Revenue Commissioners defends ‘nonsense’ tax certificate system

THE Revenue Commissioners has defended tax clearance certificates as a way of vetting for tax compliance in the face of criticism that Fianna Fáil TD Michael Collins was able to get a cert while owing thousands in unpaid taxes.

Tax expert Des Peelo, accountant to former Taoiseach Charles Haughey, yesterday dismissed the certificates as "a bit of bureaucratic nonsense", but a Revenue spokesman later insisted: "They are a very important tool."

Mr Collins was required by the Standards in Public Office Act to produce a tax clearance cert within a month of his re-election to the Dáil in May last year and had to complete an application form to get one.

Revenue would not comment on an individual case but a spokesman pointed out that the commissioners only sent letters of inquiry to the first batch of 30,000 suspected holders of bogus non-resident account holders last October five months after the Oireachtas members' clearance certs were issued.

A further 40,000 people received letters in January this year and Revenue officers have spent the months since corresponding with all 70,000 and negotiating settlements where taxes were outstanding.

It was during these months that Mr Collins' liabilities were discovered. Up to then, Revenue were dependent on him making an honest declaration in his application form.

Mr Peelo told RTÉ radio the clearance system was flawed because there was no audit or investigation to ensure the details were complete and true.

He said anyone could get a cert as long as their basic tax returns and payments were up to date, which included people who owed money but had entered into an installment arrangement to clear their debt.

The revenue spokesman said it was not possible to investigate every application individually.