The office of the Revenue Commissioners is to clamp down on Irish owners of foreign properties and has already identified thousands of them, it emerged today.
As it published its annual report, Revenue Chairwoman Josephine Feehily warned that her office had already identified more than 2,000 Irish owners of oversees properties via foreign tax administrations, advertisements and websites, foreign land registries, and payments into bank accounts.
New powers could also compel estate agents to hand over details of Irish people renting out properties abroad, she said.
She said Revenue had developed a sophisticated Risk Analysis and Profiling system (REAP) which is “coming into its own as it is increasingly populated with Revenue data and 3rd party data.
“For example Reap already includes information on property transactions and next month will include data received under the EU Savings Directive. The corollary of better targeting is that most of the time we hope to be able to leave compliant taxpayers alone.”
She said Revenue would this year would also pay particular attention to cash businesses.
The annual report found the number of audits carried out by the office increased by a third last year, yielding some €734 million.
Ms Feehily said Revenue had net receipts last year of over €47.5 billion - nearly €2 billion up on 2006.
Revenue collected some €66 billion in taxes, duties, PRSI and levies, and repaid more than €18.5 billion to taxpayers.
Tax arrears as a proportion of total gross receipts stood at 1.9 per cent, which is “one of the lowest rates of any tax administration worldwide”, it said.
But for the first time in five years, the receipts were below the Budget estimate. The 2007 deficit was €1.7 billion, Ms Feehily said.
Special investigations into various industries and schemes, including insurance premiums, yielded €132 million in 2007. Over €30 million of that figure related to investigation into single-premium insurance products. A further €54 million was yielded as part of the offshore assets investigations.
In 2007, there were 14 convictions for serious tax and duty evasion, 1,263 convictions for non-filing of tax returns and a further 500 summary convictions for various customs, excise and vehicle registration tax offences.
Some 251,934 audits and assurance checks yielded €734 million, an increase of 33 per cent on 2006.
Investigations in the construction sector pulled in a further €151.4 million in tax, interest and penalties.
Revenue also said there was strong growth in the number of transactions conducted through its Revenue Online Service (ROS).
Revenue said one of the most significant developments last year was the initiative announced in the Budget to help taxpayers claim their credits.
Medical expenses claims went up by 19 per cent and Revenue repaid nearly €59 million. Some 52,000 tax refunds worth €12 million were made directly to people in the drugs payment scheme.
Illegal drugs with an estimated street value of almost €139 million were seized and €494,000 of suspected criminal cash was detained, Revenue said. A total of 74.5 million cigarettes and 1,516 kg of tobacco, worth €25.6 million and €433,000 respectively, were seized by the Customs Service.