Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that it strongly encourages payment and tax return filing compliance by making it as easy as possible for taxpayers to meet their statutory obligations on a timely basis, thereby avoiding any exposure to interest or penalties. This is achieved by providing simplified procedures to the greatest extent possible, user friendly on-line solutions that are available on a 24/7 basis and high levels of customer support when required.

Revenue’s risk identification systems and procedures constantly monitor tax returns to ensure compliance and where anomalies are identified interventions are carried out to confirm the accuracy of the data provided. The intervention type is dependent on the level of risk involved and the level of engagement displayed by the taxpayer. The intervention types include assurance checks for the more straight-forward issues up to tax audit and investigation with a view to prosecution for the more serious risks. Any additional liability identified is subjected to additional penalty and interest charges.

Revenue also has a clear preference to engage with taxpayers experiencing temporary tax payment difficulties to agree mutually acceptable solutions, which will include an interest element, rather than deploying debt collection/enforcement sanctions to secure outstanding liabilities. However, where there is no engagement or a lack of commitment to identifying and agreeing a solution then Revenue has no option other than to use its debt collection/enforcement powers up to and including insolvency proceedings in the most egregious cases.

The number and value of penalties charged/collected together with the amounts of interest charged/collected by Revenue for the years 2012 to 2018 and to date in 2019 by tax head are set out in tables 1-4 below. Table 5 sets the number of insolvency cases by category for the years 2012 to 2018 and to date in 2019 that are monitored by Revenue. The monitoring process includes engaging with insolvency practitioners to maximise payment of liabilities, ensuring Company Law is enforced and working constructively with Personal Insolvency Practitioners (PIPs) and Approved Intermediaries. The Liquidation and Bankruptcy proceedings initiated by Revenue are separately identified in Table 5.

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that it is not possible to identify cases where the non-payment of VAT and excise was the specific reason for a seizure of goods at ports and airports. Revenue has provided me with details of all excisable goods seized for the years 2014 to 2019 (to the end of November), for non-compliance with customs and excise obligations at ports and airports. These are set out in the following table.

The rules applicable to VAT and excise on goods ordered from abroad are governed by the EU VAT Directive (Council Directive 2006/112/EC) and the EU General Excise Directive (Council Directive 2008/118/EC). Different rules apply depending on whether the goods are purchased within the EU or are purchased from a third country.

Goods sold by a supplier in another Member State to a private consumer in Ireland are liable to VAT in the Member State of the supplier, provided the value of their total sales to customers in Ireland does not exceed the Irish registration threshold of €35,000 for distance sales. Where sales to private consumers in Ireland exceed this threshold, the supplier must register and account for VAT in Ireland. Suppliers that do not exceed the Irish registration threshold can opt to register and account for VAT in Ireland on their distance sales.

Where goods are purchased by a VAT registered business in Ireland from a supplier in an EU Member State, no VAT is charged, and the Irish business will account for the VAT based on a reverse charge in their VAT return.

In the case of excisable products being dispatched to an address in Ireland from another EU Member State, the person dispatching the excise goods must appoint a tax representative established in Ireland who is liable for the excise due on such orders. The tax representative must declare each order to Revenue prior to dispatch and must also provide a guarantee for the excise due. As soon as the consignment is delivered, the tax representative must ensure that the excise duty is paid to Revenue. Where the person dispatching the goods has not appointed a tax representative in the State, the customer must arrange to pay the excise duty in advance.

Where goods are ordered from another EU Member State they are not subject to Customs Duty.

Goods ordered by persons, both business and private consumers, from suppliers established outside the EU are subject to customs duty, VAT and where applicable, excise duty which are normally payable prior to the release of the goods into free circulation in Ireland. However, in the case of VAT, currently small consignments below a value of €22 which are imported from outside the EU are exempt from VAT and such consignments, below a value of €150, are not subject to Customs Duty.