Without prejudice to any other aspect of this material published last month, the plans contain a summary of how Revenue views the tax administration environment. The challenges identified include the growth of the shadow economy and an emphasis on compliance costs.

According to the documents:

“The dramatic reduction in our staffing numbers over the past year and the related loss of experience and corporate memory presents Revenue with a significant challenge as we face into a very demanding environment for Revenue – an environment where we expect:

1. Pressure on collection: Many businesses will continue to have tax payment difficulties. Maintaining timely tax payment rates and reducing debt, while supporting viable businesses, will continue to be a challenge.
2. Shadow economy: There are clear indications of shadow economy growth since the start of the economic slowdown. Apart from a general increase in cash transactions, areas of particular concern include drugs and tobacco smuggling.
3. Compliance costs: The more difficult environment for business will put increased focus on compliance costs.
4. Tax reform: Stabilising the public finances is likely to involve changes to the tax system and implementation challenges for Revenue. EU tax and customs reform proposals are likely to feature prominently
5. Growth in online transactions: will significantly change the way taxpayers interact with Revenue with consequent implications for staff deployment.
6. Flexibility and productivity: Real and measurable flexibility and productivity improvements will be required to meet the challenges ahead, particularly in freeing up resources to tackle non-compliance.
7. Accountability for performance: We can expect increased scrutiny of our performance as an organisation and as individuals, and an expectation that we demonstrate our effectiveness through evaluation and evidence-based methods.”

The full material is available at http://www.revenue.ie/en/about/publications/public-service-agreement-action-plans-2010-2014.html