Joan Burton (Dublin West, Labour) | Oireachtas source

I move amendment No. 104:

In page 99, line 19, to delete "1 May 2017" and substitute "1 January 2017".

This amendment relates to section 54, which I strongly welcome. Essentially, I am proposing to change the arrangements that are proposed in the Bill in respect of certain people with offshore activities who are seeking to mitigate or avoid tax. I welcome the moves by the Minister and the Revenue Commissioners to address this situation. The Bill provides that from 1 May 2017, the penalty mitigation arrangements that are currently available to tax defaulters who make qualifying disclosures to Revenue will not apply firstly where the disclosure relates "directly or indirectly to offshore matters" - believe it or not, we have some offshore tax defaulters in this country - and secondly where the disclosure relates to any other tax default in circumstances in which the person has "before the date the disclosure is made" tax liabilities "that are known or become known" to Revenue and give rise to "a penalty".

I will explain the purpose of this amendment, which is in my name and that of Deputy Pearse Doherty. When an offshore tax defaulter comes to the attention of Revenue Commissioners, it is more than likely that the sums are very significant and potentially very large. Why should law-abiding and tax-abiding citizens and workers agree to give tax defaulters an extra five months, over and beyond the effective commencement of the Finance Act, to put their affairs in order? It is possible that tax defaulters will use that time to seek the advice of their current tax advisers or other tax advisers, perhaps with a view to moving their assets further away from the jurisdiction of the Revenue Commissioners and making new arrangements. For all we know, such arrangements could be effective in avoiding tax. I am proposing, therefore, to move the date on which this very welcome change in tax law, which will enormously strengthen the hand of the Revenue Commissioners in dealing with offshore tax defaulters, will come into effect from 1 May 2017 to 1 January 2017.

See this speech in context