Joan Burton (Dublin West, Labour)
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98. To ask the Minister for Finance to outline his plans to institute a crackdown on overseas pensions, holiday homes, funds or other sources of income held by Irish residents abroad; the requirements for compliant taxpayers and scale of penalties for non-compliant taxpayers; the number of letters that have been issued to individuals, corporations, trusts and any other entities; and if he will make a statement on the matter. [10565/17]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised that as a result of greater co-operation and information sharing between tax authorities worldwide, Revenue will receive details of offshore assets and accounts held by Irish tax-residents under a range of international agreements including FATCA the Inter-Governmental Agreement to share financial account information with the United States, the OECD Common Reporting Standard, and the EU Directives on Administrative Co-operation.

The information that Revenue receives from other tax administrations will be used to tackle non-compliance with tax law. The information will be matched to Revenue's taxpayer records and cross-checked against prior returns to ensure all relevant income and assets have been declared. The information will also be used in Revenue's risk systems to highlight cases for intervention. Revenue has a suite of compliance interventions ranging from profile interviews and aspect queries, to Revenue audit and full investigation with a view to criminal prosecution, as appropriate, and will match the appropriate intervention to the risks identified.

If a taxpayer is fully compliant and has declared all relevant income and gains from domestic or offshore sources, then no action is required.

If a taxpayer is not fully compliant, then I strongly encourage them to make a disclosure under Revenue's Code of Practice for Revenue Audit and other Compliance Interventions ("the Code"). This is particularly the case for any taxpayer who has any tax compliance issues relating to offshore matters as I introduced a specific disclosure scheme for compliance issues in the Finance Act 2016.

By coming forward before 1 May 2017 and regularising their position with Revenue, taxpayers can avail of the current qualifying disclosure benefits as set out in the Code which include reduced penalties, avoiding publication in the list of tax defaulters and not being investigated by Revenue with a view to prosecution. The Deputy should also note that with effect from 1 May 2017 it will no longer be possible to obtain the benefits of a qualifying disclosure if any issues included in the disclosure relate directly or indirectly to offshore matters. Full details of the Code and the disclosure scheme, including Frequently Asked Questions, are available on the Revenue website.

Regarding the level of penalties for non-compliance, this varies depending on the circumstances of the disclosure. Broadly speaking, where a taxpayer makes a qualifying disclosure, then penalties of 10% apply.  Where a qualifying disclosure is not made, then penalties ranging from 75% - 100% apply.  From 1 May 2017, it will not be possible to make a qualifying disclosure where it relates to offshore matters and as a result penalties ranging from 75% - 100% will apply.

Revenue has confirmed that they have written to around 500,000 self-assessed Income Tax payers who filed an Income Tax return in 2015. While the letter acknowledges that the vast majority of tax returns are correct, its primary purpose is to inform taxpayers of how they can correct any errors or omissions that there may be in any tax returns they have filed and thereby avail of the benefits of making a disclosure in accordance with the Code.

The letters also advise taxpayers of the various other aspects of the Code which, from time to time, may be relevant to their circumstances including the opportunity to self-review their tax affairs or understanding when a technical adjustment or innocent error might apply.

Revenue has also taken the opportunity in the above-mentioned letter to explain the changes to the Code necessitated by Finance Act 2016 and to highlight the upcoming deadline for disclosing any offshore matters.

I am further advised that Revenue has not issued any letters to entities like corporations or trusts.