Michael McGrath (Cork South Central, Fianna Fail)
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78. To ask the Minister for Finance if he will provide in tabular form the number of revenue audits carried out each year from 2008 to 2013; the revenue raised from such audits; and if he will make a statement on the matter. [41643/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that their overall approach to tackling compliance is to make the appropriate intervention following careful appraisal of the risk factors in each case. Not all interventions conducted are in the form of an audit. The appropriate compliance intervention is the one considered to be the most effective in targeting the specific risk or risks identified, and to influence the compliance behaviour of the taxpayer. By carefully selecting cases for intervention, and choosing the type of intervention, Revenue maximises the use of resources, and minimises the compliance burden on compliant taxpayers. Accordingly, the focus may vary from a comprehensive examination of all the taxes and duties for which a taxpayer may be liable, to a detailed check of a single tax-head, or a concentration on a single issue of concern.

This targeted approach is greatly supported and enhanced with appropriate technology, including the Risk Evaluation Analysis and Profiling system – REAP, integrating information obtained from multiple sources, and Integrated Case Management systems that facilitate case selection, provide invaluable information for evaluating Revenue’s programmes, track the progress of cases and record the risks identified and examined. REAP, developed by Revenue, categorises taxpayers in accordance with defined risk criteria and includes details of the compliance behaviour of the taxpayer in relation to filing and paying.

I am advised that these systems have enabled the Commissioners to gradually evolve and refine the recording and classification of compliance interventions and the approach currently in use is shown in Table 2 below in respect of 2012. As a result, the data is not directly comparable over time and the Commissioners note that the previous approach may have resulted in some interventions being labelled as audits which today could be differently classified. With this caveat, the Commissioners have set out in Table 1 details of audits and other compliance interventions carried out by them from 2008 - August 2013 inclusive.

I am satisfied that notwithstanding the pressure on resources and skills due to the loss of some experienced staff Revenue continues to carry out a substantial compliance programme involving audits and other compliance interventions.

Table 1: Audit & Compliance Interventions 2008 – 2013 (End August 2013)

Table 2: Extract from Revenue’s 2012 Annual Report which sets out the classification of compliance interventions currently in use in Revenue.