Lawyers to tap tax cheats for €400m

SIX firms of private solicitors are expected to recover close to €400 million in unpaid taxes for the Revenue Commissioners as a result of contracts signed yesterday.

The Revenue has re-appointed six firms of solicitors to support recovery of unpaid taxes through the courts.

In 2004 a total of 6,723 cases were referred to the six firms, resulting in the payments of €65.9m to the revenue.

It is expected the firms will process 7,000 cases this year and close to 45,000 cases over the six years of the contracts, bringing in close to €400m for the exchequer.

Speaking at the signing of the contracts in Limerick, Revenue Commissioner Josephine Feehily said: “Revenue has made great progress in recent years in improving tax collection. The level of tax debt has been very substantially reduced, and timely compliance has improved.

“However there still are those who continue to attempt to avoid their tax compliance obligations. We are determined, especially in the interests of fairness to the vast majority of our customers who are fully compliant, to vigorously pursue those non-compliers. The signing of these contracts is a further indication of our commitment to take firm action against defaulters.”

The six firms will represent the Revenue in cases where it is necessary to pursue tax payments through the legal system.

The Revenue said it is anticipated that as many as 7,000 cases per annum will be sent to these firms for enforcement. This is in addition to approximately 35,000 cases referred annually for collection by revenue sheriffs.

The firms, who first won contracts in 1999, are: Holmes O’Malley Sexton, Limerick; Ivor Fitzpatrick & Co, Dublin; George V Maloney & Co, Cavan; Mason Hayes & Curran, Dublin; Matheson Ormsby Prentice, Dublin and Pierse & Fitzgibbon, Listowel.

The Revenue Commissioners said the firms were selected following a competitive tendering process, adding that the new contracts will run for a period of six years.

The activities performed by these firms on behalf of Revenue will include obtaining and registering judgements; the use of judgement mortgages and, if necessary, the forced sale of property; applications for court instalment orders and the enforcement of such orders and bankruptcy or liquidation of the most intransigent defaulters.