Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank the Deputy for tabling the amendments. This is an issue to which the Minister and his officials have given considerable consideration because, as the Deputy said, different views have been expressed.The amendments indicate a concern about the holding of hearings on tax appeals in public and the Deputy has highlighted his intention to submit similar amendments on Report Stage. I want to flag our perspective on this issue and where we are coming from.

In Chapter 4 of Part 4 section 949Y provides for the default position of public hearings. This is subject to the right of a taxpayer to a private hearing on request to the appeal commissioners. It is also subject to the appeal commissioners' discretion on whether to hold a hearing or part of a hearing in private where they consider circumstances specified in subsection (2) of the new section 949Y of the Taxes Consolidation Act 1997 apply. These circumstances include, as the Deputy said, the need to maintain the confidentiality of sensitive information, to protect a person's right to respect for his or her private or family life and in the wider interests of justice and the public interest. The effect of the Deputy's amendments would be that all appeal hearings, without exception, would be held in public, with no allowance being made for appeal commissioners' discretion or the wider interests of justice and the public interest, as outlined. The Deputy is likely to change this on Report Stage.

The proposal in respect of public hearings was contained in Revenue's submission to the Minister during the public consultation on the reform of the tax appeal system. The reason given for the proposal was that it would ensure transparency and accountability and enhance public confidence in the tax system. The public would see that the tax system was being administered in an even-handed way by Revenue and subject to oversight by an independent and impartial tax appeal commission. Such a move would also be in line with best international practice and other Irish administrative fora in which public hearings are the norm.

Revenue also referred in its submission to the fundamental principle of law enshrined in the Constitution that court proceedings should be held in public. While justice must be done, it is also important that it be seen to be done. In this regard, the in camerarule in tax cases in the High Court and the Supreme Court was removed in the 1980s. While the appeal commissioners are an expert tribunal and not a court, it can be argued that the principle of public proceedings should also apply to them. The Minister was persuaded of the merits of these views and decided to legislate for a system of public hearings that would contain the necessary safeguards to ensure certain matters would not be in the public domain.

During the pre-legislative scrutiny of the Bill by the committee, conflicting views on the matter were expressed by various committee members and other parties. Support for the idea of public hearings was expressed by Deputy Pearse Doherty and also by Revenue and the appeal commissioners. Other parties, including the Irish Tax Institute and a number of members of this committee, expressed strong views against public hearings, citing such reasons as the reluctance of taxpayers to take an appeal if hearings were to be held in public and the impact on business of the release of commercially sensitive information. Ultimately, while allowing for the possibility of public hearings, the committee stated in its report to the Minister that it would prefer to give an appellant discretion about the choice of having a public or private hearing. The Minister's decision to accept the committee's recommendation was influenced by the strong views expressed at the committee's hearings. He sees the potential benefit of public hearings and would like to see the matter being kept under review as the new appeal system becomes established. At this time, therefore, he is not prepared to accept Deputy Pearse Doherty's amendment.