Taxpayers and income tax evasion
Deasy asked how many people were liable for and paying income tax, and about revenue lost to evasion. Bruton estimated 780,000 people were paying in 1981/82, said the number evading tax could not be measured, and noted that special enquiry units had brought 15,000 people into the tax system; he clarified that 780,000 referred to taxpayers paying.
asked the Minister for Finance the number of people in the country, who are estimated to be liable to income tax; the actual number who are paying it; and the estimated loss to the Exchequer due to tax evasion.
Comment on this
The number of persons paying income tax in 1981/82 is estimated to be about 780,000. It is not possible to indicate the number of people who are liable to tax but are not paying it, because tax evasion is, of its very nature, a concealed area of activity. It may be mentioned, however, that 15,000 persons were brought within the taxation system as a result of the operations of the special enquiry units set up by the Revenue Commissioners in 1979 to seek out traders, professional persons and others not on record for tax purposes.
As regards the loss to the Exchequer due to tax evasion, it is not possible to indicate this amount but it is to be noted that, over the last 5 years, the cases dealt with by the investigation branch produced about £10 million. It is estimated that the yield from new cases brought into the tax net will produce £15 million over the next few years.
Comment on this
I was not quite clear on the matter initially and would like clarification. Was the figure of 780,000 the number liable for tax?