Joan Burton (Dublin West, Labour)
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178. To ask the Minister for Finance the number of tax determinations that have been made by the Revenue Commissioners since 1991 to date in 2016; and if he will make a statement on the matter. [40046/16]

Joan Burton (Dublin West, Labour)
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179. To ask the Minister for Finance the reform recently agreed by Government in respect of tax opinions, determinations and letters of comfort; and if he will make a statement on the matter. [40047/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 178 and 179 together.

The Deputy has referred to tax opinions, determinations and letters of comfort. I would clarify that while Revenue may issue non-binding advisory opinions in certain circumstances and may make determinations in respect of certain VAT matters, Revenue does not issue "letters of comfort". 

There has been a focus on tax opinions, or 'rulings' as they are sometimes called, over the last number of years, in particular as a result of the European Commission State aid investigations in a number of countries. Ireland does not have a statutory system of binding tax 'rulings' and there is no provision in Irish law for the issuing of such rulings.

Revenue may provide non-binding opinions on the application of tax law to specific transactions or situations. The provision of such opinions comes within the general administrative functions vested in Revenue under tax legislation. 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. Revenue has published detailed guidelines on the provision of tax opinions, which are also 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.ieunder "[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 onwww.revenue.ieunder "Guidelines on Revenue's Service to Practitioners and Business Taxpayers".

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. In no case has Revenue the authority or discretion to depart from the applicable rules as set out in tax law.

In addition to providing opinions, Revenue may make determinations on certain VAT matters such as the appropriate rate of VAT that applies to a particular supply of goods or services or on whether a particular activity is exempt from VAT. Information on the circumstances in which such determinations are made and the process is available at .

Statistics have not been compiled on the number of tax opinions issued by Revenue and determinations made by Revenue in relation to certain VAT matters each year. However, 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 to 2012, the total number of 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. Where Revenue makes a determination in respect of a VAT matter, that determination may be published in Iris Oifigiúil. 

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 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. It has always been the case that 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.