Revenue collected a total of €50.76 billion in taxes, duties and levies last year, an increase of over €2.8 billion on 2016 and the seventh annual increase in a row.

Taxes on income were up 4% last year, while VAT rose by 7% and Corporation tax increased by 11%, Revenue's annual report shows.

Revenue also said it was seeing compliance rates of over 90% across all taxes.

It said the yield from audit and compliance interventions last year amounted to €491.9m.

Niall Cody, Revenue Chairman, said his office had seen a 13% reduction in debt available for collection,

Mr Cody said that Revenue intervenes early when tax payment and filing obligations are not met and it has facilitated over 10,000 taxpayers, who had temporary payment problems, with instalment arrangements worth €94m.

Last year also saw Revenue collect €212.4m in over 37,000 debt enforcement cases.

"The small minority who either refuse to engage with us or refuse to pay their tax are met with determined enforcement and collection action, and the additional cost of that action," Mr Cody stated.

On its action against drugs, fiscal fraud and smuggling, Revenue seized €81m worth of illegal drugs, alcohol and tobacco products last year.

Looking ahead, Mr Cody said that modernising the PAYE system is Revenue's priority for 2018.

The new Pay As You Earn (PAYE) tax system will see the traditional P60 and P45 forms abandoned. 

The new PAYE system will be introduced on 1 January, 2019. 

Niall Cody said the move to real time PAYE represents an important step in the process of continuous improvement in service, compliance and efficiency in the administration of the tax system.

For employees it will mean greater transparency regarding how much tax they have paid.

P45, P60, P35 and P30 forms will no longer be required.