Mattie McGrath (Tipperary South, Independent)
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199. To ask the Minister for Finance if he will ensure that all registered VAT agri-contractors and FCI members will be entitled to claim back the carbon tax against their income tax as this tax is double taxation (details supplied); and if he will make a statement on the matter. [2456/14]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy's question relates to the double deduction for carbon tax on farm diesel which I provided for in Finance Act 2012.

Under this provision, farmers are allowed a deduction in computing their farming profits or losses for the amount of additional carbon tax they incur on purchases of Marked Gas Oil following the €5 per tonne increase in the rate of carbon tax on certain fuels from 1 May 2012.

This was provided in the context of a commitment in the Programme for Government.

I have no plans to extend the current double deduction for carbon tax in respect of Marked Gas Oil to agricultural contractors.

Mattie McGrath (Tipperary South, Independent)
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200. To ask the Minister for Finance if he will ensure that all invoices carry a VAT number or PPS number for moneys claimed against income tax and that if a sole trader does not have this then that payment should go down to personal drawings; and if he will make a statement on the matter. [2457/14]

Michael Noonan (Limerick City, Fine Gael)
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For a payment to qualify as an allowable deduction, by either a sole trader or a company, the payment must be expended wholly and exclusively for the purposes of a trade or profession. It would appear the Deputy is proposing that, notwithstanding that expenditure met that test, a deduction would not be permitted unless an invoice carried either a VAT or a tax reference number.

The Irish economy is one of the most open economies in the world and significant amounts of services and goods are both acquired and sold cross border. In many instances there can be no requirement that the foreign provider must register for tax in this State. The proposal would therefore require a further administrative burden be placed on Irish businesses over businesses carried on outside the State by requiring those businesses to amend their records to incorporate this proposal. In order to prevent abuse there may also be a need or requirement for the taxpayer to verify the PPS number. Again this would be a further administrative burden.  Therefore, while I appreciate the proposal is attempting to thwart non-compliance for the present I do not believe this is the correct approach.

Revenue s tax and duty compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow economy. Revenue tackles the problem of the shadow economy through a range of compliance and audit interventions including targeted special projects. A variety of methodologies are used by Revenue to identify those who are operating in the shadow economy including covert surveillance, cold calls to businesses and venues as well as pre-arranged aspect queries on specific items.