James Bannon (Longford-Westmeath, Fine Gael)
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Question 281: To ask the Minister for Finance if changes to penalties imposed on the personal representatives and estate of a deceased non-compliant taxpayer, which were incorporated into Irish Law in response to the provisions of the European Convention on Human Rights Act 2003 and have been implemented here since 18 March 2008, will be backdated with the result that Revenue will not seek recovery of any penalty element for a deceased person's personal representatives and will discontinue proceedings for recovery of such penalties if they have been initiated since that date but penalties already agreed do not appear to be subject to refund or full recognition in view of the fact that imposing penalties on deceased taxpayer' estates is contrary to Article 6 of the European Convention of Human Rights; and if he will make a statement on the matter. [30014/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that they have reviewed their procedures in relation to the imposition of penalties in relation to tax settlements for deceased persons. Arising from this review, revised procedures apply with effect from 18 March 2008 (the date of publication of the new procedures). In accordance with these new arrangements, where the taxpayer dies before a settlement has been agreed with Revenue, Revenue will not seek recovery of any penalty element from the deceased's personal representatives (and will discontinue proceedings for recovery of such penalty if they have been initiated).

I should point out that where a settlement that includes a penalty element has been agreed between Revenue and a deceased taxpayer prior to his/her death (or where a penalty has been awarded in proceedings finalised prior to the taxpayer's death), and that penalty remains unpaid or not fully paid as at the date of death, Revenue will continue to proceed against the personal representatives of the deceased for the recovery of that unpaid penalty. There is no change to existing Revenue practice in these particular circumstances.

I am also advised by the Revenue Commissioners that settlements finalised before 18 March 2008 will not be reopened. These negotiated settlements, made in good faith by both parties, will generally have involved unreserved letters of offer and acceptance and are considered to be binding.