Written answers

Tuesday, 10 November 2015

Department of Finance

Revenue Commissioners Audits

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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181. To ask the Minister for Finance the number of audits the Revenue Commissioners carried out in respect of self-employed contractors, including those who operate through a company structure, in 2013, in 2014 and in 2015 to date; the profile of those contractors by sector; the number of completed audits where the Revenue Commissioners calculated that additional tax was due to the State; the amount of tax, interest and penalties calculated as being due; details, including numbers, of the Revenue Commissioners' plans to continue to focus on this area in 2016; and if he will make a statement on the matter. [39324/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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It is assumed that the Deputy is referring to the National Contractors' Project being run by the Revenue Commissioners.

Revenue has provided the following data in relation to this project:

YearNo of Company Audits No of individual (Director) AuditsTaxInterestPenalties
2013200129€3,068,499€821,856€976,010
2014428321€6,693,637€1,930,190€1,814,793
2015 (to 22/10/2015)8165€1,550,458€442,695€394,076
Totals 709 (of which 551 yielded)515 (of which 101 yielded)€11,312,594€3,194,741€3,184,879
SectorsEngineering Sch E Directors Management Consultancy Computer Consultancy Other categories
-43.8%18.9%8.3%5.9%23.1%

I am advised by Revenue that they expect to bring the remaining audits in the National Contractors' Project to a conclusion by the end of 2016. 

The rules in Revenue's risk analysis system (REAP) have been updated to take account of the results of the National Contractors Project and will be further updated, as necessary, in light of the outcome of the remaining audits.  I understand from Revenue that it will continue to examine the tax risks arising in the contracting sector in 2016. This will be done on a case by case basis having regard to the matters highlighted through Revenue's risk analysis system. Revenue is not in a position to anticipate at this time the numbers of such cases that may be selected for audit in 2016.

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