Vol. 432 No. 3
73 Mr. Yates asked the Minister for Finance the relationship between the Revenue Commissioners here and the Inland Revenue authorities in Britain in relation to the disclosure of non-resident Irish deposit accounts in financial institutions held in Britain.
The terms of Article 25 (Exchange of Information) of the Ireland/United Kingdom Double Taxation Convention, 1976 are similar to provisions contained in the Model Double Taxation Convention which were being formulated at that time by the Organisation for Economic Co-operation and Development (OECD) and which were published in 1977. The provisions are also on the same lines as corresponding provisions in other double taxation treaties concluded by Ireland. The purposes of such provisions is to prevent fiscal evasion by a resident of one of the partner states in respect of income and capital gains arising in the other State.
Article 25 permits the exchange of such information as is necessary for the carrying out of the Convention. It does not require the disclosure of information which would be contrary to the laws or administrative practice, or could not be obtained under the laws or normal course of administration, of either of the treaty partner countries. Information which would disclose a trade, business, industrial, commercial or professional secret or trade process or information, the disclosure of which would be contrary to public policy, also need not be exchanged. The acceptance by Ireland of provisions of this kind is in general a necessary prerequisite to the conclusion of double taxation conventions with other countries which would on balance be seen as advantageous to this country.
The Council Directive 77/799/EEC concerning mutual assistance by the competent authorities of the member states in the field of direct taxation provides that the competent authorities of member states must disclose to the competent authorities of other member states any information in the field of direct taxation which is required to be disclosed by virtue of that Directive. The directive contains detailed rules regarding the circumstances which must exist if information is to be exchanged.
