Michael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Finance the number of staff resources allocated to tax audit and investigation activities as announced in budget 2017; the extra amount spent on information technology systems capacity; the amount of extra tax taken in as a result of this initiative; the amount of extra tax he expects to be taken in over 2017; and if he will make a statement on the matter. [25212/17]

Michael Noonan (Limerick City, Fine Gael)
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In strengthening our commitment in tackling non-compliance, the 2017 Estimates provided an additional €5 million to Revenue for an additional 50 staff (full time equivalent) for audit and investigation activities, including tackling offshore tax evasion, as well as enhancing ICT systems capacity for data matching and data analytics in tax and duty compliance interventions.  It was estimated that the total yield in 2017 from this additional resource and tackling offshore tax evasion would be €80m.

Revenue continually invests in systems capacity to support a wide range of taxation processing and compliance activity across both their internal and external systems. Therefore any additional spend on systems capacity will not only facilitate data matching and data analytics but will also ensure the performance across a range of systems. As such any extra spend cannot be directly attributable to individual functions.

I am advised by Revenue that they have recruited over 100 Executive Officers to date in 2017, 65 of whom went into a comprehensive two-year audit training programme.  The balance went into an accelerated audit training programme, as they were already sufficiently qualified. It is anticipated that these staff will commence full time audit and compliance activities from mid-2017.  It is too early to say what the final yield will be from tackling offshore tax evasion, audit & investigations arising from additional resources in 2017.

I am advised by Revenue that they projected that approximately 500 audit staff will retire over the next five years. They currently have c.400 at various stages of audit training.  It is noted that the investment in the training and development of a Revenue auditor or investigator can take up to three to four years, depending on previous relevant experience.  Revenue plans to recruit c. 150 Executive Officers per annum over the next five years with the majority of these going into audit training based on current resource provision.