Tax evasion and social welfare fraud
Keating and Desmond argue that the Green Paper singles out social welfare fraud while omitting other forms of tax evasion, including employers’ insurance and tax obligations, and question the Government’s estimates and perspective. O’Donoghue says the paper is selective, denies bias, and notes that tax-evasion enforcement is the independent responsibility of the Revenue Commissioners; he provides no estimates for the other areas.
asked the Minister for Economic Planning and Development if, in the Government's efforts to achieve their objectives, it is intended to eliminate tax evasion and financial abuses generally, along with alleged social welfare fraud; and if he will indicate where this concern for equitable treatment is referred to in the Green Paper recently published; and if he will give estimates of the various sums of which the Exchequer is said to be defrauded under the foregoing headings.
Comment on this
: The purpose of the Green Paper is to put forward for consideration a range of options for future action to bridge the gap between the likely results of present policies and those required to attain the economic and social targets set out in the Government's White Paper on "National Development 1977-1980". The references to the action being taken to combat fraud in relation to certain social welfare services arise in the context of the general need to stringently control the costs of public services. The Green Paper does not purport to be exhaustive in detailing the actions taken or intensified to control the costs of public services and their financing. Estimates of the savings to the Exchequer from the operation of such measures or of the extent to which the Exchequer is said to be defrauded under the social welfare code are not readily available.
Comment on this
: Is it not strange that in this substantial section of the Green Paper there is no reference to the non-stamping of insurance cards by employers, the non-return of PAYE deductions, the non-payment of tax assessed, the non-return of VAT, and to the fraudulent submission——
Comment on this
: In view of the selective treatment given to Social Welfare fraud and the non-reference to other areas of fraud, would the Minister not agree that his paper can only be classified as being very much out of perspective?
Comment on this
: I assure the Deputy that there is no intention of being biased or discriminating either against or in favour of any one section of the community in measures to tighten up on tax evasion or fraud. Measures for dealing with tax evasion of the kind to which the Deputy refers are the responsibility of the Revenue Commissioners, who function independently. If the Deputy wants to table questions in that area, I suggest that he do so. It is only a few weeks since another Deputy from his party was complaining about hordes of revenue officials descending on a certain town and striking terror into the hearts of the traders in that town.
Comment on this
: In view of the reference by the Taoiseach to the £2 million worth of alleged and proven fraud within the Department of Social Welfare, would the Minister not agree that the weekly amount of money involved in, for example, the non-stamping of insurance cards is in excess of alleged fraud, even in relation to disability benefit; that that is the kind of lack of perspective which undermines the attempt at credibility within his own Green Paper; and that perhaps he should have consulted more extensively with the Minister for Health before reaching such sudden conclusions?
Comment on this
: I can only say that any discussion document has to be selective, otherwise you would have to write a very long document each time. If you are going to say everything about every subject, you would be publishing very thick documents indeed.
Comment on this
: Is that not the nature of the next document which the Minister intends to publish?
Comment on this
: If the Deputy wants to table a question about the forthcoming White Paper, I will answer it in due course.
Comment on this
: Deputies will have an opportunity to discuss this matter next week. Deputies should refrain from asking unnecessary supplementary questions.
Comment on this
: We know that a paper such as the Green Paper cannot be comprehensive, but does the Minister agree that the alleged social welfare abuse has been dealt with in a specific manner in the Green Paper and that his inability to supply estimates of fraud and tax evasion in other areas indicates that the Government are obsessed with this area, which is mainly working-class?
Comment on this
: I am not aware of any such obsession on the part of the Government as a whole or of any Member of it.
Comment on this
: Then why has the Minister not got figures for other areas of tax evasion and fraud?