Written answers

Tuesday, 19 January 2016

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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163. To ask the Minister for Finance his views on the Revenue Commissioners ceasing to engage with a taxpayer on an amount owed after referring the collection of the debt to an external solicitor or sheriff; if it is appropriate for the Revenue Commissioners not to engage in further negotiations, even though there may be matters to be negotiated after the referral of the case to a third party; if it is further appropriate that the Revenue Commissioners can devolve responsibilities in relation to the collection of taxes in this manner; and if he will make a statement on the matter. [2280/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that its clear preference is to always engage directly with taxpayers and businesses that are experiencing temporary cash-flow difficulties rather than deploying debt collection/enforcement sanctions.

However, any such engagement is predicated on open and honest discussion by the taxpayer/business, including a willingness to identify and agree a mutually satisfactory payment arrangement. The arrangement will always include an interest element, which is a statutory charge that Revenue has no discretion on, and will require a clear commitment from the taxpayer/business to pay future taxes as they fall due.

Revenue has also assured me that cases are only referred to the Sheriff or to an external solicitor as a last alternative where discussions with the taxpayer/business have failed to resolve the issue. Once a tax debt is referred to the Sheriff or external solicitor, Revenue generally ceases to negotiate directly with the taxpayer/business.

Revenue does of course continue to negotiate directly with the taxpayer/business on all issues other than the specific debt that was referred to the Sheriff or external solicitor. Revenue may also, in exceptional circumstances, agree to re-engage with the taxpayer/business in relation to the referred debt where relevant and previously unknown issues subsequently arise. However any such re-engagement will require the taxpayer/business to firstly pay any fees or expenses already incurred by the enforcement agent.

If there are particular issues that have arisen in a case since it was referred for debt collection/enforcement, then the Deputy should advise the taxpayer/business to make immediate contact with Revenue. If there are no emerging issues, the Deputy should advise the taxpayer/business to engage with the Sheriff or external solicitor who have discretion to agree a mutually suitable payment arrangement.

Revenue has taken a very proactive approach to taxpayers/businesses experiencing difficulty in paying their taxes. I strongly advise any taxpayers/ businesses in difficulty to engage early with Revenue and not to ignore demands for payment. Enforcement is a last resort and the system would cease to work effectively if following referral the taxpayer/business could re-open negotiations directly with Revenue.

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