Net tax take climbs to £10.8bn

PAYE workers paid £3.5 billion in tax and PRSI in 1995, up £255 million on the previous year, the Revenue Commissioners' annual report has shown. VAT netted almost £2.9 billion for the Exchequer, an [increase of £291 million.

The report reveals that income from the controversial residential property tax was down £1.3 million to £12.1 million last year, partly because the tax bands were changed. However, the Revenue Commissioners challenged more than 1,000 assessments which yielded £500,000.

The report shows that the booming economy has resulted in an improved tax take for the Exchequer. Total revenue collected on behalf of the State amounted to £14.3 billion. After repayments, net receipts; amounted to £10.8 billion, an increase of £475 million.

However, the report says that, when the tax amnesty receipts are deducted from the 1994 figures, the overall increase in 1995 was £712 million.

Net receipts exceeded expectations across most individual tax heads. There was an increase of £38 million in overall direct taxes, £46 million in indirect taxes and £27 million in capital taxes when compared with Budget estimates.

Cash generated from excise duties - increased by £134 million to £2.11 billion over 1994 figures. This reflected the increase in consumer spending as well as the impact of the Budget increase in the duties on tobacco. However, £25.6 million of the increase arose because of the introduction of a new charging system for duties involving the sale of revenue tax stamps," it says. This is a once off payment which will not be repeated.

Corporation tax rose by £15.6 million on 1994. This was £150 million less than Budget expectations. The report says the shortfall can be attributed to a temporary decline in the profitability of some financial and insurance sectors.

There was an increase in Deposit Interest Retention Tax (DIRT) receipts which rose £24 million to £114 million on 1994 figures. Revenue from withholding tax was down £5.5 million.

The report reveals that Revenue Commissioners staff conducted more than 24,000 audits on companies and individuals which generated £140.6 million for the Exchequer. A further £8.4 million was collected by the anti avoidance unit.

It is understood that the Revenue Commissioners have decided to target the financial sector next. Last year, it concentrated on publicans, hoteliers, restaurateurs and farmers.

The report lists 252 companies and individuals who had liabilities in excess of £10,000. These are companies/individuals who did not make a voluntary disclosure to investigators before the audits began, according to a spokeswoman for the Revenue Commissioners.

These particular investigations resulted in £9.1 million being paid by individuals in outstanding taxes and penalties. The highest payment £620,000 was made by a Dublin company.

The highest individual payment was made by Mr Daniel O'Connor, a garage owner in Co Kerry. Mr O'Connor, with an address at Knockbrack Lower, Knocknagoshel, paid £431,721 for underpayment of tax. The figure included £124,800 in interest and penalties.