Oireachtas Joint and Select Committees
Thursday, 22 February 2018
Public Accounts Committee
Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed)
9:00 am
Mr. Niall Cody:
That strays into the area of tax evasion and non-payment. Tax avoidance is different. Tax avoidance is using the law as set out but maybe not as intended. It is a different line between tax evasion and tax avoidance. If there is tax evasion, various things can result, up to and including prosecution. If it is tax avoidance or tax planning that goes wrong, then it is not tax evasion. Some of the practices span a line between avoidance and evasion. We were before the committee last year and we discussed some aspects of the various projects we have done, including those relating to contractors and medical consultants. Some of that strayed into tax evasion. It was probably intended or started off as tax avoidance. Committee members will see cases where we end up with audit settlements and there are penalties – that is not avoidance. There are special rules around avoidance.
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