State loses out on €100m in unpaid taxes

THE state lost out on more than €100 million in unpaid taxes so far this year as a result of companies going out of business who were unable to settle their revenue bills.

This is part of a total bill of €1.8 billion in unpaid tax owed to the state which has gathered over a number of years and is still “collectable” according to the spending watchdog, the Comptroller and Auditor General (C&AG).

The Revenue Commissioner yesterday admitted it has become more lenient on companies attempting to stay afloat in the current economic crisis. It has written off €151m in taxes owed by businesses up to September this year, including €100m in companies that go into liquidation – compared with €129m written off in the whole of 2008. The tax office is attempting to “strike a very fine balance” between enforcing compliance and ensuring businesses do not collapse under the pressure of tax bills, according to the Revenue’s accounting officer Josephine Feehily.