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

I am advised by the Revenue Commissioners that the settlement of tax, interest and penalties with individuals and companies in the context of a Revenue audit or other risk management intervention will include agreeing the necessary arrangements to recover any amounts underpaid.  However, in some cases an "Inability to Pay" claim may be made by the taxpayer. 

For the years 2011 to 2013, the following amounts were accepted and not collected as a result of "inability to pay" claims made during Revenue audits.  Also provided are details of yield from Revenue audits and other compliance interventions over the same time period:

Year	"Inability to Pay" claim Amounts	Yield from Audits & Other Interventions
2011	*€6.3m	€482.8m
2012	€22.7m	€492.4m
2013	€26.4m	€551.9m

*Data available from July 2011 only and no details are available for prior years.

The full responsibility to demonstrate inability to pay lies with the taxpayer.  Before Revenue accepts a claim of inability to pay, the taxpayer will have submitted a statement of affairs and other documentation to demonstrate their inability to pay.  If a customer's circumstances change (e.g. an unforeseen positive change in their financial circumstances) collection of the tax not previously recovered may be pursued.

I am also advised by the Revenue Commissioners that the approximate amount of tax written off in accordance with established guidelines, and published in their Annual Report, in each of the last five years is as follows:

Year	Amount
2009	€221m
2010	€299m
2011	€321m
2012	€287m
2013	€263m

Tax is only formally written off following a process of assurance that the amounts involved are uncollectible or regarded as uncollectible. Tax may be written off in instances where, for example, a business goes into liquidation, ceases to trade or where outstanding amounts are uneconomic to collect.  The vast majority, in some years up to 80%, is written off in circumstances of business failure including  where High Court processes such as liquidation or examinership are involved.