The Revenue has reported another successful year, collecting £27.6 billion (#35 billion) for the Exchequer, some £1.5 billion ahead of Budget estimates. Presenting its annual report yesterday, Revenue chairman Mr Dermot Quigley said improved technology and strong economic growth had boosted the tax take in 2000 but there were signs that the rate of collection had slowed down this year.

"Tax collection is not as buoyant in 2001 as envisaged at Budget time, reflecting foot-and-mouth disease and weaker economic growth" he said.

The Department of Finance has signalled that end-of-year tax returns will be below official targets, with a shortfall of around £500 million forecast due to foot-and-mouth disease and a slump in new car sales.

"VAT and excise duties are significantly weaker this year but corporation tax remains in reasonable shape."

The 2000 tax take includes the collection of £173.3 million from 37 financial institutions in unpaid DIRT tax on bogus non-resident accounts. A further £22 million came from its ongoing investigation into the sale of an unauthorised investment scheme at National Irish Bank.

Mr Quigley stressed that the Revenue was working to reassure the public of its even-handed approach in applying the tax laws following damning revelations at the various inquiries and tribunals. A major internal reorganisation is under way to ensure shortcomings highlighted in the past cannot be repeated.

During 2000, the Revenue successfully prosecuted three cases of serious tax evasion, with four others before the courts at the end of the year. Two individuals were convicted of tax evasion following Revenue prosecutions and are now serving terms of imprisonment.

Mr Quigley pointed to the Revenue's tougher stance in terms of pursuing monies owed. At the end of last year, it had initiated proceedings to secure 14 bankruptcy declarations and a further 14 cases were taken to force property sales to meet outstanding tax debts.

Collections through sheriffs and solicitors yielded £83.1 million from some 21,000 cases.

The Revenue carried out 17,709 audits in 2000, yielding £309.8 million. Mr Quigley said its auditing operations would be boosted this year by additional staff, with more random audits planned in 2001 by its tax inspectors.

Its customs team was involved in seizing drugs with an estimated street value of £8.7 million and collected more than £400,000 of suspected drug-related cash. Some £96 million of smuggled cigarettes were seized by Customs.