Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 84:

“Amendment of section 851A of Principal Act (confidentiality of taxpayer information)

69. Section 851A of the Principal Act is amended in subsection (1) by substituting the following for the definition of “professional body”:“ ‘professional body’ means—

(a) an accountancy body that comes within the supervisory remit of the Irish Auditing and Accounting Supervisory Authority,

(b) the Irish Auditing and Accounting Supervisory Authority,

(c) the Irish Taxation Institute, or

(d) the Law Society of Ireland;”.”.

Amendment No. 84 inserts a new section 69 into the Finance Bill to amend section 851A of the Taxes Consolidation Act 1997, which contains provisions relating to Revenue’s treatment of confidential taxpayer information. The purpose of this amendment is to allow Revenue to report unprofessional conduct by solicitors, in acting on behalf of taxpayers, to the Law Society so that the Law Society can carry out an investigation into the alleged misconduct.

Section 851A provides reassurance to taxpayers that personal and commercial information received by Revenue for tax purposes is protected against unauthorised disclosure. The authority to disclose taxpayer information requires a specific statutory basis and the use to which the disclosed information can be put by the recipient of the information is prescribed by statute.

One of the circumstances in which it is permitted to disclose confidential taxpayer information is where a Revenue officer is satisfied that the work of a tax adviser acting on behalf of a taxpayer does not meet the professional standards of the professional body of which the person is a member. Thus, for example, a Revenue officer may disclose taxpayer information to the Irish Taxation Institute so that the institute can investigate whether the alleged misbehaviour of one of its members has breached its professional standards.

Section 851A defines “professional body” as those accountancy bodies that come within the remit of the Irish Auditing and Accounting Supervisory Authority and the Irish Taxation Institute. This amendment includes the Law Society in the definition.

The current situation whereby Revenue can report unprofessional conduct by certain tax professionals but not solicitors is a source of grievance for those tax professionals who are not solicitors because of the perceived competitive advantage it gives to solicitors in the provision of taxation advice and related work. In so far as possible, I would like to see a level playing field between all tax advisors and I consider that this amendment will contribute to this. I recommend this amendment to the committee.