Róisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

301. To ask the Minister for Finance further to Parliamentary Question No. 82 of 30 June 2021, the percentage of notice of opinion and notice of assessments issued under the general anti-avoidance rules which result in an additional tax yield; and if he will make a statement on the matter. [39253/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that, of the 517 Notices of Opinion issued by Revenue under section 811 of the Taxes Consolidation Act 1997, 72 are still under enquiry. Of the 445 Notices finalised, 12.4% (55 Notices), resulted in a settlement with Revenue which included additional tax.

I understand that of the 445 notices finalised, 85.2% (379 notices), were withdrawn resulting in a nil yield following the Supreme Court’s decision in the Hans Droog case. As advised to the Deputy in Parliamentary Question No. 82 of 30 June 2021, it was successfully argued by the appellant in that case that time limits set out in legislation relating to the self-assessment system applied also to the general anti-avoidance legislation.

Also as previously advised to the Deputy, I understand from Revenue that no assessments have issued to-date under section 811C of the Taxes Consolidation Act 1997 which applies to tax avoidance transactions commenced after 23 October 2014 and requires the issue by Revenue of a Notice of Assessment instead of a Notice of Opinion. I understand it has been possible for Revenue to challenge tax avoidance transactions identified that took place after 23 October 2014 using specific legislative provisions, therefore to-date it has not been necessary for Revenue to issue assessments under section 811C.

Róisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

302. To ask the Minister for Finance further to Parliamentary Question No. 82 of 30 June 2021, the penalties or other consequences for the legal, accounting or other professional advisers who were involved in advising or implementing the transaction in cases in which notice of opinion and notice of assessments issued under the general anti-avoidance rules result in an additional tax yield; and if he will make a statement on the matter. [39254/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that there is no provision in the legislation to impose penalties or other consequences on professional advisors involved in advising or implementing transactions in respect of which Revenue issue a Notice of Opinion under the general anti-avoidance legislation in section 811 of the Taxes Consolidation Act (TCA) 1997, or an assessment under section 811C of the TCA 1997, and which subsequently result in an additional tax yield when finalised.

The Deputy should be aware that Finance Act 2010 introduced a Mandatory Disclosure Regime, the purpose of which is to ensure tax advisors and promoters of certain types of transactions as defined, provide information to Revenue on the nature of the transaction together with other details. This ensures Revenue is informed of these transactions and can determine if they consider the transaction represents tax avoidance and if so, the action they consider appropriate.

Failure to comply with this Mandatory Disclosure Regime may result in an advisor or promoter becoming liable to a civil penalty, as provided for in section 817O of the TCA 1997. The quantum of penalty is related to the level of non-compliance with the reporting requirement. I am advised by Revenue that to date they have not identified any such non-disclosure cases.