A chara, - Sifting through the detail of the report of the Comptroller and Auditor General provides some interesting insights into the priorities of our supposedly just and democratic society. Thus, some 2,500 prosecutions were brought by the Department of Social Welfare in relation to social welfare fraud between 1985 and 1996. Every prosecution brought in the last four years resulted in a conviction. Last year, the average fraudulent overpayment amounted to £1,300.
Between 1995 and 1996, the Revenue Commissioners carried out 234 investigations of tax returns: over half of these revealed underpayments averaging £154,000 each. No prosecutions were brought by the Revenue Commissioners in respect of these cases.
Is it any wonder that understatement of tax liability appears to be routine in the self-employed and corporate sectors? Last year, three-quarters of audits carried out by the Revenue Commissioners on income and corporation tax returns showed additional tax was due. It is clear that, in the absence of effective deterrents, tax evasion is rampant in this country and involves large sums of money which would otherwise be available for investment in our schools, hospitals and roads.
Recent events help us to understand why some of our political leaders may not have been inclined to encourage energetic policing of tax evasion by the Revenue Commissioners. However, a modern democracy owes it to its citizens to treat all those who cheat the State equally. More importantly, it should ensure that the majority PAYE sector, which has no option but to pay its taxes, does not bear a disproportionate share of the tax burden because of the fraudulent behaviour of others. - Is mise.
Proinnsias Breathnach,
Ma Nuad, Co Chill Dara.