Revenue to target higher earners and landlords
Revenue is set to create a new division with 380 tax-collection specialists focused on ensuring compliance by people with incomes of €500,000 or more, or significant property and capital portfolios.
The creation of the new unit, which will also target medium-sized businesses, comes as part of a wider restructuring of the State’s tax collection agency, and follows a report from the Comptroller & Auditor General earlier this year, which found 90 of the wealthiest people in the country paid income tax at a lower rate than the average taxpayer.
Previously, Revenue operated a single large-cases division, as well as four geographically-based regions (Border-midlands-west region, Dublin, east-southeast, and southwest. It is now moving to a new structure that is based on the characteristics of taxpayers, rather than their geographical location. “This realigned structure will mean every taxpayer is now managed, from both a service and compliance standpoint, by one nationally-based division,” a spokesman for Revenue said.
This will see the creation of two new units focused on wealthy individuals. The first, a “high wealth individuals” (HWIs) division, will deal with individuals with a net worth of €50 million or more, as well as pensions and tax-avoidance issues. Sixty-four Revenue staff have transferred to this new unit, about 25 of which are focused solely on HWIs. Previously, HWIs were dealt with by the large-cases division.
High wealth’ unit
The second unit, known as “medium enterprise” will deal with those who don’t fall into the “high wealth” unit. The Revenue spokesman said the new division would deal with individuals with total income greater than €500,000, as well as those with “significant” capital or property transactions. The allocation of cases is still under review, and may be subject to “further refinement”.
It’s understood the new unit will have a workforce of 380 people by year end, and will monitor compliance through various risk-assessment programmes, supported by data analytics, interrogation of both taxpayer and third-party information, and an examination of specific wealth indicators.