Speaking at the launch, Ms Feehily said:

“Overall I would say last year was a year of really solid performance in challenging circumstances. We can report positive results in virtually all our business areas, good productivity, and some very interesting and innovative projects as well.

While overall tax and duty receipts were €831 million below the Budget target, net tax and duty receipts in 2011 increased by 7.3% to €34.2 billion, reversing three years of falling returns to the Exchequer.

Perhaps more significantly from Revenue’s point of view, is the fact that the level of outstanding tax debt stabilised in 2011 and is now beginning to decrease. The overall debt reduced from €2.08 billion in 2010 to €1.99 billion in 2011. The debt available for collection also fell by almost 5.2% to €1.32 billion in 2011. This is an extremely important performance indicator for us in Revenue and to achieve it, we increased the staff resources deployed on debt collection and recovery by 11.5% in 2011.

………Last year we increased the level of our audit and assurance activity by almost 20% with the resulting yield increasing by nearly €30m. We carried out 11,000 audits and 546,000 assurance checks which between them yielded more than €520 million. Included in these numbers are the results of a particular focus on shadow economy activity in certain sectors:

• Construction: 1,833 audits yielding €58.8m
• Bars and restaurants: 613 audits yielding €16.9m
• Legal activities: 142 audits yielding €4.6m
• Landlords/rental properties: 908 audits yielding €35.1m
• Professionals (accountants, doctors, dentists): 350 audits yielding €8.9m.

……….Shadow economy activity also includes evading excise of duty on diesel. In 2011, we completely revised our strategy in relation to how we confront the risks in this sector. We tightened the regulations for licensed mineral oil traders to strengthen the control and supervision of the supply and distribution of diesel and we followed up by vigorous enforcement action against unlicensed outlets and those in breach of the licensing conditions, resulting in the closure of 32 filling stations between July and December. A further 11 stations were closed to date this year.

At the same time we seized over one million litres of mineral oil and detected nine oil laundries. Already this year we have seized over 270,000 litres of mineral oil and detected three oil laundries including one mobile laundry. …….When businesses evade excise duty on oil, they are also likely to be evading other taxes. For this reason we are devoting 10% of our compliance effort to the oils sector generally in 2012. But motorists can help too. I would like to remind them of the risks to their vehicles from laundered fuel. They should also be aware that it robs millions of euro of much needed funds from the State, hurts legitimate trade and is bringing criminality into our communities.

………. One of our most significant innovations last year, was a Real Time Risk framework for PAYE which went live in July 2011 and by the end of December about 3,200 transactions were successfully stopped resulting in savings of approximately €1m. By now, that figure has increased to €1.87m and 5,178 transactions. This project, which uses advanced analytics to devise risk rules, puts us at the leading edge of managing risk, ahead of most other tax administrations in the world and we are extending the project this year to include VAT repayment claims.

……… This year is likely to be just as challenging as last year, but I want to conclude by paying tribute to the staff of Revenue without whose hard work and support I would have little to report today, and who I am confident will continue to service the community with dedication and distinction.”

Many families who decided to bite the bullet and pay the household charge have been hit with late-payment fines and interest penalties of almost €300,000.

This is because they failed to pay the €100 charge by the March 31 deadline and were forced to stump up an additional €10 late-payment fee and €1 interest payment.

A total of 890,184 homeowners have registered to pay the charge, figures from the Local Government Management Agency show.

Some 648,739 have paid the tax in full, with just over 27,000 paying since March 31, meaning they were liable for late-payment fees.

Homeowners who pay no later than six months after the due date are hit with a 10pc late-payment fee. This rises to 20pc after six months and 30pc after a year. An additional interest penalty of 1pc is added per month it is unpaid.

Penalties

So far, €297,242 has been paid in penalties, but the figure is expected to increase as postal applications are processed.

Some 153,000 payments have been made by post, and another 74,000 payments to local authority offices, which have yet to be processed. And 14,445 applications have been made for a waiver.

The charge is intended to replace Exchequer funding to local authorities. Some 1.6 million houses are liable for the charge, which was supposed to yield €160m to be given to city and county councils to fund essential services.

However, the collection rate is just over 55pc, which means that local authorities will be hit with a shortfall in funding.

Last week, Environment Minister Phil Hogan suggested he would “incentivise” local authorities that “pull out all the stops” to collect the charge by giving them a greater allocation of the money generated.

Not until all applications are processed will enforcement action begin against homeowners who refuse to pay, the Department of the Environment said yesterday.

The Institute has delivered a comprehensive submission to the Inter-Departmental Expert Group set up to consider proposals for a property tax. Our submission concentrated on the administrative and collections issues associated with the proposed tax, and our comments included the following:

• A comprehensive property register must be the essential foundation of the tax in the medium to long term.
• Householders should be offered a range of options in terms of both when to pay and how to pay.
• A significant advance publicity campaign will be necessary to inform householders about the tax.
• The separate NPPR charge should be discontinued.
• Any property tax should be deductible in computing rental profits.
• Some form of credit against the tax should be permitted for people who have paid stamp duty on the purchase of their property since 2004.
• A robust appeals process should be an essential element of the infrastructure surrounding the tax.

The Group is due to report to the Minister for the Environment, Community and Local Government by the end of April.

The following chart gives details of the main personal tax credits for the tax years 2011 and 2012

* Relief in respect of the cost of maintaining a guide dog (max €825) may be claimed under the heading of Health Expenses.

** Relief for Employing a Carer (2011 and 2012) is allowable at the individual’s highest rate of tax, i.e. 20% or 41%.

The “Golden Eagiie” brand cigarettes, which originated in Vietnam and arrived into Dublin Port via Rotterdam, were described as ‘wood briquettes’ on the manifest and were consigned to an Irish-based company. Approximately 9.5m cigarettes were seized from each of the four containers which travelled on one Bill of Lading.

The containers were selected for x-ray scan based on risk profiling conducted by Customs. The scans showed an anomaly in the contents of the containers, resulting in further inspection. Boxes of wood pellets were used as the cover load.

Revenue Commissioner Liam Irwin said

“This seizure, which was the result of profiling by Revenue’s Customs Service, is a significant blow to the criminals involved in this illicit trade. Tobacco smuggling is organised fraud on a global scale – it brings criminality into our communities and robs millions of euro from the State each year.”

Several individuals were interviewed and a premises was searched under warrant. Documents seized as part of the investigation are currently being examined.

Investigations are ongoing nationally and internationally.

If businesses or members of the public have any information regarding the smuggling or sale of illegal cigarettes, they can contact Revenue in confidence on free phone number 1800 295 295.

Historically group thresholds were indexed by reference to the Consumer Price Index.

Section 109 Finance Act 2012 amends Schedule 2 of the Capital Acquisitions Tax Consolidation Act 2003. The amendment reduces the Group A tax-free threshold from €332,084 to €250,000 and rounds up the Group B and C tax-free thresholds from €33,204 and €16,602 to €33,500 and €16,750 respectively and abolishes the indexation of the tax-free group thresholds. The amendment applies to gifts and inheritances taken on or after 7 December 2011.

Under the Finance Act 2011 the indexation factor for 2010, will continue to apply to gifts and inheritances taken on or after 8 December 2010 to 6 December 2012. The indexation factor for 2010 (1 January 2009 to 31 December 2009 inclusive) was 1.361.

*In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold.

Today, Revenue announced an extension to the return filing and tax payment date for certain self-assessment income tax customers and for customers liable to Capital Acquisitions Tax [CAT].

For customers who file the 2011 Form 11 return and make the appropriate payment through ROS for:

• Preliminary Tax for 2012,
• Income Tax balance due for 2011,

the due date is extended to Thursday, 15th November 2012.

For beneficiaries who received gifts or inheritances with valuation dates in the year ended 31 August 2012 who make a CAT return and the appropriate payment through ROS, the due date is also extended to Thursday, 15th November 2012.

To qualify for the extension, customers must both pay and file through ROS. Where only one of these actions is completed through ROS, the extension does not apply and the date for the CAT return or the Form 11 return and payment is 31 October 2012.

Revenue eBrief 19/12 has clarified some aspects of the changes to the discretionary trust tax regime introduced under Finance Act 2012. These changes were predominantly introduced to reverse the decision in the Irvine case in relation to the administration of estates but also extend to all benefits taken under a Will that are discretionary and not just those passing as part of the residue of an estate. Further details of this can be found in our article attached, to be published in the Law Society Gazette June 2012 issue.