The Revenue Commissioners annual report shows it seized 70 million cigarettes in 1999 and a further 70 million in the six months to the end of June last. The chairman, Mr Dermot Quigley, said the cigarettes were all destroyed under strict supervision.

The Revenue investigation into the "pick-me-up" scheme used to make donations to political parties continued in 1999 and resulted in the collection of £350,000 (€444,410). Under the scheme a bill incurred by a political party for goods or services was "picked up" by a company wishing to support the party.

The Revenue has put forward proposals for its restructuring to ensure a more efficient tax administration system. Following advice from international consultants, it suggests the organisation should be restructured to include a larger customer division and the creation of five new regional divisions to deal with all taxpayers' affairs. The Revenue also proposes a new prosecutions division to speed up cases of serious tax evasion.

The Revenue has become more proactive in initiating criminal prosecutions in cases of serious tax evasion. The annual report shows it selected 13 cases last year. Two were investigated by the gardai and, with Revenue assistance, were finalised in court. In one case, a meat processing company was convicted of submitting false PAYE/PRSI returns. It was fined £15,000 on pleading guilty in the Circuit Criminal Court. A further £3.3 million in tax, interest and penalties was subsequently recovered from the company. In the second case, two individuals were charged with tax offences but were acquitted. A further four cases were brought to court in 1999 with 24 others at various stages of investigation at the end of the year.