Revenue Powers

Conor Kennedy

Law Library,

Four Courts,

Dublin 7.

Revenue Powers Group

Set up in March 2003 Terms of reference

– To enquire on main statutory powers available to Revenue

– To advise Minister as to• Effectiveness of powers

• Appropriate balance – need to secure revenue of state v rights of taxpayers

• Need for further powers?

• Comparable powers in other jurisdictions

– To report on results

Revenue Powers Group

Conclusions– Powers in line with international standards– Evidence of confrontation– Legislation should contain key restraints– Legislation should provide safeguards for

taxpayers

Commission on Taxation– review the structure, efficiency and

appropriateness of the Irish taxation system.

Criminal Assets Bureau

Criminal Assets Bureau Act 1996– Identify assets obtained from criminal activities

– Deprive or deny persons of those assets

– Investigate & undertake preparatory work

Disclosure of Certain Information for Taxation and Other Purposes Act 1996– Exchange of information between Revenue & Gardai

Proceeds of Crime Act 1996– Power to seize property

Revenue Report 2008

Audits Completed No. Yield €m

Comprehensive 3,904 262

Single Tax/Duty 6,074 184

Multi Tax/Duty 2,065 65

Single Issue/

Transaction 1,363 59

Assurance Checks 345,452 63

Revenue Report 2008

Tax Customs Total

Convictions 15 5 20

Referred to DPP 6 5 11

DPP directions 6 5 11

DPP summons 7 5 12

Total 34 20 54

Part 37 - Administration

S.849 – Care and management

S.859– Anonymity

Part 41 – Self Assessment S.951

– Obligation to make a return S.952

– Obligation to pay preliminary tax S.954

– Making of assessments S.955

– Amendment of and time limit for assessments S.956

– Inspectors’ right to make enquiries and amend assessments

Part 38 - Returns of Income and Gains Chapter 1

– Returns of income

Chapter 2– Corporation tax returns

Chapter 3– Other obligations and returns

Chapter 4– Revenue powers

Main Revenue Powers S.899

– Inspector’s right to make enquiries S.900

– Power to call for production of books S.901

– Application to High Court: Production of books and information

S.902– Information to be furnished by third party

S.902A– Application to the High Court: Information from third party

Main Revenue Powers 902B

– Power of inspection: life policies S.903

– Power to inspect PAYE records S.904

– Power of inspection

Revenue Powers S.904A

– Power of inspection: returns and collection of appropriate tax

S.904B – Report of Committee of Public Accounts: publication

etc. S.904C

– Power of inspection (returns and collection of appropriate tax) assurance companies

S. 904D – Power of inspection (returns and collection of

appropriate tax) investment undertakings

 Revenue Powers

S.904E – Power of inspection: claims by authorised

insurers S.904F

– Power of inspection: claims by qualifying lenders

S.904G – Power of inspection: claims by qualifying

insurers

Revenue Powers

S. 904H – Power of inspection: qualifying savings

managers S. 904I

– Power of inspection: returns and collection of dividend withholding tax.

S. 904J – Power of inspection: tax deduction from

payments in respect of professional services by certain persons

Revenue Powers S.905

– Inspection of documents and records S.906

– Authorised Officers and Garda Siochana S. 906A

– Information to be furnished by financial institutions

S.907– Application to the Appeal Commissioners

Main Revenue Powers S.908

– Application to the High Court seeking order requiring information: financial institutions

S.908A– Power to obtain information from financial institutions

S.908B– Application to High Court seeking order requiring

information: associated institutions

908C – Search warrants

Revenue Powers

S.908D – Order to produce evidential material

S.909– Power to require return of property

S.911– Valuation of assets

S.912– Computer documents and records

Main Revenue Powers

S.912A– Information for tax authorities in other territories

Section 912B – Questioning of Suspects in Garda Siochana Custody

in certain circumstances

Chapter 5– Capital Gains tax returns

Chapter 6– Electronic transmission of returns of income

Part 42 – Collection and Recovery Powers S.968

– Judgements for recovery of income tax

S.969– Duration of imprisonment

S.971– Priority of income tax over other debts

S.972– Duty of employers

Part 47 – Penalties S.1052

– Penalties for failure to make certain returns S.1053

– Penalty for fraudulently or negligently making incorrect returns

S.1054– Increases penalties

S.1055– Penalty for assisting in making incorrect returns

Part 47 – Penalties S.1056

– Penalty for false statement

S.1065– Mitigation of penalties

S.1078– Revenue offences

S.1078(a)– Concealing facts

S.1079– Duties of relevant persons

Part 47 – Penalties

S.1084– Surcharge for late returns

S.1085– Corporation Tax, late returns, restrictions

S.1086– Publication of names of tax defaulters

Tax Prosecution Criteria

Use of forged or falsified documents Systematic scheme to evade tax False claims for repayment Failure in remitting fiduciary taxes Deliberate and serious omissions from tax

returns

Tax Prosecution Criteria

Use of offshore bank accounts to evade tax Insidious schemes of tax evasion Aiding and abetting the commission of a tax

offence Offences under the Waiver of Certain Tax,

Interest and Penalties Act 1993

Decision to Prosecute

Strength of available admissible evidence Period of time since offence Likely length & expense of trial Need for a deterrent Whether a full disclosure of irregularities

made