Dáil Éireann Debate, Tuesday - 7 July 2026
245. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the estimated annual loss to the Exchequer arising from VAT fraud, including missing trader intra-community fraud and carousel fraud, in each of the years 2021 to 2025; whether the Revenue Commissioners maintain any estimate of VAT fraud linked to shell companies established in the State; and if he will make a statement on the matter. [51046/26]
View answer246. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of Revenue Commissioners investigations into suspected VAT fraud involving shell companies in each of the years 2021 to 2025 and to date in 2026. [51047/26]
View answerI propose to take Questions Nos. 245 and 246 together.
I am advised by Revenue that it is not possible to provide statistics on investigations categorised by reference to "shell companies" or by specific fraud typology such as missing trader intra-community (MTIC) or carousel fraud. By way of explanation, I am advised that all Revenue compliance interventions are carried out under Revenue’s Compliance Intervention Framework (CIF) which takes a graduated response to risk based on taxpayer behaviour. Level 1 compliance interventions are aimed at supporting taxpayers by reminding them of their obligations and providing them with the opportunity to correct errors. Level 2 compliance interventions, carried out as either Audits or Risk Reviews, are risk-based reviews of information provided by taxpayers in their tax returns. Level 3 Investigations are focused on tackling high risk practices and cases displaying risks of suspected fraud and tax evasion.
Compliance interventions conducted under the CIF may encompass multiple tax heads and fraud indicators simultaneously. Therefore, it is not possible to provide a breakdown of compliance interventions relating to suspected VAT fraud involving shell companies in the manner requested. While a breakdown specific to shell companies is not available, Revenue has provided the total number of compliance interventions closed in the years 2021 – 2025 and in 2026 to date where VAT was within the scope of the intervention. Interventions included in these figures are at all levels of the CIF.
|
Year |
Number of Interventions Closed |
|
2021 |
24,052 |
|
2022 |
23,910 |
|
2023 |
25,025 |
|
2024 |
24,953 |
|
2025 |
26,739 |
|
2026 |
13,515 ( as of 30 June) |
Further, Revenue actively investigates serious and systemic tax fraud including VAT fraud and pursues indictable prosecutions through the criminal justice system. These measures serve as a critical deterrent against tax evasion including VAT fraud. The table below outlines the number of indictable prosecutions secured by Revenue for 2021 to the end June 2026, which include cases of VAT fraud:
|
Year |
Number of Indictable Cases |
|
2021 |
9 |
|
2022 |
9 |
|
2023 |
21 |
|
2024 |
20 |
|
2025 |
15 |
|
2026 |
8 (as of 30 June) |
I am advised by Revenue that while it does not report on an estimate of annual loss to the Exchequer arising from VAT fraud, including missing trader intra-community fraud and carousel fraud, it takes a comprehensive, risk-based approach to tackling VAT fraud, including MTIC and carousel fraud. Revenue actively participates in Eurofisc, an EU-wide, decentralised network established for the rapid, multilateral exchange of targeted data to combat cross-border VAT fraud. Through this network, Revenue collaborates with other EU Member States using early warning mechanisms to share immediate intelligence on fraudulent trading trends, carousel schemes, and missing trader networks. This information is integrated into Revenue’s domestic data analytics platforms, enabling designated liaison officials to quickly identify, disrupt, and dismantle fraudulent networks, including those involving entities with no genuine economic substance.
