Above certain thresholds, public bodies generally require tax clearance certificates from persons or bodies to whom grants, subsidies, or other types of payments are being made or from contractors in situations where the public bodies are buying, hiring, or leasing goods or generally expending public monies. The aim, in the first instance, is to protect the interests of taxpayers by ensuring tax compliance on the part of those persons or bodies in receipt of public funds. On the other hand, when public bodies dispose of assets (or grant access to property or infrastructure for commercial arrangements) with a view to raising funds, it is incumbent on them to seek to optimise the return achieved. By way of illustration, the Code of Practice for the Governance of State Bodies issued by my Department provides that, for anticipated values at or above €150,000, the method of disposal should be by auction or competitive tendering process, and that the method used should be both transparent and likely to achieve a fair-market related price. As the expenditure of public monies does not arise in such situations, it is not clear what role, if any, there may be for requiring tax clearance certification as a condition of sale.
