Pearse Doherty (Donegal, Sinn Fein)
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258. To ask the Minister for Finance if the levels 1 or 2 intervention under the compliance intervention framework has an upper limit on the size of the potential tax liability to avail of this avenue for minimising penalties and avoiding publication on list of defaulters; the maximum level of penalty mitigation allowed under each level of intervention under the compliance intervention framework; and if he will make a statement on the matter. [13196/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the intervention levels in its Compliance Intervention Framework enable it to deliver a consistent graduated response to taxpayer behaviour and compliance risk.

Level 1 interventions are aimed at supporting taxpayers by reminding them of their obligations and providing them with the opportunity to correct errors. A Level 1 intervention is only used where Revenue has not already engaged in any detailed examination or review of the matters under consideration. Taxpayers in receipt of a Level 1 compliance intervention may avail of the opportunity to self-correct their tax returns without penalty, if within the relevant time limits, or make an unprompted qualifying disclosure. Penalties will apply to any liability disclosed by way of an unprompted qualifying disclosure. Those penalties range from 3% to 100% depending on the category of default and the disclosure history of the taxpayer. Taxpayers who make an unprompted qualifying disclosure are protected from publication in the quarterly list of tax defaulters and from prosecution in relation to any tax offences identified in the disclosure. There is no limit on the amount of tax default that may be disclosed by way of an unprompted qualifying disclosure.

A Level 1 intervention may identify issues that warrant the initiation of a Level 2 intervention. For example, where a taxpayer makes an unprompted disclosure which is not qualifying, a Level 2 intervention will be initiated. Likewise, where a taxpayer does not respond to a Level 1 intervention, Revenue may proceed to examine the matter as part of a Level 2 intervention. Level 2 interventions are used by Revenue to confront identified compliance risk.

Level 2 interventions are carried out where Revenue has identified a tax risk. In these interventions, taxpayers may no longer avail of self-correction or make an unprompted qualifying disclosure. At the commencement of a Level 2 intervention, a taxpayer may make a prompted qualifying disclosure. Such disclosures face higher penalties, ranging from 10% to 100% depending on the category of default, the disclosure history of the taxpayer and whether the taxpayer cooperates fully with the intervention. A taxpayer who makes a prompted qualifying disclosure is also protected from publication in the quarterly list of tax defaulters and from prosecution in relation to tax offences identified in the disclosure. In cases where a taxpayer has failed to make a prompted qualifying disclosure or makes a disclosure which is not qualifying, penalties on any default identified will range from 15% to 100%. Such taxpayers also face publication in the quarterly list of tax defaulters subject to any default meeting the publication criteria and may also be subject to prosecution in relation to any tax offences identified. There is no limit on the amount of tax default that may be addressed in a Level 2 intervention.

For further information in relation to the Compliance Intervention Framework, the Deputy may wish to consult the Code of Practice for Revenue Compliance Interventions which is available on the Revenue website at: www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf