevant enactment, including the Tax Acts, and this convention was given a legal basis, as recommended by the Moriarty Tribunal, in the Ministers and Secretaries (Amendment) Act 2011. In common with all State bodies, the Revenue Commissioners are subject to audit and examination by the Comptroller and Auditor General, and examination by the Public Accounts Committee. They also come within the ambit of the Ombudsman.