Revenue gets €1.4m system to detect tax evaders

Tax evaders have a new enemy to contend with at Revenue. Tax officials will now use a new "Big Brother" type computerised system to identify automatically individuals and firms most likely to evade tax. The €1.4 million system will, in time, be capable of running a risk assessment on every single tax return lodged with Revenue every year.

Bull Information Systems, which provides the software, claims the system can increase collection of unpaid taxes by 10-20 per cent.

Currently Irish tax officials use a set of undisclosed standard risk assessment techniques to identify tax returns which may be less than truthful.

And once a suspect is identified returns are closely scrutinised for errors or frauds.

But from the beginning of next year the new Eskort software system will run a fast risk-assessment programme on all returns and likely tax evaders will be identified on a uniform basis much more easily and quickly.

It means the Revenue will have more time to investigate suspected tax evaders rather than spending time poring over tax returns trying to identify evaders as is currently the case.

Revenue chairman Mr Frank Daly yesterday signed a contract with Bull Information Systems under which the firm will provide the state-of-the-art software which will enable Revenue to spot "higher risk cases for audit and investigation".

The system will be used to "compare and interrogate" data held in the Revenue's computer systems and will "generate profiles of likely tax evaders".

"Over time Revenue intends to be in a position to screen all tax returns electronically by devising and applying certain 'rules' which indicate risk using all available informations," said a Revenue statement yesterday.

The rules will be changed or adapted based on experience and audit results.

Mr Daly said Revenue was determine to use every means at its disposal to identify tax evasion.

"Computerised risk analysis and profiling will help us greatly to home in on those people who pose the highest risk," he said.

"This new electronic analysis system is a demonstration of our ongoing commitment to confronting tax evasion in all its forms."

A spokesman for Revenue said the Eskort system was currently in use in several countries around the world and enjoyed considerable success. He said Bull Information had been chosen to provide the software after a lengthy tendering process had prompted submissions from a number of international software companies.