Tommy Broughan (Dublin North East, Independent)
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17. To ask the Minister for Finance the estimated savings which could be achieved for the Exchequer by increasing the number of inspectors and auditors employed by the Revenue Commissioners by an additional 100 persons. [39349/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that in 2011 Revenue's Comprehensive Review of Expenditure noted that there is a significant deterrent and voluntary compliance effect on behaviour of an effective, risk based compliance programme and that by increasing audit, investigation and compliance resources by c.125 staff, at an estimated cost of €6.5m per annum, an additional exchequer yield of €100m per annum could be achieved.  On that basis, it is estimated that increasing these resources by an additional 100 would cost an estimated €5.2m per annum with an additional exchequer yield of €80m. The additional yield was based on an estimate that each additional fully trained auditor has the capacity to bring in an average of €800,000 in audit yield.  The investment in the training and development of a Revenue Auditor can take up to three years, depending on previous relevant experience. Therefore the full additional yield for the Exchequer would not be available immediately.

Revenue undertakes a range of risk management interventions to target and confront those who do not comply, including tax evasion and black market activity. The objective is that people are deterred from filing inaccurate returns and from engaging in shadow economy activity and smuggling.  The range of interventions has broadened since 2011. Interventions include appraisals, aspect queries, profile interviews, assurance checks, enforcement, investigation and prosecutions, as well as audits.  The appropriate intervention depends on the relevant risk. The average rate of return on each type of intervention varies depending on the intervention.  In some types of interventions to tackle evasion and the black economy, such as enforcement, the focus is on the detection of drugs and fiscal smuggling where the direct exchequer yield is not the immediate objective.

It should also be recognised that Revenue operates within Government policy in relation to civil service numbers, has to prioritise its various tasks and must, for example, also deploy resources to encourage voluntary compliance by making it easier and less costly to comply.