Record tax yield of £23.89bn last year for the Revenue

The Revenue Commissioners collected a record £23.89 billion (€30.33 billion) in 1999 and the organisation insists it is determined to convince compliant PAYE taxpayers that taxes are collected in a fair and even manner.

Announcing its annual results yesterday, Revenue chairman, Mr Dermot Quigley, said tax receipts are running slightly ahead in 2000 and he expects the overall tax take will again be well ahead of budget targets this year.

When repayments to business and individuals are accounted for, net tax receipts for last year amount to £18.5 billion, up £2.6 billion on 1998. The total tax take for 1999 is £1.2 billion ahead of budget targets.

In a booming economy the amount of money collected across the various tax categories was ahead of expectations with the total tax take up 15 per cent on the £20.6 billion collected in 1998. In a single day at the end of the tax year Mr Quigley said the Revenue collected a record £1 billion in taxes. Income tax receipts rose from £6.3 billion to £6.9 billion in the 12 months, accounting for 29 per cent of the total £23.89 billion collected by the Revenue and driven by the huge increase in employment. Some £5.3 billion in income taxes came from the PAYE sector, with income tax from the self-employed and others outside of the PAYE system amounting to £842 million.

The biggest single increase was in VAT which was up almost £1 billion at £6.6 billion, reflecting the strong growth in consumer spending. Excise duties were also substantially greater, rising from £2.8 billion to £3.2 billion, swelled by the consumer boom and increases in tobacco and vehicle registration tax since the Budget.

The corporation tax take was well above Government estimates. The Revenue collected £2.8 billion in corporation tax, compared with £2.2 billion in 1998 and came in £422 million ahead of target.

PRSI and health contributions rose from £2.6 billion to £2.99 billion.

Of the other taxes, stamp duty yielded £739 million for the Exchequer, up from £564 million in the previous 12 months. This includes duties of £178 million from share transfers with the bulk of the increase from property transfers.

Capital gains tax receipts rose from £195 million to £362 million. According to the Revenue, around £30 million collected was due to a once-off effect of a number of large settlements. Some of the increases were also due to the release of pent-up investment funds following the reduction of capital gains tax in the Budget.

Capital acquisitions tax increased from £117 million to £155 million. Customs duties fell, however, dropping from £173 million to £151 million. And residential property tax brought in just £2 million.

During the 12 months the Revenue collected £112 million in outstanding taxes, with £88 million in uncollectable taxes written-off.

Mr Quigley said 1999 had been a very difficult and demanding year for the Revenue with the organisation being subjected to close public scrutiny at the Dail Committee of Public Accounts DIRT inquiry, chaired by Mr Jim Mitchell. "Tax evasion in earlier years had undermined public confidence in tax administration, while the booming economy has also put new pressures on our people," Mr Quigley said.

The chairman maintained that nothing was more important to the Revenue than to repair the damage to public confidence in the organisation.