Jim Daly (Cork South West, Fine Gael)
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221. To ask the Minister for Finance the amount outstanding in arrears to the Revenue Commissioner across all taxation brackets at 31 March 2012 and 2013; and if he will make a statement on the matter. [39776/13]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, the Deputy will be aware that the debt collection environment continues to be very challenging for Revenue given the ongoing difficult financial environment. In that regard I am assured that Revenue is very conscious of the challenges that exist for some businesses in meeting their tax obligations in a timely manner. Its debt collection caseworkers will always seek to work proactively with taxpayers and viable businesses that engage positively to agree mutually satisfactory arrangements to overcome temporary cashflow difficulties in preference to deploying enforcement options. I am informed that the total outstanding tax debt at 31 March 2013 amounted to €2,006m, an increase of €20m on the total debt outstanding at 31 March 2012 as outlined in the following table.

However the ‘debt available for collection’ portion of the total debt, which excludes both debt under appeal to the Appeal Commissioners and insolvent debt was €1,180m at 31 March 2013. This figure, which is a more accurate reflection of the debt available to Revenue to manage through its debt management programmes was €137m or 10% less than the same period in 2012.

Of the €1,180m ‘debt available for collection’ figure at 31 March 2013, €476m was under active enforcement and a further €124m was the subject of phased payment arrangements.

I am assured by Revenue that, notwithstanding the continuing very difficult environment, achieving further reductions in collectible debt is a key strategic objective. I am satisfied that the continuing trend in decreasing levels of ‘debt available for collection’ over the last couple of years is encouraging and clearly demonstrates the success of Revenue’s current approach to debt management.

Analysis of Taxes Outstanding Debt at 31 March 2012 and 2013