Róisín Shortall (Dublin North West, Social Democrats)
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71. To ask the Minister for Finance the number of tax opinions provided each year up to 2012; the number of companies involved; and the protocol and approval system for the issuing of these opinions. [39245/16]

Róisín Shortall (Dublin North West, Social Democrats)
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72. To ask the Minister for Finance further to a media report (details supplied), the circumstances whereby the Revenue Commissioners notified the European Commission in respect of tax opinions; and the number that have been notified to date broken down by year of issuance. [39246/16]

Róisín Shortall (Dublin North West, Social Democrats)
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73. To ask the Minister for Finance the new policy in respect of the issuing of tax opinions to multinational companies and the estimated tax forgone as a result of these opinions being issued up to 2012; and if he will make a statement on the matter. [39247/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 71 to 73, inclusive, together.

I am advised by Revenue that, in discharging their statutory role in relation to the administration and collection of taxes, Revenue provides a range of information, including tax opinions, to taxpayers to assist them in understanding and complying with their obligations under tax law.

Revenue has published detailed guidelines on the provision of tax opinions, which are available on the Revenue website.  Guidelines relating to opinions for cases dealt with by Revenue's Large Cases Division (LCD) are available on www.revenue.ie under "[37.0.40] Large Cases Division: Opinions/Confirmations on Tax/Duty Consequences of a Proposed Course of Action". Guidelines relating to requests for opinions submitted for non-LCD cases through the Revenue Technical Service (RTS) are available on under "Guidelines on Revenue's Service to Practitioners and Business Taxpayers".  The guidelines set out the procedures to be followed in relation to seeking an opinion from Revenue on a tax matter and also provide details of the areas within Revenue with responsibility for issuing opinions.  While it is open to any taxpayer to seek an opinion from Revenue on the tax treatment of a particular transaction or activity, the circumstances in which a taxpayer should require an opinion from Revenue are relatively limited. This is because Revenue already publishes extensive detailed information, on the application of tax legislation, in various tax briefings and guidelines which are available on the Revenue website.

An opinion will be provided by Revenue where the issues are complex, information is not readily available or there is genuine uncertainty in relation to the application of the tax rules as set down in the legislation. An opinion will provide Revenue's view of the correct application of tax law to a particular transaction or situation and will assist the taxpayer in filing a correct tax return as required under the legislation. Accordingly, the issue of an opinion by Revenue in respect of a complex tax matter is not about forgoing any tax.

On 7 September 2016 I confirmed in the Dáil that Revenue would be amending its guidance and instructions to provide that tax opinions will not remain valid beyond five years without a full review. 

I am informed by Revenue that it has updated its guidance to confirm that opinions issued to taxpayers, whether multinational companies or other taxpayers, will remain valid for a maximum period of five years. Previously the maximum period was seven years. However, depending on the particular circumstances, a shorter period than five years may be specified.  After the maximum validity period, whether five years or less, an application for a renewal or extension must be made if the taxpayer wishes for the opinion to continue. An opinion will only remain valid for so long as the facts and circumstances on which it is based continue to exist and the relevant legislation and practice remains in place.

Revenue has also confirmed that it has begun reviewing a number of opinions that were provided more than five years ago.

While statistics have not been compiled on the number of tax opinions issued by Revenue each year, in responding to the European Commission enquiries in relation to tax ruling practice in the various Member States, Revenue identified that in the period 2010-2012 the total number of advance opinions issued to companies on various matters relating to corporation tax was as follows:

To facilitate accountability Revenue has committed to publishing in its future Annual Reports the number of opinions it issues each year. 

In the context of its State Aid enquiries into ruling practices in different Member States, the European Commission requested that Ireland provide it with certain information in respect of Revenue's administrative practice in relation to advance opinions. The information provided to the Commission included an overview of Revenue's administrative practice with regard to the provision of advance opinions, the type of issues on which opinions are provided, and details of opinions provided to over 300 companies, including all opinions issued in the years 2010, 2011 and 2012 on a range of issues.