The Revenue Commissioners collected almost €32 billion in tax receipts in 2010, down €1.3 billion on the previous year.

This level of tax receipts was last seen in 2003.

According to the Revenue's annual report, tax receipts for 2010 were 2 per cent ahead of Budget estimates, largely due to higher corporate tax receipts.

"Following two years during which the Irish economy contracted sharply, the indications at the end of 2010 were that the contraction, though ongoing, was moderating," Revenue chairwoman Josephine Feehily said.

"The scale of the retrenchment in fiscal terms, however, has been enormous."

More than 11,000 audits were carried out last year, yielding €434.7 million, while 454,796 assurance checks raised €58 million. The agency secured 13 court convictions for serious tax and duty evasion during the year, with fines amounting to €16,350 imposed.

The agency said the rate of "timely compliance" was firm last year, despite a "challenging" environment for businesses, with 97 per cent of the largest cases filed on time or nearly on time, and medium size cases at 94 per cent.

Officials have been targeting industries traditionally viewed as "cash" businesses, such as construction, the motor trade, hospitality and professionals such as doctors, dentists vets and solicitors.

Revenue officials also discovered a small number of individuals with undeclared funds in a Swiss bank, an ongoing investigation that has already yielded €2 million.

During the year, some 178.4 million cigarettes were seized, along with 3,367kg of tobacco, valued at €75.2 million and €1.2 million respectively.

More than €9 million worth of drugs were recovered by Revenue, while €1.7 million of suspected criminal cash was detained at ports and airports.