Taxi drivers facing Tax audits

dublin | public consultation / irish social forum | news report

Saturday April 22, 2006 16:28

by Liam Mullen - Freelance Journalist

A revenue source has claimed that hundreds of taxi drivers are deserting their jobs, rather than submit to rigorous audit checks being carried out by the Department of Revenue. Rogue drivers have been amassing undeclared income, and under new tax clearance rules established by the regulator when the industry was deregulated, many are falling prey to the new tightening of regulations.

A revenue source has claimed that hundreds of taxi drivers are deserting their jobs, rather than submit to rigorous audit checks being carried out by the Department of Revenue. Rogue drivers have been amassing undeclared income, and under new tax clearance rules established by the regulator when the industry was deregulated, many are falling prey to the new tightening of regulations.
An industry insider has declared: “That many drivers are falling foul of the new rules and are unable to renew their PSV licences” without proper clearance from the tax authorities. The industry was deregulated in November 2000, and since then the numbers of taxis plying their trade on Irish roads has increased dramatically.
The Commission for Taxi Regulation was given sweeping new powers in September 2005, under the Taxi Regulation Act 2003 to implement major reforms of the taxi, hackney and limousine services operating within Ireland. It’s action plan ‘Driving Forward’ proposes that no vehicles over 9 years old will operate as a public service vehicle, it proposes a new standardised nationwide fare, and a maximum fare structure that will end the current practice of going off the meter.
Some rogue drivers have claimed that their only income from operating taxis is 4,000 Euros per annum, but Revenue are beginning to crack down heavily on such outlandish claims. In many cases homes are being visited as part of an audit investigation, and rogue drivers are being encouraged to explain their outgoings: costs for groceries, school bills, home improvement costs, and other living expenses that wouldn’t support the claim that low earnings are being achieved.
To circumvent an audit of their tax affairs, many drivers in this position are not renewing their PSV licences, and ultimately are leaving the profession. In some ways they might think they are beating the system, but as the revenue spokesperson explained: “They are only fooling themselves. Ultimately if they go down this road, they’ll have lost their main source of income, and they will still be without their tax clearance certificates.”
This will have a bearing on all their future claims and tax entitlements.