Tribunals ‘should not have an open chequebook’

Michael O’Farrell, Political Reporter

Up to the beginning of last month, the various tribunals have cost the exchequer E200 million a figure set to rise dramatically as rulings on legal costs are made.

However, the inquiries are not required to furnish the Dáil with any annual estimate of costs despite the huge sums of public money involved.

Launching a report into the Department of Finance, the Revenue Commissioners and the National Treasury Management Agency (NTMA) yesterday, PAC chairman Michael Noonan said it was unacceptable that tribunals were allowed operate on the basis of "an open chequebook".

Seán Fleming of Fianna Fáil said the committee felt the tribunals' terms of reference were defective since there was no provision for cost estimates to be provided annually.

"I would be satisfied there is at least 1 billion of legal fees that will be paid by the taxpayer...it's clear there is an enormous bill out there," he said.

In a series of hard-hitting recommendations, the PAC report also criticised the Revenue Commissioners for its low enforcement Rate.

According to the report, just 25 of every 100 in fines is actually collected while very few prosecutions of serious tax evaders are taken.

Calling for a private debt collection agency to collect fines instead of gardaí, Mr Noonan said offenders could ignore prosecutions and court-imposed fines because of the Revenue's lax approach.

"The collection of fines isn't effective and one in three fines are never collected. So you go all the way through the system and you never pay the fine at the end of the day," he said.

"There should be some form of private agency to collect Revenue fines to ensure that there is full enforcement.

"Self-assessment only works if people believe at the end of the day that the Revenue will ask them to pay."

Labour leader Pat Rabbitte also called on Revenue to use its powers to pursue tax Also yesterday, the PAC urged the Department of Community, Rural and Gaeltacht Affairs to make an attempt to recover a grant of £55,000 mistakenly paid to a company which does not operate within the Gaeltacht.

Mr Noonan said that while he was not suggesting legal action, it was unacceptable that no attempt be made to have the money returned.