1999 Finance Bill change considered

THE Minister for Finance is considering amendments to the Finance Bill proposed by the Institute of Taxation.

These include making the Revenue Commissioners give a formal notice period before exercising its proposed powers to examine taxpayers bank accounts and also a mechanism whereby an ombudsman could review the Revenue's desire to conduct any such examination.

Department of Finance sources point out that the Revenue has already committed itself to a notice period for taxpayers before seeking details on their bank accounts. Taxpayers may also seek a remedy by way of judicial review of the Revenue's decision making processes. The sources point out that no final decision has been taken on amendments in this area, which have been the subject of controversy since they were announced in the Finance Bill. The Institute of Taxation has been among the critics and has called for a tax ombudsman to oversee the use of Revenue powers.

While the Minister may consider some amendments, it appears that the Government is determined that the overall thrust of the reforms will be carried through. The new expanded Revenue powers have been defended by Mr Martin Cullen, Minister of State at the Department of Finance. He said he detected an ambivalence in public attitudes. "The taxpayer is rightly concerned when cases of tax evasion come to notice but may shrink from giving new powers when these are suggested."

Speaking at the Institute of Taxation annual dinner in Dublin last night, he said he was "heartened by the public acknowledgement by leading tax consultants that Revenue have not abused their existing powers and can be expected to behave in a like manner in the future". Mr Cullen said the powers are not being sought to "hound the small man or woman, or to conduct busybody searches of an individual's bank account".

He noted that the chairman of the Revenue Commissioners had said public confidence in the tax collection system has taken a dent. "We need to repair that damage. We need to do so in a measured way and this is what the government has sought to do". Mr Cullen also referred to the structural changes which are proposed in the Finance Bill for pension provisions.