TDs call for private tax debt collectors

The Revenue Commissioners should hire private debt collection agencies to pursue people who do not file tax returns, a Dáil committee has suggested.

The Committee of Public Accounts (Pac) report published yesterday shows that the number of people convicted of failing to file tax returns increased from just over 200 in 1997 to more than 1,000 a year between 1999 and 2000.

The report also shows that in cash terms, only €25 to €26 in every €100 imposed by the courts in fines for this offence is ever collected.

Around one-third of all fines are not collected.

Committee chairman Michael Noonan TD said it took up to one year for the Revenue Commissioners' systems to pick up someone who had not filed tax returns.

It could take a further two years before they receive summonses, he added, with another six months before the case reached the courts.

The report recommends that the Revenue's "prosecution strategy in relation to non-filers needs to continue to be actively managed to improve the effectiveness of its contribution to the overall compliance strategy".

Mr Noonan said the committee believed the commissioners should look at the possibility of using an external debt collection agency to collect the fines.

Fine collection is currently the responsibility of An Garda Síochána.

The report also reiterates the committee's call for the Revenue Commissioners to increase the number of prosecution for serious tax offences in order to demonstrate its determination to deal with tax evasion.

Committee member Pat Rabbitte TD pointed out yesterday that the Revenue saw itself primarily as a tax collector, and thus accepted settlements rather than going through the expense and time involved in lengthy prosecutions.

"It can be a considerable disincentive to some people to comply when they know they are not going to be prosecuted," he said.