Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

126. To ask the Minister for Finance the general revenue compliance initiatives that are currently under way; and if he will make a statement on the matter. [32476/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Revenue Commissioners that achieving a high standards  of tax and duty compliance is their core business and that all of their resources are, directly or indirectly, deployed to support voluntary compliance and tackle non-compliance.  Compliance is at the heart of the Commissioners Mission and Strategy Statement.

The various compliance activities carried out by the Commissioners include debt management, tax returns compliance, anti-smuggling operations, risk-based and random compliance interventions, border control checks, tackling aggressive tax and duty avoidance schemes as well as work to combat shadow economy practices that include joint investigations with other Government Departments and agencies.  Revenue's Annual Report for 2013 which is available on Revenue's website at: will provide the Deputy with some sense of the breadth of the Commissioners' compliance activities.  

The Commissioners advise that in their compliance activities, their main focus continues to be on the riskiest cases. This strategy maximises tax recoveries and reduces the regulatory and administrative burden placed on largely compliant customers. Cases are selected in a number of ways including the use of REAP which is Revenue's electronic risk analysis system, the use of advanced analytics to support real-time risk models for VAT and PAYE and debt recovery to identify risky cases in realtime through enhanced third party information like supply chain data on fuel oil movements, merchant acquirer data on credit and debit card transactions and Government payments data.

The Deputy will also be aware from questions that he has raised previously in the House that specific programmes are currently ongoing in Revenue relating to compliance with Local Property Tax obligations, Household Charge Arrears and the National Contractors project to which he has received comprehensive replies.

It is clear to me that Revenue is very much a compliance focussed tax administration.  The various strategies and approaches they adopt to maximise compliance are regularly reviewed by the Commissioners and their ensuing programmes take account of the emerging risks and challenges.  I am also aware that Revenue monitors international developments for new ways of tackling all forms of non-compliance using a risk-based approach while ensuring that compliant taxpayers are not unduly burdened with unnecessary costs and administrative overheads.  

Over the last number of Finance Acts, I have introduced various measures to facilitate tax and duty compliance.  I will continue to respond positively through the Finance Bill to well designed proposals from the Commissioners that tackle non-compliance and support legitimate trade.