Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I will read the briefing note as this is an important provision. This section amends 851A of the Taxes Consolidation Act 1997. Section 851A provides the basis for confidentiality of taxpayer information. It also provides the basis for the circumstances in which such information can be disclosed by the Revenue Commissioners, including the limited circumstances in which such information can be disclosed to the Department of Finance. The proposed amendment will address a conflict between the legislative provisions of section 851A and those of the Freedom of Information Act, which currently prevents the Department of Finance from providing records to the Office of the Information Commissioner even when it is statutorily required to do so in the context of the operation of the freedom of information legislation.

This change in law is necessitated by a specific issue which has arisen. This issue arose during the course of a review of the freedom of information decision by the Information Commissioner which, in part, involved records which are taxpayer confidential. Under the current provisions of section 851A, officials in the Department of Finance are precluded from providing these records to the Information Commissioner as to do so would constitute a criminal offence. However, on the other hand, under the Freedom of Information Act, there is a statutory requirement to furnish this information to the Information Commissioner and failure to comply may constitute a criminal offence. This results in a highly unsatisfactory legal position with conflicting legislative provisions and this prevents the Department from providing the records to the Information Commissioner as it wishes to do so.

The proposed amendment to section 851A should address this legislative conflict and remove the anomaly. It will ensure that the requisite records can be provided to the Information Commissioner so that the commissioner can conduct a review and fulfil his statutory function without further delay.

Department of Finance officials had initially explored the possibility of including this amendment in this year's Finance Bill. However, the Department was advised that the proposed amendment was inappropriate for inclusion in a money Bill given that it did not have money Bill status. Therefore, it is necessary to use an alternative, such as this Bill, to bring forward the amendment. Under the measure, the Department of Finance can receive confidential taxpayer information from the Revenue Commissioners solely for specific limited purposes, namely, in the context of policy formulation and in connection with state aid matters. It is important to note that any Revenue officer or any person, including Department of Finance officials, to whom taxpayer information is disclosed and who knowingly provides to any person any taxpayer information or uses any taxpayer information otherwise than in the course of administering or enforcing the tax Acts shall be guilty of an offence and shall be liable to criminal sanction.