Bernard Durkan (Kildare North, Fine Gael)
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208. To ask the Minister for Finance if it is no longer the policy of the Revenue Commissioners to receive or issue payments in respect of tax liabilities or refunds arising thereto by way of cheque, which raises considerable administrative difficulties for sole traders and small businesses; and if he will make a statement on the matter. [42861/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that it operates its tax payment and repayment systems in line with the Government's National Payments Plan, which includes migration from cheque usage to more cost effective electronic payment methods. A key priority for the National Payments Plan is to reduce overall cheque usage in Ireland to EU levels. In this regard Revenue is currently processing almost 98% of tax payments (by value) and 84% of tax repayments (by value) through electronic channels. Further system upgrades in early 2016 will increase the number of tax repayments suitable for repayment through electronic channels.

While Revenue's preference is for customers to pay and file online using Revenue's Online Service (ROS), payments can also be made by Direct Debit, Single Debit Authority, which operates like an 'electronic cheque' and enables once-off payments to be made directly a bank account, or by credit/debit card.

Revenue has confirmed to me that while its strong preference is to process all payments via the various electronic channels, this does not mean that it will refuse a cheque payment from a taxpayer.  However cheque payments are more expensive for both the taxpayer and for Revenue and staff will always encourage customers to consider the cheaper electronic methods.

In regard to tax repayments, Revenue will transfer the amount owed directly to the taxpayer's bank account where systems permit and the relevant details are available. The electronic transfer means that the funds are available to the taxpayer/business much quicker than if repaid by cheque. However, in situations where it is not possible or the necessary bank account details are not available to facilitate an electronic transfer then a refund can be made by cheque.