Tommy Broughan (Dublin Bay North, Independent)
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207. To ask the Minister for Finance the amount of revenue that would be generated by increasing the number of Revenue Commissioners personnel by 200 qualified persons to further robustly target tax evasion and black market activity; and if he will make a statement on the matter. [27258/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that Revenue's Comprehensive Review of Expenditure 2014 estimated that by increasing audit staffing resources by c.100 staff an additional exchequer yield of €50m per annum could be achieved. On this basis it is estimated that by increasing audit staffing resources by c.200 staff an additional exchequer yield of €100m per annum could be achieved. 

It was estimated that by increasing staff on compliance projects such as oils, tobacco and alcohol by 100 could raise €20m per annum. It also estimated that increasing staffing on investigations by 20 staff could achieve exchequer savings of €12m per annum.

On that basis, an increase of 200 staff on audit, compliance and investigation work targeting tax evasion and black market activity could raise between €40m and €100m per annum depending on the mix. In addition, it should be noted that there is a significant deterrent and voluntary compliance effect on behaviour of an effective, risk based compliance programme.  The investment in the training and development of a Revenue auditor or investigator can take up to three years, depending on previous relevant experience. Therefore the full additional yield would not be available immediately.

Revenue undertakes a range of risk management interventions to target and confront those who do not comply, including tax evasion and black market activity. The objective is that people are deterred from filing inaccurate returns and from engaging in shadow economy activity and smuggling.  The range of interventions has increased in recent years. Interventions include appraisals, aspect queries, profile interviews, assurance checks, enforcement, investigation and prosecutions, as well as audits.  The appropriate intervention depends on the relevant risk. The average rate of return on each type of intervention varies depending on the intervention.  In some types of interventions to tackle evasion and the black economy, such as enforcement, the focus is on the detection of drugs and fiscal smuggling where the direct exchequer yield is not the immediate objective.

It must also be recognised that Revenue has to prioritise its resources and must, for example, provide service for compliance, by making it easier and less costly to voluntarily comply.  The administration of taxes and duties requires a wide range of specialists and experts.

In that context in Budget 2015 and Budget 2016 I provided for an increase of 176 (126 and 50) in additional resources to deal with a wide variety of staffing requirements across audit and compliance functions, debt management functions, international tax, etc. In the context of the upcoming budget I will continue to support Revenue's case for resources and meet the diverse range of challenges facing the organisation.

Revenue appointed over 400 staff from open competitions in 2015, these staff were mainly deployed on Local Property Tax support, International Tax and on compliance interventions. Revenue has appointed over 467 staff to date in 2016 from open recruitment.  The recruitment in 2015 and to date in 2016 has been at all levels and across a diverse range of specialist skills areas such as tax and legal professionals, data analysts, economists and information technology experts.

It should be noted that the recruitment of staff and their training and development is addressed as part of an overall workforce planning process in Revenue. The capacity to recruit and develop Revenue staff needs to be addressed in a coordinated fashion.