Michael McGrath (Cork South Central, Fianna Fail)
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233. To ask the Minister for Finance to outline his views on the level of tax compliance, including whether it can be increased by providing the Revenue Commissioners with additional resources; and if he will make a statement on the matter. [10650/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the overwhelming majority of taxpayers file and pay their taxes and duties on time. This is evidenced by the fact, for example, that in 2015 timely payment and return compliance ranged from 85% for the smallest cases to 98% for the largest cases. Timely compliance for Local Property Tax was 97%.

I know that Revenue has a strong focus on service as a very important underpinning in helping taxpayers and businesses to be timely and voluntarily compliant. The recently published Revenue Annual Report, 2015 set out the range of actions undertaken by them in that regard and I commend that approach by Revenue.

In an ideal world everyone would be timely compliant but of course the reality is a little different. Despite the high timely compliance rates, I know that Revenue has a keen focus on tackling non-compliance in all its guises and in ensuring that the efforts of those who are timely compliant are not undermined by those who choose to be non-complaint and engage in tax evasion. I am aware that Revenue has a particular risk focus to its compliance intervention programmes. Risk-assessment techniques and systems identify and rank suspect or risky cases and this information is presented to caseworkers and auditors so that the appropriate intervention is actioned. Compliance interventions range from a simple phone contact to audit to criminal prosecution.

In relation to the impact of its non-compliance focus, I am advised by Revenue that, for example, its audit and compliance interventions in 2015 yielded €642.5m. 28 criminal convictions for serious tax and duty evasion were also secured in 2015. 160 tax avoidance cases were settled during the year netting €42m for the Exchequer. Drugs and tobacco seizures valued at €23.1m and €34.4m respectively were realised.

Opportunities to increase tax revenue were identified by Revenue in their Comprehensive Review of Expenditure 20014, published on their website. As part of the 2016 Estimates process Revenue sought to increase its staff resource to confront non-compliance by 50 whole time equivalents in order to increase the tax and duty yield from compliance interventions. This followed on from a net increase in the 2015 Estimate process of 126. Following the 2016 Estimates process, I am very pleased to be able to say that Revenue's multi-annual budget was increased to provide for an average annual whole time staff equivalent of 5,924, an increase of 50 on the 2015 provision. An additional €75m yield from compliance interventions was included in Budget 2016 calculations based on the recruitment of additional staff and investment in the development of a new debt analysis tool.

Revenue's objective of making taxes and duties easy to pay and hard to avoid is a very important one. It is an objective in which it is succeeding. An appropriately resourced tax and customs administration is essential in ensuring that we continue to experience high timely compliance and that non-compliance and tax evasion is appropriately sanctioned.

Over the last two year's Estimates process I have supported the business case by Revenue to increase its staffing levels by a total of 176 staff. This follows on from the overall reduction in Revenue and Civil Service numbers since 2008.

I am also informed by Revenue that ongoing investment in Information Communications Technology (ICT) is critical to ensure that Revenue provides a modern service to the compliant but also better targets non-compliance in all its forms. Revenue's policy throughout the economic crisis was to maintain investment in ICT to the greatest extent possible given the difficult budgetary circumstances.

In the context of the 2017 Estimates process I will carefully consider any proposals that Revenue make in relation to resources.