Revenue Appoints Six Firms of Solicitors to Recover Tax
Revenue has today, (30 September 2009), appointed six firms of solicitors to support the recovery of unpaid tax, interest and penalties through the courts. The firms are:
- Holmes O'Malley Sexton, Limerick
- Ivor Fitzpatrick & Co., Dublin
- Lavelle Coleman, Dublin
- Mason Hayes & Curran, Dublin
- Matheson Ormsby Prentice, Dublin
- Pierse & Fitzgibbon, Listowel
These firms will represent Revenue in cases where it is necessary to pursue the recovery of tax, interest and penalties through the legal system. The work will involve debt collection proceedings in the District, Circuit and High Courts and will cover
- obtaining and registering judgements
- putting in place of mortgages on property and, if necessary the forced sale of property
- applications for Court instalment orders and the enforcement of such orders
- bankruptcy or liquidation of the most intransigent defaulters
The firms were selected following a competitive tendering process undertaken by Revenue. The new contracts will run for a period of six years starting on 1 January 2010. The appointment of these firms underpins Revenue's commitment to vigorously tackling tax non-compliance.
It is anticipated that up to 7,000 cases per annum will be sent to these firms for enforcement during the course of the contracts. This is in addition to approximately 44,000 cases referred annually for collection by Revenue Sheriffs. This is the third occasion in the last ten years that the Revenue Commissioners have gone to the marketplace for the provision of these debt collection services, the current contract expiring in December next.
Michael O'Grady, Revenue Commissioner, speaking at the signing of the contracts in Limerick today, said:
"Revenue has made significant progress in recent years in improving tax compliance and we are determined, notwithstanding the difficult economic climate, to maintain those hard-won compliance rates. A delay in tax collection obviously has a negative impact on the level and timeliness of the financial resources available to Government. But collection delays can also facilitate those who, by withholding tax payments and using those monies to improve cash flow, attempt to gain an unfair advantage over those who are timely compliant. The signing of these contracts is a further indication of our on-going commitment to take quick and firm action against defaulters when there is no realistic engagement with Revenue to discharge due tax liabilities."
The Collector-General, Gerry Harrahill, speaking after the signing of the contracts with the six firms reiterated the importance of early engagement by business with Revenue where tax payment difficulties arise
"Where a business is experiencing tax payment difficulties, we have always said that the most important thing is to recognise this at the earliest possible stage and to come and talk to Revenue. We are not in the position, nor could we be expected to be in the position, of saying you can forget about your tax obligations. You still need to pay them. But if you talk to Revenue at an early stage, we will try to work with you and find a mutually acceptable way of working through what, in many instances, is a short-term difficulty", he said.
The signing of these contracts today ensures that Revenue is positioned to deploy the appropriate collection and recovery measures needed where the timely engagement by business referred to is not forthcoming. In 2008 a total of 6,578 cases were referred to solicitors and payments of €65.1 million were received by Revenue.
[Ends 30/09/2009]