The Revenue Commissioners are undertaking a special project designed to combat what are believed to be high levels of tax evasion and non-compliance in the construction industry, the Republic's biggest employer, with over 300,000 workers. Barry O'Halloran reports.

The Revenue intends to devote about 25 per cent of its complete auditing resources to the building industry this year, and the project will be co-ordinated on a national basis.

Last November the Dáil Public Accounts Committee heard from Revenue Commissioners chairman Frank Daly that audits were detecting high levels of evasion in the building industry.

For example, the Revenue was pursuing €38-€44 million due in relevant contracts tax since 2000, while there were problems with incomplete returns and companies failing to file returns.

Routine audits have also thrown up evidence of non-compliance. A Revenue spokeswoman yesterday said that in 2004 the tax authorities carried out 16,321 audits, which yielded a total of €550 million. Of this, over €57 million came from the building industry.

Last year, Revenue carried out 14,214 audits, which yielded €525 million. While the figures have not been finalised, around 20 per cent of that money came from the construction sector.

More than 1,000 tax advisers working for the building industry turned up at centres around the State last week to hear about the Revenue Commissioners' plans to target the sector.

The Irish Taxation Institute organised evenings in Athlone, Cork, Dublin and Kilkenny where Revenue officials outlined what they will be looking for when they begin site visits and audits of building companies this year.

The information sessions were the first of their kind and attracted hundreds of advisers. Estimates of the numbers that turned up at Croke Park conference centre in Dublin, which drew the biggest crowd, run to 700. A Revenue Commissioners spokesman said that "hundreds" turned up to all four events, and the final calculation of the numbers that turned up stands at well over 1,000.

He said the construction industry project will consist of site visits, audits and other means of detection. These will be supported by updated IT systems and programmes. Depending on the outcome this year, the Revenue may carry the project into 2007.