Transcript www.charteredaccountants.ie

Chartered
Tax
Consultant
Stage 3 Module 12
Revenue Interventions
Presenter Name – Brian Keegan
Chartered Accountants House
www.charteredaccountants.ie
EDUCATING
SUPPORTING
REPRESENTING
Revenue Interventions
• Self assessment system
• PAYE taxpayers not self assessed
• Revenue Powers
Revenue Powers
• System of Audits, Enquiries and
Investigations
• Powers to charge Interest and Penalties
• Authority to Publish
• Tax Evasion cases – Criminal Prosecution
• Opportunity to Disclose tax default
• Reduced penalties under Civil Code
• Non publication
• Undertaking not to seed prosecution
Disclosure
• 2002 Code of Practice for Revenue
Auditors
• Qualifying Disclosure with Penalty
mitigation
• Operated until 2008
• Sec 1077E TCA 1997 – F(No2)A 2008
• Right to appeal penalty – European
Convention on Human Rights
• Supplemented by 2010 Code of Practice
for Revenue Audits
Topics Covered
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Self Assessment – principal features
Revenue Powers
Revenue Audits
Revenue Investigations
Appeal Process
Taxpayers Obligations
1. Payment of tax liability in full and on
time
2. Filing of correct Tax Return on time
3. Maintenance of Records
Payment of Tax Liability
• Sec 952 TCA 1997 “Chargeable Person”
• Preliminary tax payment
• Due dates
– Individual: 31st October following year of
assessment
– Small company: 21st of 11th month of AP in
year of assessment
– Balance due by return filing date
– Interest on late payment from due date
– ROS extensions
Filing of Tax Return
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Sec 951 TCA 1997
“Chargeable Persons” required to file
Prescribed format
Delivered by specified date for
chargeable period
Obligation to Keep Records
• Sec 886 TCA 1997
• Every person who
– Carries on a trade, profession or other activity
chargeable under Sch D
– Is chargeable to tax under Sch D or Sch F on
any other income
– Is chargeable to CGT on chargeable gains
• Required to retain records to “enable true
returns to be made..”
Record Keeping
• Documents, accounts, books and other
data relating to
– All sums received and expended
– All sales and purchases of goods and
services
– All assets and liabilities of trade, profession or
activity
– All CGT acquisitions and disposals
• Penalty of €3,000 for non compliance
with sec 886 TCA 1997
Linking Documents
• Sec 886(2)(c) TCA 1997
• Drawn up in making of accounts
• Details of calculations linking records to
accounts
• Obligation on taxpayer to retain
• Quigley v Burke 1995
• Prepared by accountant
• “Within possession or power” of the
taxpayer
Retention of Records
• Kept in an official language of the State
• Electronic format complying with Sec 887
TCA 1997
• Six years from completion of relevant
transaction
• Lesser period if agreed with Revenue
• Six year limited extended where Return
not filed on time
• Six years from end of year of assessment
in which Return is filed
VAT Records
• Chapter 7 of Part 9 and Sec 124(7)
VATCA 2011
• Retain records for six years from date of
latest transaction
• Property transactions pre 1st July 1998
– Retain records for duration of VATable interest
or waiver of exemption
– Plus six years
Taxpayers Rights
• No statutory safeguards to protect
taxpayer
• Situation in Ireland not similar to other
jurisdictions
• Non statutory safeguards only
• Revenue documents
• Revenue Customer Service Charter
Taxpayers Rights
• No basis in law
• Responsibility of Revenue to taxpayer
considered on introduction of self
assessment and Revenue Audits
• Codes of Practice – 2002 and 2010
• Taxpayer’s Charter of Rights
Taxpayer’s Charter of Rights
• Introduced 1989
• Non statutory guidance on operation of
self assessment and Revenue Audits
• Approval of Oireachtas
• Revenue acknowledged taxpayer has
certain rights
• Terence Keogh v CAB and others 2004
• Taxpayer had entitlement to certain
information from Revenue
Customer Service Charter
• 2005 State body requirements
• Customer Services Charter published by
Revenue
• Removal of Taxpayer’s Charter of Rights
• New Charter includes Taxpayer’s Charter
• Also lists taxpayer obligations
• Revenue & Citizens rights &
responsibilities - Mutual expectations
• Shortened version in 2010 Code of
Practice
Customer Service Charger
Consistency,
Equity and
Confidentiality
•Fair, reasonable and consistent
administration of the law
•Collect no more than fair amount of tax
•Information treated as confidential
Courtesy and
Consideration
•Courteous, considerate and non
discriminatory treatment
•Reasonable co-operation from taxpayer
Information and
Assistance
•Will be given necessary information and
assistance to understand obligations
•Will give true and correct information to
Revenue
Customer Service Charter
Presumption of
Honesty
•Treated as honest unless clear
reason otherwise
•Deal in honest manner with Revenue
Compliance Costs
•Administration of tax regime in a way to
minimise costs
•Maintain proper records for Revenue
Complaints, Review •Taxpayer encouraged to use Revenue
and Appeal
complaints and appeals procedures
•Complaints dealt with promptly,
impartially and in confidence
•Taxpayer’s rights not prejudiced re
Ombudsman or Appeal Commissioners
Revenue Powers
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Part 38 TCA 1997
Revenue’s Powers Group Report 2003
Routine and non-routine powers
Enquiry
Request for assistance
Seizure
Professional privilege
Routine Powers
• Revenue Audits
• Sec 899 TCA 1997 – right to make
enquiries
• Necessary to satisfy the accuracy of
Return or particulars delivered
• Sec 956 TCA 1997 – supplements S 889
• Revenue making or amending an
assessment
• Act on information provided and make
enquiries
Routine Powers
• Four year time limit
• From tax year of filing
• Fraud or neglect cases – extensions of
time limit
• Revenue must have reasonable grounds
• Sec 909 TCA 1997
• Revenue request for Statement of Affairs
• Applies to spouse – husband and wife
• Form SA1
Non Routine Powers
• Significant non-routine powers
• Taxpayer and agent required to make
records available for inspection
• Certain books, records and other
documents
• Investigation and prosecution cases
• Be alert to the distinction
• Routine and non routine powers
• Understand type of Revenue intervention
Search and Seizure Powers
• Sec 905 TCA 1997
• Permits Revenue to enter business
premises
• No search warrant needed
• Purpose to examine documents
• “Streetscape Visit”
• Target black economy and cash business
Search and Seizure Powers
Authorised Officer can enter Business Premises
•Require staff to produce records
•Search for records
•Examine and copy records
•Remove records – for further examination
•Legal proceedings or Criminal proceedings
•Examine property listed in records
•Require a person to provide assistance and
explanations
Search and Seizure Powers
• Streetscape Visit ≠ Revenue Audit
• Unprompted Voluntary Disclosure option
remains open
• S.905(2)(b) TCA 1997
• Person carrying on taxable activity; liable
to tax or has information re liability
• Required to give “all reasonable
assistance” to Revenue
Professional Advice
• S. 905(2)(c) TCA 1997
• Protection from Revenue search and
seizure powers
• Professional advice given – not for
dishonest, fraudulent or criminal purposes
• Outside scope of search and seizure
powers:
Information protected by legal privilege
Confidential medical information
Search and Seizure Powers
• Sec 905(2)(e) TCA 1997
• Private residence – occupiers permission
needed
• Revenue can obtain District Court search
warrant
• Penalty €4,000 for non compliance
• Sec 906 TCA 1997
• Revenue may be accompanies by Garda
• Power to arrest without warrant
Search Warrant
• Sec 908 TCA 1997 – District Court
• Revenue entitled to obtain search warrant
• Revenue tax offence- committed or about
to be
• Material evidence at place or search
• Persons can be searched by Revenue
• Power to compel person to explain value
and relevance of material found
• Immediate arrest; prison and/or fine
Information Seeking Powers
• Additional powers
• Sections 900, 901, 902 and 902A TCA 97
• Production of information from taxpayers,
agents and third parties
• Intended for use in non-routine cases
• Target tax evasion
• District Court Production Order professional advisors
• Not for use on unidentified category of
taxpayers
Information from Taxpayer
• Sec 900 and 901 TCA 1997
• Power to call for production of books,
records or other documents and
information
• Sec 900 – Uncooperative taxpayer
• Reasonable opportunity given first
Information from Taxpayer
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Sec 901 TCA 1997
Application by Revenue to High Court
Production of books and records
Failure to comply with Sec 900
Sec 901 used from outset in cases
where serious tax evasion suspected
Information from Third Parties
• Sec 902 TCA 1997
• Third parties other than financial
institutions
• Uncooperative taxpayer
• To advance audit or enquiry
• Revenue must have reasonable grounds
• Professional not obliged to disclose
confidential information or professional
advice
Information from Third Parties
• Sec 902A TCA 1997
• Revenue application to High Court
• Order to obtain information from third
party
• Financial Institutions excluded
Suspicion of non-compliance leading to
serious prejudice
Suspicion where identities of persons not
known
Information from Third Parties
• Sec 902A TCA 1997
• Third party failure to comply with Sec
902 TCA 97 Notice
• Sec 907A TCA 97– Revenue can apply
to Appeal Commissioners (FA 2010)
Third Parties
• Financial Institutions
• Sec 908A TCA 1997
District Court or Circuit Court for authority to
inspect records
• Sec 907 TCA 1997
Appeal Commissioners
• Sec 908 TCA 1997
High Court
 To compel Financial Institutions to produce
information
Revenue Powers Summary
Sec 899
Right to make enquiries
Sec 900
Power to call for books and information from
taxpayer
Application to High Court for books and
information
Information from third party- authorised officer
Sec 901
Sec 902
Sec 902A Application to High Court – information from third
party
Sec 903 Power of inspection PAYE
Sec 904
Power of Inspection RCT
Sec 904A Power of inspection – appropriate tax
Revenue Powers Summary
Sec 904B
Report to Committee Public Accounts
Sec 904C-K
Other powers of inspection
Sec 905
Inspection of documents and records
Sec 905(2A)
District Court Search Warrant
Sec 906
Authorised Officers and Garda Síochána
Sec 906A
Information from Financial Institutions
Sec 907
Appeal Commissioners application - FI
Sec 907A
Appeal Commissioner application – 3rd pty
Revenue Powers Summary
Sec 908
High Court Application – information from FI
Sec 908A Revenue Offence – right to information from FI
Sec 908B High Court Application – associated institutions
Sec 909
Power to require return of property
Sec 910
Sec 911
Power to obtain information from Gov Minister or
public body
Valuation of assets – power to inspect
Sec 912
Computer documents and records
Sec 912A Information for foreign tax authorities
Power of Attachment
• Sec 1002 TCA 1997
• Taxpayer defaults on tax, interest or
penalty due
• Revenue has power to attach amounts
due to a third party
• Notice of Attachment served on person
owing money to defaulting taxpayer
• T/P name and address; aggregate taxes,
interest and penalties owed
Power of Attachment
• Direction to deliver within 10 days
• A return stating amount due by him to
taxpayer
• Direction to pay to Revenue the taxes
due, or if lower, the debt due to taxpayer
• Notice of attachment on monies held in
joint names in financial institution
• Assumption that monies held equally by
unless evidence produced within 10 days
Power of Attachment
• Sec 1002(3) TCA 1997
• 14 days expired from date tax fell due
• Revenue must give 7 days notice to
taxpayer of intention to attach
• Debtor making payment to Revenue
regarded as having paid taxpayer
• Taxpayer must allow payment
• Very serious commercial implications
Revenue Offences Sec 1078 TCA 1997
Person guilty of offence if he
1. Knowingly or wilfully delivers incorrect return, accounts,
incorrect information
2. Knowingly aids, abets, assists, incites or induces another
person to do as 1
3. Knowingly claims or obtains a relief without entitlement
4. Knowingly or wilfully issues incorrect invoice, receipt or
other document
5. Fails to deduct and remit DIRT, DWT, RCT
6. Fails to deduct and remit withholding tax on UCITs or
Unit Trust
Revenue Offences Sec 1078 TCA 1997
Person guilty of offence if he:
7. Fails to comply with any provision requiring:
- Furnishing of Return of Income, Profits or Gains
- Furnishing of other return, certificate etc
- Keeping of accounts, books or records
- Production of books, records, accounts
8. Destroys, defaces or conceals, within specified time limits,
records or documents from authorised officer – includes
all documents required to be maintained
9. Fails to remit PAYE and PAYE on time
10.Obstructs or interferes with Revenue Officer
11.Makes fraudulent or negligent return of debt due under
Sec 1002 TCA 97
Professional Advisors
• Sec 905(c) TCA 1997
• “professional advice of a confidential
nature given to a client (other than advice
given as part of a dishonest, fraudulent or
criminal purpose)”
• No disclosure to an authorised officer
• Chartered accountant covered
Professional Advisors
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Sec 908D TCA 1997
District Court Production Order
Investigation of criminal Revenue offence
Use of search warrant viewed as heavy
handed
• Information given on oath by authorised
officer
• An offence is being or about to be
committed
Professional Advisors
• Material likely to be of value for investigation
of the offence or
• Constitutes evidence of commission of the
offence
• Is in possession of person specified in the
order
• Judge may order that the person
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Produce the material
Give access to it
Produce computerised records
Allow Revenue take away records
Professional Advisors
• Documents subject to legal privilege
excluded
• Prudential PLC & Anor v Special
Commissioner 2009
• “where legal advice is sought in
confidence from a qualified legal advisor
in his professional capacity; privilege may
be claimed for the communications made
for that purpose”
Legal Privilege
• Is chartered accounted protected?
• Professional advice protected only where
subject to a legal privilege
• Sec 908D TCA 1997 – fine up to €5,000
for non compliance and/or
• Imprisonment for up to 6 months
Section 1079 TCA 1997
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Aiding and abetting provisions
Financial or professional consultants
Who knowingly facilitate tax evasion
“knowingly concerned” in fraudulent
evasion or
• “reckless” as to whether the person is
concerned in fraudulent tax evasion
Sec 1079 TCA 1997
• Auditors and relevant persons
• Becoming aware of material tax evasion
or non-compliance
• Committed by client company
• Must report this to the client
• Request that matter is rectified or
reported to Revenue
• Must cease to act if not rectified within 6
months
Sec 1079 TCA 1997
• Resignation must be reported to Revenue
• Cease to act for 3 years or until satisfied
matter is rectified
• Advisor not prevented from assisting with
preparation for legal proceedings existing
or pending within 6 months of date of
reporting offence
• Judgment of material tax evasion made
by auditor or consultant
Revenue Audits
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Part of Self Assessment system
Review of tax returns, books and records
For accuracy and validity
One tax year and one tax head or
Covering a number of years and more
than one tax head
Who is subject to Audit or Investigation?
• All companies
• Individuals who are “chargeable persons”
• Sec 956 TCA 1997 – Revenue has right
to make enquiries
• Individual who is solely and correctly
within PAYE system is not within Revenue
Audit scope
Chargeable Person
• Sec 950 TCA 1997
• Income Tax – individuals within self
assessment
• Self employed individuals
• Individuals with income under PAYE
system plus other income not coded
• Gross “other income” < €50,000
• Proprietary Directors >15% Ord Share capital
Earliest Date for Revenue Audit
• Earlier of
– Submission of Tax Return
– Due date for submission of Tax Return
• Sec 954 TCA 97
• Assessment cannot be made before
“specified” return date
• Unless Return filed by taxpayer
What is a Revenue Audit?
• Sec 956 TCA 97 – power to conduct
Revenue Audit
• Powers to make enquiries
• Powers to amend assessments
• Four year time limit
• Fraud or neglect cases – time limit lifted
• “Negligence” = general lack of care
• Wide scope for Revenue to raise audits
Where ?
• Field Audit – at taxpayer’s place of
business
• Desk Audit – Revenue offices
• Desk Audit may develop to field audit
• Revenue determines that more in-depth
review is necessary
Audit Notification Letter
• Valid audit notification must :
– Be in writing
– Include the words “notification of a Revenue
Audit
– State date, time and location of audit
– State scope of audit, tax heads and periods
– State name of person under audit
– Include instructions for prompted voluntary
disclosure
– State whether e-audit will be carried out
Is it a Revenue Audit?
• Establish at outset if Revenue
communication is notification of a
Revenue Audit
• Implications for
– Penalty mitigation
– Exemption from publication and prosecution
– Unprompted Qualifying Disclosure
• Is it a non –audit notification?
What is NOT a Revenue Audit?
Assurance Checks
Aspect Queries
•Contact by phone, e mail, letter or in person
•Risk Based
•Back up for Tax Return medical expenses
or RAC cert
•Not a notice of Revenue Audit
•Right to make Unprompted Qualifying
Disclosure remains
•Aspect queries
•VAT repayment claims documents
•Customs declarations
•Streetscape visits
•Profiling Interviews
•Respond fully, quickly and honestly
•Query on one aspect of
case
•Shown up by REAP
•May be a precursor to
Revenue Audit
•Not a Revenue Audit
•Will be told why query is
made
•Right to make
Unprompted Qualifying
Disclosure not affected
What is NOT a Revenue Audit?
Profiling Interviews
Other Interventions
•Taxpayers risk-profiled by Revenue
•Information in REAP
•Local knowledge
•Industry specific information
•If risk level higher, profile interview instead
of aspect query
•Letter issues – interview 21 days later
•Meeting with taxpayer – risk areas raised
•Opportunity to make Unprompted Qualifying
Disclosure
•Taxpayer advised within one week if
Revenue Audit to take place
•Sectorial review letters
•Special investigation
letters
•Special projects follow up
letters
•Serious legal
consequences possible
Audit Triggers
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Reason for audit selection not disclosed
Generally based on informed selection
Triggered by presence of risk indicators
Particular industry sector or scheme
Some are random – very few
REAP
• Risk Evaluation Analysis & Profiling
• Revenue’s risk evaluation system
• “Collecting the right tax and duty at the
right time”
• Analyses data
• Scores assigned based on level of risk
• Customer’s record over period of time
Audit Selection Factors
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Late submission of Returns
Poor gross margins
Low profits for industry
Third party information
VAT or PAYE discrepancies
Random Selection (6%)
Industry
Much of detail collated through REAP
Penalties
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Fix Rate and Tax Geared Penalties
Tax geared based on % of tax
Fixed rate – TCA, CATA, VATA , SD Acts
Civil penalty regime
Level of cooperation during audit
Fixed Penalties
• Apply to offences not resulting in
underpayment of tax
• Failure to file a return of information
• Sec 889 TCA 97 third party returns
• Sec 886 TCA 97 keeping of records
• Sec 902 TCA 97 cooperation with
Revenue
Fixed Penalties
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Sec 1077E(8) TCA 97
€3,000 for careless behaviour
€5,000 for deliberate behaviour
Sec 26 and 27A VATA 1972
Failure to operate VAT
€4,000 for failure to register for VAT/keep
full and true records
• Category of default on same basis as Sec
1077E TCA 1997
Penalties CAT
• Sec 58 CATCA 2003
• Fixed penalties €3,000 to €6,345
• Failure to meet Sec 46 CATCA
obligations
• Delivery of Returns, payment of tax,
provision of information
• Tax geared penalties where deliberate or
careless failure
Penalties Stamp Duty
• Fixed penalty €1,265
• Fraudulent or negligent execution or
preparation of an instrument for execution
• Sec 8(3) SDCA 1999
• Filing incorrect Return
• Sec 8A SDCA 1999
• Fixed penalty €3,000
• Tax geared penalties for understating
value
• Failure to comply with due dates for
stamping
Penalties – Risk Management
• Penalties give rise to substantial
payments
• Advise client of tax geared and fixed
penalties
• Calculate amounts of penalties
• Revenue practice where both tax geared
and fixed penalties apply
• Seek to recover only the tax geared
penalty
Interest for Late Payment
• Sec 1080 TCA 1997
• Interest from date tax becomes due
• Requirement to pay interest “locked in”
with requirement to pay tax
• IT,CT and CGT – PT Rules
• Interest exposure known on filing of
Returns
• Proprietary Directors – interest calculated
before PAYE deducted
Interest for Late Payment
• IT, CT and CGT
– Rate from 1st July 2009
– 0.0219% per day
• Fiduciary Taxes – PAYE/VAT/RCT
– 0.274% per day
• Interest calculated from due date
• Instalment arrangements –interest to
cover period of payment
• No mitigation of interest payments
Interest – Risk Management
• Interest applied on same basis to all
underpayments
• Interest on underpayments substantial
• Ensuring client advised of
– Correct amount of tax to pay
– Correct due date
Publication of Tax Defaulters
• Sec 1086 TCA 1997
• Publication of information on tax
defaulters
• Name, address, occupation and details of
tax irregularity
• Published quarterly – within three months
• Iris Oifigiúil and Revenue website
No Publication
• Penalty does not exceed 15% of tax due or
• Aggregate settlement, including tax
penalties and interest does not exceed
€30,000
or
• Qualifying Disclosure made
Revenue Audit - Qualifying Disclosures
• Key features of settlement process in
Revenue Audit
• Penalty mitigation
• Non publication
• No Prosecution
Revenue Investigation
• Serious matter for taxpayer
• Revenue of opinion that deliberate
underpayment of tax has taken place
• Investigation with view to criminal
prosecution
• Legal advice should be sought
Investigation Cases
• Significant unexplained build up of
capital
• Unresolved legacy cases
• Reliable third party information on
undeclared income or assets
Investigations
• 2010 Revenue Audit Code does not cover
Investigations
• Statutory and administrative provisions
outlined in Code will apply
– Reviews
– Appeals
– Interest
– Penalties
– Publication
Investigations
• Once taxpayer notified of Investigation
• No mitigation of penalties
• Settlement may be published if > Sec 1086
TCA 1997 threshold
Special Public Investigations
May 2001
Bogus Non Resident Accounts
2004
Off shore Accounts
2005
SPIP Investigations
2006
Construction Industry Project
Deposit Accounts > €100,000
Funds lodged from undeclared income
March 2009 Foreign and Irish Trust Settlements
2008
Special Investigations
• Each investigation stipulates measures
• Typically
– Period within which to file intention to disclose
– Time limit within which to make disclosure
– Payment with interest and penalties by
specified time limit
– Non publication, no prosecution and
mitigation of penalties
Legal Implications
• Once special investigation launched
• Taxpayer cannot avail of Qualifying
Disclosure
– No mitigation of penalties*
– Publication not avoided
– Prosecution may be initiated
• Sec 1078,531,1056 TCA 1997
• *75% reduction in penalties may apply if
co-operation given
Selection of Cases
• Audit cases with unexplained growth of
wealth
• Audit cases indicating significant under
declarations over number of years
• Cases where information obtained under
High Court Order
– Offshore accounts/Single Premium Policies
• Revenue Investigation Branch database
– STRs and other third party information
Notification of Investigation
• Enquiry letter from Revenue Investigations
Branch
• “Notification of a Revenue Investigation”
• Evidence of serious tax evasion
• During Revenue Audit
– Notified Audit ceasing and Investigation
commencing
• Exceptional cases – no advance notice
• No recourse to penalty mitigation or 2010
Code
Revenue Investigation
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Serious matter for taxpayer
Legal advice sought immediately
Experienced solicitor from start to finish
Prompt responses to requests for
information
• Possible mitigation of penalties if cooperation given
• Solicitor and tax advisor review matters
• Taxpayer disclosure of all matters
Penalties
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Deliberate Behaviour category
Sec 1077E(2) & (3) – tax geared penalties
Maximum penalty 100%
Full co-operation
Reduction to 75%
Appeals Process
Customer Services Complaint
Internal Review
Statutory Appeal
Ombudsman
Equality Tribunal
Judicial Review – High Court
Internal Review Process
• Conduct of Audit
• Proposed adjustments
– Profits, Reliefs, Allowances, Tax Computations
• Penalties
• Publication criteria
• Notice of Opinion on penalties
Internal Review Process
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Request must be in writing
State type of review and specific grounds
Local level by District Manager or
Internal Review Unit
Does not interfere with right to appeal to
Appeal Commissioners
• Statutory time limits apply
Appeal Commissioners
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Appointed by Minister for Finance
Section 850 TCA 1997
Normally two Commissioners
Statutory duties under TCA 1997
IT, CT, CGT, CGT, SD, Customs, Excise
Duty, VRT and VAT appeals
• Refusal of certain applications by Revenue
– Artists Exemption
– Subcontractor Cert
Appeal Commissioners
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Amount of tax payable
Matters of fact
Legal or technical issues
Interpretation of tax legislation
– Domestic; EU; DTAs
• Power and function of Appeal
Commissioners
• To confirm or abate or reduce the
assessment
Appeal Commissioners
• Onus on taxpayer to produce evidence
• Assessment is excessive – Sec 934(3)
TCA 1997
• Four year time limit to make assessments
• Sec 924 and 956 TCA – fraud and neglect
cases
• No time limit applies
Making the Appeal
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Sec 957(4) TCA 1997
Written notice stating grounds of appeal
Within 30 days of Notice of Assessment
Sec 933(7) TCA 1997
Late appeal allowed if conditions met
Tax not in dispute must be paid before
entitlement to Appeal
Making the Appeal
• Refusal by Inspector to allow Appeal can
be appealed
• Sec 933(1)(b) & (c) TCA 1997
• Reasons to refuse Appeal must be
specified
• Delay in listing Appeal by Inspector
• Taxpayer has right to appeal to Appeal
Commissioners
Hearing of Appeal
• Appeal hearings relatively informal
• Sec 857 TCA 1997 – Appeal
Commissioners statutory declaration
• To preserve confidentiality of taxpayers
• Two Appeal Commissioners hear
complex cases
Appeal Hearing
• Onus on proof on taxpayer
• Revenue not required to give evidence
• Revenue make submissions that burden
of proof not discharged and assessments
should stand
• Taxpayer not required to have
professional representation
• Advisable in most cases to be
represented by a professional
Appeal Hearing
• Appeal Commissioner may dismiss
appeal
• Where insufficient information furnished
by taxpayer to determine the Appeal
• Taxpayer can only proceed to Higher
Courts by way of seeking a Judicial
Review
Case Stated
• Sec 941 TCA 1997
• If either taxpayer or inspector considers
Appeal Commissioners decision to be
incorrect on point of law  he may
request Commissioner to state a case to
the High Court
• Application within 21 days of decision
• Taxpayer must pay tax as determined by
Appeal Commissioner
Rehearing of Case
• Taxpayer can make an appeal to the
Circuit Court
• Circuit Court appeal is a full rehearing of
the case
• If either party unhappy with Circuit Court
decision
• Case Stated from Circuit Court to High
Court
• High Court appeal may be taken to
Supreme Court
Costs
• Prior to 1996
• No costs awarded to either side below
High Court
• Each side bore own costs before Appeal
Commissioners and Circuit Court
Inspector of Taxes v Arida Ltd
• Supreme Court upheld High Court
decision
• Costs awarded to taxpayer in income tax
appeal
• In High Court and Supreme Courts, lsoing
side bears costs
Round Up
• Taxpayers Obligations and Rights
– Self Assessment
– Pay and File
– Record keeping
– No statutory rights for taxpayers
– Customer Service Charter
Revenue Powers
• Routine powers
– Audit situations
• Non routine powers
– Search and seizure
– Information seeking
• Power of attachment
• Revenue Offences
• Professional advisors – confidential
nature
Revenue Investigations
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Revenue Audit v Revenue Investigation
2010 Code of Practice
Special Public Investigations
Selection of Cases
Type of disclosure and penalties
Appeals Process
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Complaints/Review process
Formal Appeal Process
Appeal Commissioners
Hearing of case
Right of Appeal