Underestimates:The comptroller queried why the Department of Finance underestimated tax revenues in its forecasts for each of the past three years.
Mr Purcell noted that revenues were 9.3 per cent ahead of target in 2006; 4.7 per cent ahead in 2005; and 6.5 per cent ahead in 2004. This followed shortfalls in revenue against the targets for 2001 and 2002.
The department told him that revenues were close to target in 2004 and 2005 when concentrating on the main tax heads - VAT, income and corporation tax and excise duty. This excluded receipts from special investigations.
In 2006, 54 per cent of the overall excess came from stamp duties and capital gains tax.
A corporation tax surplus of €653 million was due in part to unexpectedly high payments from a small number of large companies and to new companies paying significant amounts of tax for the first time.
The report said a special group has met five times this year to examine ways of improving revenue forecasts.
The group has examined the existing approach to forecasting and the revision of forecasts based on the most up-to-date information available.
