Pearse Doherty (Donegal South West, Sinn Fein)
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177. To ask the Minister for Finance the amount raised for the Exchequer in 2012 as a result of increased revenue auditing activity and a targeting of black market activity; and his views on whether this amount can be increased through further auditing targets and other measures to reduce tax evasion [20059/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that Audit activity yielded €359m from 9,066 audit interventions. 154,952 risk management interventions, including in the PAYE sector, yielded €111m, and 373,803 assurance checks brought the total yield to €492m in 2012. These figures include results arising from a very specific focus on cash businesses including: Construction: 1,306 audits yielding €39.3m; Retailers: 848 audits yielding €22.4m; Landlords/Rental properties: 733 audits yielding €22.4m; Bars and Restaurants: 563 audits yielding €42m; Professionals: 466 audits yielding €13.4m; and Wholesalers: 387 audits yielding €18.4m.

These results are included in the Annual Report of the Revenue Commissioners published on Wednesday, April 24th. The report contains detailed statistics on all Revenue activities in 2012, including compliance activities in all its forms.

I am also advised by the Revenue Commissioners that its shadow economy /black market activity includes tackling the evasion of excise duties, such as those on oil, tobacco and alcohol. The Revenue Commissioners put a particular focus in 2012 on the risks associated with fuel laundering, with considerable success. Revenue have informed me that they detected and dismantled 11 oil laundries, and between 2011 and 2012 closed down 89 retail outlets trading in fuel in breach of licensing requirements. There has been large scale compliance with the new licensing provisions and the new monthly return. Revenue is actively pursuing the minority of traders who are trading while unlicensed and those who have not submitted a return. In addition, Revenue is now able to track product movements through the distribution chain and is in the process of identifying traders who pose tax risks for priority compliance / audit / enforcement intervention.

Revenue is also very active in relation to countering tobacco smuggling, and they have advised me that they had 8,105 seizures, amounting to 95.6 million cigarettes. While the latest survey results suggest that the penetration of the cigarette market by illicit products is being contained, Revenue have advised me that combatting this illegal activity will continue to be a high priority in 2013.

Revenue is responsible also for acting against the importation into the country of counterfeit goods, and works closely with right holders in this area. Revenue has advised me that during 2012, there were 5,580 seizures of counterfeit goods with an estimated value of €5,437,334. In the first quarter of 2013, there were 1,540 seizures of IPR infringing goods amounting to 13,685 items with a value of €819,684.

Revenue tackles the problem of the shadow economy through a range of compliance and audit interventions including targeted special projects and this work will continue in 2013. Finally, I am further advised by the Revenue Commissioners that they hold regular meetings with trade and representative bodies through The Hidden Economy Monitoring Group where the risks posed by shadow economy activities are discussed. This engagement will continue in 2013.

It is difficult to quantify the expected yield from all of Revenue’s compliance activities in 2013. Revenue, like all public sector bodies, is subject to Government policy on civil service numbers and public expenditure control. In this context, I am satisfied that the Commissioners are pursuing programmes to maximise voluntary compliance, to redesign processes in order to mitigate risk, and to optimise the impact their compliance interventions by using sophisticated risk analysis.