Additional tax payments of £149 million resulted from 20,786 Revenue audit programmes last year. Revenue audit programmes involve checks on the tax affairs of the self-employed and companies. The strategy is to put "more emphasis on larger cases", according to a statement, meaning that while the number of cases audited last year was slightly down on 1996, the tax yield from them rose by £6.6 million.

Meanwhile, 3,169 cases "not previously on record or with unreturned income" were identified through auditing activity, and there were 20 cases of "tax avoidance" resolved, which yielded £2.4 million.

The audit programme is a key element of Revenue's enforcement strategy, which also involves a new prosecution policy under which 21 tax evasion cases are now being investigated for criminal prosecution.

Over 60,000 cases were referred to the Revenue sheriffs, yielding £58 million, and £9.9 million was collected in 4,179 cases referred for solicitor action. There were 356 vehicles seized during the year for breach of Vehicle Registration Tax (VRT) regulations. A mobile service to enforce VRT, prevent smuggling and detect illegal use of rebated diesel was launched during the year.

The report states that over 700 "phoenix-syndrome" cases were identified, involving companies which close down with tax liabilities and re-open under a new name. Here the Revenue acted to recoup taxes owed and closely monitored the new companies

For Customs and Excise offences, there were 297 people prosecuted in 1997, compared to 267 in 1996, "due in the main to increased convictions for cigarette smuggling and illegal selling of cigarettes".

"The number of charges for smuggling was up 94 per cent on the previous year while convictions for selling offences increased by 655 per cent," the report states.