Bríd Smith (Dublin South Central, People Before Profit Alliance)
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162. To ask the Minister for Finance the number of audits and prosecutions taken by the Revenue Commissioners in connection with evasion or fraud in the non-payment of categories of tax (details supplied). [22040/17]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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163. To ask the Minister for Finance if the figure of €555 million savings for 2017 (details supplied) is a figure that reflects all moneys recouped from audits and compliance interventions or a projected assumption similar to assumptions used in calculating moneys saved from welfare fraud; the number of Revenue Commissioner officials involved in conducting the revenue audits and compliance interventions; and the number of audits conducted over the past five years. [22077/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 162 and 163 together.

Revenue is a fully integrated tax and customs administration. Revenue has approximately 2,000 staff engaged on activities that focused on confronting non-compliance. These activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection activities and interventions. This level of resources has been maintained by Revenue notwithstanding the challenges since 2009 in regard to the overall reduction in Civil Service numbers which included Revenue.

Revenue carries out a programme of compliance interventions that seek to achieve the optimum balance between minimising  the burden on the compliant taxpayer and tackle, in an appropriate way the non-compliant taxpayer.

Not all interventions are in the form of audit – other less resource-intensive interventions are also used (Aspect Queries and Profile Interviews). The intervention selected is  the one considered to be the most effective in targeting the specific risk or risks identified, and to influence the compliance behaviour of the taxpayer.

I am advised by Revenue that the recently published Annual Report for 2016 included a table at Page 99 (www.revenue.ie/en/about/publications/annual-reports.html) which provides details of Audit and Compliance activity for the year 2016, with comparative figures for 2015. The amount of €555.6 million shown as yield for 2016 comprised of:-

- Payments received as a result of compliance activities

- Payments included in phased payment arrangements and

- Amounts of tax that were referred for collection activity including sheriff/solicitor enforcement.

Revenue do not include in the settlement figures any future savings element.

I am informed by Revenue that a detailed breakdown per the categories requested in Parliamentary Question No. 163, ref 22040/17 (trading and non-trading income) is not captured or maintained, as a matter of course, and is therefore not available.

The numbers of audits conducted over the last five years are included in the table together with the number of audits identified where Corporation Tax and Capital Gains Tax were examined. The table also shows the total number of non-audit interventions but it is not possible to provide a breakdown of those non-audit interventions into the categories requested in Parliamentary Question No. 162, ref 22040/17.

I am advised by Revenue that figures, year-on-year, are not directly comparable due to classification changes of compliance interventions and the continuing evolution of their compliance programmes to reflect changes in the economy and the efficient use of resources.

Investigating cases with a view to the institution of prosecutions is a key element of Revenue’s strategy for confronting non-compliance and files are prepared for the consideration of the Director of Public Prosecutions in instances where it is considered that the facts and circumstances warrant such a course of action and evidence to sustain such a course of action is available.

In respect of matters relating to CT in the period from 2012 to 2016, there have been two such prosecutions. One of those cases concluded, in 2012, with the entering of anolle prosequi. The other case is before the Courts at present. There have also been two convictions in respect of matters relating to CGT in the same period.

There were 18 convictions in 2016 for serious tax and duty offences, which related to matters concerning income tax, value added tax, relevant contracts tax and excise duty. At the end of 2016, there were 31 cases relating to alleged serious tax and duty offences in which prosecutions had been instituted and where the matter was before the Courts. In addition, there were 108 cases that were under investigation by Revenue’s Investigations and Prosecutions Division, with a view to prosecution, at that date.