The Revenue Commissioners expects to refer outstanding tax debts of £60 million (€76.18 million) to six firms of solicitors who will pursue defaulters in the courts next year.
In what it described as a "significant expansion" of its capacity to recover taxes owed to the State by companies and the self-employed, the Revenue plans to pursue some 6,000 cases in this manner. "We will be insisting that the defaulter pays the costs of all legal proceedings in addition to the full tax and interest due," said the Revenue Commissioners chairman, Mr Dermot Quigley.
While no figure is available for similar cases taken this year, the Revenue secured payment of some £14.7 million in outstanding tax in 1998, when it referred 3,588 cases to two firms of solicitors.
Asked why it is was now expecting to pursue debts of £60 million in this manner - an amount more than four times greater than in 1998 - a spokesman said the Revenue was emphasising "early action". "There was an element that we could improve our operations here," he said.
The Revenue said the appointment of six firms of solicitors would "considerably enhance" the range and effectiveness of its operations, enabling it to take a more determined approach. When referred to a case, the solicitors will advise the Revenue on the most appropriate enforcement action to take to secure payment. These will include the publication of judgements, bankruptcy proceedings and the forced sale of assets.
The solicitors, described by the Revenue as having expertise in debt-collection and enforcement proceedings, were appointed following a tendering process begun last December. Applications were received from 46 firms.
Yesterday, contracts were signed with Dublin firms Ivor Fitzpatrick and Company; Mason, Hayes and Curran; and Matheson Ormsby Prentice. Contracts were also signed with Co Limerick firm Holmes O'Malley Sexton; Co Cavan firm George V. Maloney and Co; and Co Kerry firm Pierse and Fitzgibbon.
In redeveloping its operations in recent years, the Revenue has invested several million pounds in technology and cleaned up its accounting records.
