The annual report of the Revenue Commissioners for 1995, makes encouraging reading. Total tax revenue last year reached a record £10.9 billion, an increase of £712 million on 1994 if one ignores the distortion of tax amnesty receipts. Better intelligence and streamlined operations allied to painful penalties and interest charges are proving effective. This will be welcomed by those who feel they are paying their full share of tax and wish earnestly that others do the same.
The Revenue commissioned a market survey of, customer satisfaction and the results show a "generally positive disposition of Irish business people in respect of their interaction with Revenue". While this excerpt is, no doubt, a wholly accurate reflection of the survey's findings, it is a pity that it was decided not to publish the survey results in full.
The report discloses that there were over 24,000 tax audits during the year and they yielded £141 million. It would be wrong to assume however that this represents tax revenue that would not have been paid had there been no audit; a tax audit is often awaited by companies to clarify the tax position of certain payments. Audits, in any event, are not dreaded in the way they used to be. The Revenue once sent auditors on varied assignments, now it has specialised units dedicated to specific sectors which operate with much greater efficiency.
The report, unfortunately, does not break down audit activity. It should, for example, disclose the number of random audits carried out; these are extremely useful exercises but in 1994 no random audits at all were carried out because staff were so busy dealing with the tax amnesty. The black economy is booming - the lowest reliable estimate of its worth is £1.5 billion a year. The construction and catering industries harbour much of it, especially at the sub contracting level. It undermines compliance and drives legitimate businesses to the wall. Last year the Revenue pulled a further 1,755 companies and businesses into the tax net, virtually the same number as in 1994. It is an area that is deserving of all the resources that the Revenue can muster.
That the Revenue Commissioners are more efficient and more focussed than ever before is to be welcomed because there has probably never been so much anxiety that individuals - especially among the criminal fraternity - are living in luxury but with no identifiable income and, of course, paying no tax. Section 19 of the 1983 Finance Act allows the Revenue to assess wealth gained from illegal or unknown activities but there have been doubts about its effectiveness. This is despite the fact that the Revenue has extensive powers of arrest and search without warrant and that accused tax evaders are deemed to be guilty until they prove themselves innocent.
Yesterday's committee stage passage of the Criminal Assets Bureau Bill is of much consequence in this regard. It sets up a bureau in Dublin's Harcourt Street which will have the expertise and the legislative backing (especially anonymity for Revenue staff to enable it to tackle the most ruthless criminal elements. The Minister for Finance, Mr Quinn, told the Dail committee that "there will not be a day lost in acquiring the assets of people who have made money by criminal activity". It is a sentiment which should find unanimous and vigorous support throughout Leinster House.