Marian Harkin (Sligo-Leitrim, Independent)
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72. To ask the Minister for Finance further to Parliamentary Question No. 154 of 17 November 2022, the specific data points from the Revenue Commissioners' data holdings, data analytics and risk assessment that system-prompted the decision by the Revenue Commissioners to implement seize and release VRT enforcement performance targets for 2017 to 2019, which prompted the decision to cease the setting of seize and release performance targets; the date of such decision; and if he will make a statement on the matter. [59715/22]

Marian Harkin (Sligo-Leitrim, Independent)
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73. To ask the Minister for Finance further Parliamentary Question No. 155 of 17 November 2022, if seize and release VRT enforcement performance targets have been set for any other years since the introduction of the seize and release procedure; if so, the performance targets set for each such year; if seize and release performance targets were set by region, unit or other; if seize and release performance awards were paid to persons or units for meeting such targets; if so, the amounts by year; if sanctions were applied individually or units for not meeting seize and release performance targets; if so, the nature of those sanctions; and if he will make a statement on the matter. [59716/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 72 and 73 together.

Officers of the Revenue Commissioners have a statutory power under section 141 of the Finance Act 2001 to seize a vehicle as liable to forfeiture where there has been a breach of VRT legislation. Revenue has statutory discretion to restore goods that have been seized as liable to forfeiture. This process is referred to in the Vehicle Registration Tax Manual Part 5 - Enforcement. I am aware that Revenue’s approach to enforcement of the law relating to VRT is that in each instance where a failure to comply with the relevant legal requirements is detected, the matter is dealt with in a manner that is fair and proportionate to the circumstances of the particular case.

As outlined in response to Parliamentary Questions No. 154 and No. 155 of 17 November 2022, I am informed that Revenue’s approach to confronting non-compliance, including in relation to VRT, is informed by risk. Each year Revenue focuses its compliance resources on areas that pose risk to the tax system as determined by its data holdings, data analytics and risk assessment systems. In confronting non-compliance specifically related to VRT, the level of risk is determined in the main by compliance behaviour displayed either generally or by specific taxpayers. Such information informs Revenue’s annual business planning process.

I am advised that Revenue’s multi-tiered approach to business planning supports the achievement of its strategic direction, as set down in its Statement of Strategy in a given period. Annual high-level priorities form the basis for the development of operational business plans which include a mix of appropriate elements such as initiatives to support and facilitate voluntary compliance, and compliance intervention initiatives to identify and confront non-compliance. I am advised that performance targets may be used as part of this process and some of the relevant data requested by the Deputy is reflected in my reply to Questions 154 and 155 of 17 November. The additional data requested by the Deputy necessitates some further compilation of data by Revenue which cannot be completed in the time available. I am advised by Revenue that this information will be provided directly to the Deputy as soon as it is available.

Performance targets when they were used by Revenue in relation to VRT matters were used as an indicator of progress with each of the core components of the compliance management regime for VRT. Awards are not paid to Revenue officials in relation to seizures, penalties etc.