Written answers

Tuesday, 11 July 2017

Department of Finance

Revenue Commissioners Staff

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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124. To ask the Minister for Finance the estimated amount the tax take would increase by in 2018 by hiring 125 qualified Revenue Commissioners staff to tackle black market activity and tax evasion (details supplied). [32122/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, 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.

It was estimated that by increasing staff on compliance projects such as oils, tobacco and alcohol by 100 could raise €20m per annum. On this basis it is estimated that increasing staff on compliance projects such as oils, tobacco and alcohol by 25 could raise €5m per annum.

It was noted that 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, it is not possible to accurately estimate the additional yield that would arise in 2018 from the recruitment of new staff in 2018.

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.

In the preparation for the Estimates of 2015, 2016 and 2017, Revenue made business cases for additional resources. Over the Budgets of 2015, 2016 and 2017, they were provided with an increase of 266 (126, 50 and 90) in additional resources to deal with a wide variety of staffing requirements across audit and compliance functions, debt management functions, international tax, etc. This Government will continue to carefully consider any request by Revenue for additional resources.

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