Pearse Doherty (Donegal, Sinn Fein)
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259. To ask the Minister for Finance if consideration has been given to introducing laws in relation to failure to prevent tax evasion similar to those contained in the Corporate Criminal Offences Clause within the Criminal Finances Act in Britain; and if he will make a statement on the matter. [13197/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that section 1079 Taxes Consolidation Act 1997 (TCA) imposes obligations on all auditors and tax advisers who become aware, in the course of their normal work, of material tax evasion or non-compliance committed by a client company, to report this to the company and request that the matter be rectified or that the company should report the offence to Revenue. The section also provides that if, at the end of six months, it is not established to the satisfaction of the auditor or adviser that the matter has been so rectified or reported, the auditor or adviser must cease to act as auditor, or cease to assist or advise the company in tax matters for a period of either three years from the date of the auditor or adviser’s report to the company or until the auditor or adviser is satisfied that the matter has been rectified or reported, whichever is the earlier.

Where an auditor ceases to act for the company, they must deliver a notice in writing to the company stating that they are ceasing to act and, within 14 days after such delivery, deliver a copy of the notice to an officer nominated by the Revenue Commissioners.

It is an offence for an auditor or tax adviser to fail to comply with these obligations. A person convicted of such an offence is liable on summary conviction to a fine of €1,265 which may be mitigated to not less than one-fourth part of such fine, or on conviction on indictment, to a fine not exceeding €6,345 or, at the discretion of the court, imprisonment for a term not exceeding two years, or to both fine and imprisonment.

The Code of Practice for Revenue Compliance Interventions sets out details of referrals which may be made to professional bodies. Section 851A TCA, which deals with the confidentiality of taxpayer information, provides that Revenue may disclose taxpayer information to a professional body where it is satisfied that the work of the agent does not meet the standards of that body. It is a matter for the relevant professional body to examine the referral and take any necessary action, under its own procedures. Such referrals will only be made in the most serious of cases, for example, cases of significant and/or repeated non-adherence to professional standards.

The Tax Administration Liaison Committee Audit Sub-Committee is a forum where Revenue and tax practitioners can discuss and address issues relating to compliance interventions and other compliance matters.

I am further advised by Revenue that it continually reviews the powers and sanctions provided for in the TCA, to ensure they are fit for purpose, and make proposals for change when appropriate.

Separately, the Deputy may be aware of the provisions of the Protected Disclosures Act 2014 (as amended), including the robust protections for workers who report information about potential wrongdoing encountered in a work-related context. Revenue is fully committed to its obligations under the Act and welcomes all information about potential wrongdoing related to tax, duty or customs controls. Revenue’s director of internal audit is a prescribed person under the Protected Disclosures Act to receive such information.

Revenue has structures in place to support workers and facilitates them to safely report potential wrongdoing in a number of ways. In December 2023, Revenue expanded its external protected disclosure reporting channels to include a dedicated voicemail service and a secure online protected disclosures reporting form which is easily accessible on the Revenue website at ros.ie/protected-disclosures-web/input/contact. It is also possible to make a protected disclosure to Revenue via email or by post. All protected disclosure reports are treated seriously and with utmost confidentiality. Revenue also accepts anonymous disclosures of information.

In 2024, a total of 171 reports received through these channels were assessed as meeting the criteria to be considered a protected disclosure. This is an increase of just over 450% on the 31 reports received through these channels in 2023.

When Revenue receives a protected disclosure report the information is risk assessed and appropriate follow-up action taken where a business or individual is suspected of non-compliance with their tax and/or duty obligations. Follow up action in this regard is undertaken in line with the Code of Practice for Revenue Compliance Interventions. The outcome of these compliance interventions can be monetary, such as identification of additional tax/duty liabilities, and/or non-monetary, such as tax head registration, tax head cessation, debt collection via a Phased Payment Arrangement, etc.

If the wrongdoing reported does not fall within the scope of responsibility of Revenue’s Director of Internal Audit, the report is securely transmitted to the most appropriate prescribed person, or to the Office of the Protected Disclosures Commissioner. Because of its obligations to preserve taxpayer confidentiality under section 851A TCA, Revenue does not provide any feedback to the reporting person on the outcome of an investigation into tax/duty evasion.