Dáil Éireann debate -
Thursday, 18 Nov 1993

Vol. 435 No. 11

Written Answers. - Tax Amnesty.

Thomas P. Broughan

Question:

62 Mr. Broughan asked the Minister for Finance if the 15 per cent tax amnesty covers people who have tax arrears for which they have already declared a liability but does not extend to cases which have already reached the enforcement stage; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Section 2 of the Waiver of Certain Tax, Interest and Penalties Act, 1993 provides for what is commonly referred to as "the incentive amnesty" or "the 15 per cent amnesty". This amnesty covers certain income and chargeable capital gains of individuals for the period up to 5 April, 1991 where the tax, or any part of the tax, due in respect of such income and gains has not been paid. Thus, it extends to both undisclosed liabilities to income tax and capital gains tax and to arrears of such taxes already on record.

Tax which, on 24 May, 1993 was the subject of enforcement through sheriff action, court proceedings or the power of attachment is excluded from the incentive amnesty.

The amnesty gives those who failed to meet their tax obligations in the past one last chance to put their tax affairs in order, in advance of the introduction of more stringent penalties for tax fraud, and the continuing strengthening of Revenue's compliance programmes. It is not an option to be availed of by those who were less than compliant in the past. It is an obligation to which they must adhere or pay the penalties.

It is clear from the thousands of inquiries to the Revenue Commissioners that there is considerable interest in the amnesty. To take advantage of the opportunity provided by the incentive amnesty a taxpayer must declare all outstanding liabilities before 30 November 1993.