Written answers

Wednesday, 27 May 2015

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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60. To ask the Minister for Finance the amount of outstanding uncollected taxes; the proportion of same the Revenue Commissioners expect to recover; if new measures are planned to assist in the collection of outstanding taxes; and if he will make a statement on the matter. [20945/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the total amount of outstanding uncollected taxes at 31 March 2015 was €1,695 million. This amount represents a reduction of €145 million (8%) on the equivalent 31 March 2014 figure. The total 'debt available for collection' (DAC) figure at that point (31 March 2015) was €907 million, which is a reduction of €102 million (10%) on the equivalent 2014 figure.

The DAC figure, which is in line with other comparable jurisdictions, is a more accurate indicator of progress on tax debt reduction because it excludes elements of the overall amount that are beyond Revenue's control. These elements include debts that are under appeal to the Appeal Commissioners or the Circuit Court or that are subject to the various insolvency processes.

Approximately €384 million of the €907 million DAC figure is already subject to collection enforcement activity while a further €112 million is controlled under phased payment agreements between Revenue and the taxpayers in question. These phased payment concessions are only granted to taxpayers or businesses that are viable and have proved their capacity to meet the terms of any such agreement. The remaining €411 million is relatively new debt that is at various stages in the pre-enforcement collection cycle. This cycle can include, for example, discussions with the taxpayer or may involve the issuing of a 'final demand' for payment, which is a precursor to enforcement that affords the defaulter a finite period of time to get his/her affairs in order.

Revenue has successfully reduced the DAC figure by over €536 million since the economic downturn peaked in 2009 and on that basis I am happy that the balanced approach of limited debt rescheduling combined with early enforcement action where compliance is not forthcoming is delivering strong results.

Revenue has confirmed to me that it anticipates the current approach will deliver further positive outcomes in the coming year and I have no plans to introduce any changes at this time.

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