White collar sector targeted as Revenue gathers €80m

More than €80m has been collected by a dedicated Revenue operation targeting the black economy.

The money has been gathered in the first eight months of the year and involved covert surveillance on businesses, cold-calling, and local blitzes.

White-collar cash businesses, such as doctors, dentists, and accountants, coughed up €16.5m in undeclared income, while landlords renting out properties have been hit for €21m.

The Shadow Economy Project targets those sectors which Revenue said have “traditionally been susceptible to shadow activity”.

“Revenue devotes considerable resources to counteracting this kind of activity, with a particular focus on sectors where cash transactions predominate, from retail, hospitality, and entertainment businesses to doctors, dentists, veterinarians, accountants, and those involved in the construction sector,” said a Revenue spokeswoman.

“We used a wide range of compliance initiatives, including covert surveillance, cold calls, third party information and localised blitzes to identify non-compliant businesses which were then requested or, where necessary, compelled to regularise their tax and duty affairs.”

She said they cooperated with the Department of Social Protection and the National Employment Rights Authority to tackle tax and social welfare fraud and protect employment rights.

“Shadow economy activity is often carried out by people and businesses already in the tax system and can occur across a range of economic sectors. It can range from businesses, including professions, understating their sales/income, under-declaring cash payments or paying their employees off the books, to individuals doing ‘nixers’ either in addition to their normal taxed employment or while also claiming Department of Social Protection payments.”

A breakdown of the €81.6m gathered shows:

- Cash businesses: €18m;

- White collar: €16.5m;

- Construction: €17m;

- Rental: €21m;

- Couriers: €2m;

- Security industry: €5m;

- Solid fuel industry: €700,000;

- Jewellers/cash for gold: €55,000;

- Scrap metal: €220,000;

- Nursing homes: €730,000;

- Garages/forecourts: €460,000