Irish Revenue Extracted More From Taxpayers In 2005

by Jason Gorringe, Tax-News.com, London

06 June 2006

The Irish Revenue Commission has announced that 2005 was a 'very strong' year for tax collection, as the department's ongoing special investigations into tax evasion helped push the year's final figure close to EUR40 billion ($52 billion).

Announcing the publication of the Revenue's annual report on May 31, Chairman Frank Daly said that net receipts amounted to EUR39.5 billion in 2005 as EUR3.7 billion more in tax was collected compared with 2004.

Daly stated that there was a substantial decrease in the overall debt figure between 2004, when outstanding tax stood at EUR1,217 million, and 2005, by which time it had fallen to EUR1,085 million. Arrears of tax and duty as a percentage of total gross receipts now stand at an all time low of 2%, and the Revenue is confident of collecting 90% of the outstanding debt.

Special investigations yielded a total of EUR536.8 million in 2005, of which EUR382 arose from the Single Premium Insurance Policy investigation. The cumulative total from special investigations currently stands at EUR2.2 billion.

Twenty-four convictions for serious tax and duty offences were secured in 2005, of which twelve were for tax offences. A further 1,683 convictions were obtained for summary offences. Over 1,000 of these were for the non-filing of tax returns. Total audit and assurance check activity yielded EUR575.37 million.

Revenue investigators are also preparing to prosecute a further 61 companies and individuals in the near future, mostly for serious tax evasion.

"At the end of our 83rd year I am pleased to report solid progress on so many levels, to note that the vital signs in Revenue are good and to record our professional satisfaction with a very successful year," Daly commented.

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