Mattie McGrath (Tipperary South, Independent)
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14. To ask the Minister for Finance the reasons for his opposition to the introduction of a mandatory invoicing system for all work carried out by farm contractors; and if he will make a statement on the matter. [1555/14]

Mattie McGrath (Tipperary South, Independent)
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16. To ask the Minister for Finance if he will introduce an amendment to the Finance Act to mandate for the requirement of all farm contractors to produce a receipt to match payment made by cheque or other monetary means and so eliminate the ongoing threat to registered farm contractors posed by unregistered operators in the so called black economy; and if he will make a statement on the matter. [1554/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 14 and 16 together.

I am informed by the Revenue Commissioners that farmers and agricultural contractors are subject to the same requirements in relation to record keeping as other businesses. All businesses are required to keep proper books and records and to retain such books and records for a period of six years. In particular, any farming or other business that claims a tax deductible expense for any expenditure must have a satisfactory record of that expenditure.

I am also informed by the Revenue Commissioners that they tackle the problem of the shadow economy through a range of compliance and audit interventions including through targeted special projects. In addition, they deploy a range of compliance activities such as risk analysis, covert surveillance, intelligence gathering, information exchange with other State Agencies, working with Government agencies and working with business representative bodies.

The Revenue Commissioners keep their tax compliance programmes under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow economy. I am conscious that the need to tackle the shadow economy must be balanced against imposing additional administrative burdens and cost on business, but I will respond positively where Revenue makes a persuasive case for further powers or new obligations on business to strengthen their hand in dealing with shadow economy activity. In this regard I am aware that representative bodies representing agricultural contractors have raised concerns about tax evasion and unfair competition in the agricultural services sector and I would encourage them to provide whatever information they have to the Revenue Commissioners. I understand that the Commissioners would be very happy to meet the representative bodies to discuss their concerns and to receive any information they have about specific instances of fraud.