Ireland Issues Tax Amnesty Reminder
The deadline for those wishing to participate in Ireland’s Tax Avoidance Settlement Opportunity is June 30, the Revenue has said.
The settlement opportunity was contained in the 2014 Finance Act. It applies to transactions that began on or before the publication of the Finance Bill on October 23, 2014.
Revenue said that taxpayers who entered into a transaction on or before October 23, 2014, to avoid tax that is being challenged, or is capable of being challenged under Ireland’s general anti-avoidance rule, can settle with Revenue on advantageous terms. They must make a “Qualifying Avoidance Disclosure” before June 30, 2015. The settlement opportunity also applies to transactions that have not yet been challenged by Revenue, and covers tax disputes that do not involve tax evasion or fraud.
A taxpayer who makes a qualifying disclosure will receive a 20 percent reduction in the interest otherwise payable and will not face a surcharge. Penalties will not apply if Revenue accepts that the disclosure under the scheme is a qualifying avoidance disclosure and the taxpayer’s name will not be published in the quarterly list of tax defaulters.
Transactions entered into after October 23, 2014, are covered by the 2014 Finance Act, which tightened the general anti-avoidance rule, introduced specific anti-avoidance rules, and increased the surcharge payable in failed tax avoidance schemes to 30 percent.
Revenue Chairman Niall Cody said: “If you’re in dispute with Revenue over a tax avoidance scheme or if you’re doubtful that a scheme you’ve entered into will stand up if probed by Revenue, you should act now to avail of this opportunity as time is fast running out. After the deadline, Revenue will rigorously pursue these cases and litigate through the Courts.”
