Irish exchequer revenue down 19% but audits, assurance checks, special investigations and seizures yield solid results

The Revenue Commissioners collected 19% less tax in 2009 than in 2008 but they were activity level in other areas was consistently frenetic – as one might expect of a public sector agency that is second-to-none when it comes to high standards of efficiency and effectiveness.

The impact of the downturn on taxes in 2009 varied by tax heading.

 

Category	€	% Change v 2008
Customs	208,598,000	-15.9%
Excise	4,702,552,000	-13.6%
Capital  Acquisition Tax	254,258,000	-23.2%
Capital Gains Tax	541,849,000	-62.1%
Stamps	929,510	-43.7%
Income Tax (+ levy)	11,835,235,000	-10.2%
Corporation Tax	3,900,306,000	-23.0%
VAT	10,669,652,000	-20.6%
Other levies	1,213,000
TOTAL	€33,043,173,000	-19.0%

 

Tax Audits and Compliance Checks

Some 12,404 taxpayer audits in 2009 yielded €598.6 million.  The comparable figures for 2008 were 13,406  taxpayer audits that yielded €570 million

There were 361,299 assurance checks, 15,877 more than in 2008, that yielded tax revenue of €68.5 million (+€5.5 million)

Special Revenue Investigations

The tax yield from special investigations, €114.35 million was 109% higher than in 2008.  Special investigations embrace the evasion of Deposit Interest Retention Tax, Bogus non-resident deposit accounts, offshore assets, certain life assurance products, offshore Ansbacher accounts, Tribunals, National Irish Bank, Interest Reporting and certain trust and offshore structures used to conceal tax obligations.

There were 1,490 Special Investigations in 2009.  The cash cow in 2009, from a Revenue Commissioner perspective, was Interest Reporting when 1,214 taxpayers paid €55.3 million to the Revenue Commissioners, a liability they presumably would have preferred not to have arisen.

The cumulative yield from Special Investigations is €2,603.5 million from a total of 34,335 cases, including €41 million derived as a consequence of tribunals from 23 individuals.

 

Convictions

There were 453 convictions arising from Revenue matters in 2008 but this figure rose to 2,144 convictions in 2009, mainly attributable to persons convicted for the non-filing of returns.  There were 20 convictions for serious tax evasion in Ireland in 2008 and 10 such convictions in 2009.

 

Revenue Seizures

The Revenue Commissioners have been particularly successful in the seizure of illicit drugs, tobacco and other products.

Drug Seizures

 

	2008	2009	% Change
Cannabis
Number of seizures	2,441	2,166	-11.3%
Volume seized, KG	3,655	3,443.1	-5.8%
Value seized	€27,900,000	€30,200,000	8.2%
Cocaine and heroin
Number of seizures	76	39	-48.7%
Volume seized, KG	1,615	33.1	-98.0%
Value seized	€517,200,000	€2,300,000	-99.6%
Amphetamines, Ecstasy and other
Number of seizures	4,118	5,983	45.3%
Volume seized, KG	115	405.8	252.9%
Value seized	€2,300,000	€6,300,000	173.9%

The 2008 figures include a €500 million cocaine seizure off the coast of West Cork.

Tobacco Seizures

Last year was hectic as far as tobacco seizures are concerned!

	2008	2009	% Change
Cigarettes
Number of seizures	10,143	10,600	4.5%
Volume seized	134,800,000	218,500,000	62.1%
Value seized	€54,300,000	€92,100,000	69.6%
Tobacco
Number of seizures	1,094	1,171	7.0%
Volume seized – KG	2,965.0	10,451.0	252.5%
Value seized	€1,000,000	€3,700,000	270.0%

 

The Revenue Commissioners also made 34 seizures in 2009 of suspected criminal cash amounting to €1.35 million.