ROI And Northern Ireland Join Forces To Combat Tax Evasion

by Jason Gorringe, Tax-News.com, London

19 February 2002

The Irish Republic Revenue Commissioners and Customs and Excise Northern Ireland have revealed that they are to join forces in order to combat cross border tax evasion.

The announcement preceded the release of a British report, which on Friday revealed that more than half of petrol stations in Northern Ireland are selling fuel purchased illegally in the Republic of Ireland, resulting in an annual loss of around 624 million euros to the British Exchequer.

The two tax authorities recently met in Belfast to discuss the issue of cross border taxation, and earlier this month, the North-South Ministerial Council (NSMC) called for tax relief for NI citizens working in the Republic, claiming that recent income tax reductions in the latter region have caused some Northern Irish workers to be penalised.

The Revenue Commissioners and Customs and Excise Department have announced that they will be targeting several business sectors for closer scrutiny over the coming months. Sub-contractors from the North supplying hospital and health boards will be investigated following suspicions that many are not registering for VAT, and owners of private yachts and powerboats will also come under scrutiny, again over VAT irregularities.

Following the results of the British report, the tax authorities also announced that close checks on the oil and alcohol sectors will continue, as in the former case, significant underpayments have been detected in both jurisdictions.

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